IPOs and Catalysts/Events, Global Equity Research Ltd

Arun George

IPOs and Catalysts/Events

Uncompromised, Independent, Conflict-Free Research

Global Equity Research Ltd

Global Equity Research was started in 2017 by a group of experienced research professionals. It was founded on a passionate belief in the importance and the need for uncompromised, independent, conflict-free research. We aim to provide differentiated and actionable primary and bottom up fundamental research.

Event-Driven

<ul>
<li>The merger ratio is 0.67 <a href="https://www.smartkarma.com/entities/kenedix-office-investment-co" target="_blank" data-smartkarma-citation="entities:16263:1" rel="noopener">Kenedix Office Investment Co (8972 JP)</a>/KDO units per <a href="https://www.smartkarma.com/entities/kenedix-residential-investment" target="_blank" data-smartkarma-citation="entities:17149:1" rel="noopener">Kenedix Residential Investment (3278 JP)</a>/KDR unit and 0.84 KDO units per <a href="https://www.smartkarma.com/entities/kenedix-retail-reit-corp" target="_blank" data-smartkarma-citation="entities:188:1" rel="noopener">Kenedix Retail REIT (3453 JP)</a>/KRR unit.</li>
<li>The merger is sensible due to scale (the merged entity will be the third-largest J REIT by asset size), expansion opportunities and improved capital recycling. </li>
<li>The merger requires approval from all three sets of unitholders. We think this is likely as the deal metrics are fair for all three sets of unitholders. </li>
</ul>


The merger ratio is 0.67 Kenedix Office Investment Co (8972 JP)/KDO units per Kenedix Residential Investment (3278 JP)/KDR unit and 0.84 KDO units per Kenedix Retail REIT (3453 JP)/KRR unit.
The merger is sensible due to scale (the merged entity will be the third-largest J REIT by asset size), expansion opportunities and improved capital recycling. 
The merger requires approval from all three sets of unitholders. We think this is likely as the deal metrics are fair for all three sets of unitholders. 


Kenedix Office Investment (8972 JP): Merger with Kenedix Residential and Kenedix Retail REIT

Index Rebal/Special Situations, Quiddity Advisors

Janaghan Jeyakumar, CFA

Index Rebal/Special Situations

Quiddity Advisors

Pan-Asia Catalysts/Events

Kenedix Residential Investment / Event-Driven

<ul>
<li>Today after the close, small-cap JREIT <a href="https://www.smartkarma.com/entities/kenedix-residential-investment" target="_blank" data-smartkarma-citation="entities:17149:1" rel="noopener">Kenedix Residential Investment (3278 JP)</a> ("<strong>KDR</strong>") announced a follow-on equity offering to fund part of their recently-announced property acquisition. </li>
<li>The primary offer quantity is 47,500 units. In addition, there will also be an over-allotment quantity of 2,375 units. The total size of this offering could be roughly ¥9.4bn (~US$82mn). </li>
<li>Below is a closer look at the details of this offering and the potential of this offering to trigger strong secondary market performance in the following weeks.</li>
</ul>


Today after the close, small-cap JREIT Kenedix Residential Investment (3278 JP) ("KDR") announced a follow-on equity offering to fund part of their recently-announced property acquisition. 
The primary offer quantity is 47,500 units. In addition, there will also be an over-allotment quantity of 2,375 units. The total size of this offering could be roughly ¥9.4bn (~US$82mn). 
Below is a closer look at the details of this offering and the potential of this offering to trigger strong secondary market performance in the following weeks.


Kenedix Residential Investment (3278 JP): Could Outperform Peers in the Next Few Weeks

Equity Capital Markets

Kenedix Residential Investment / Equity Capital Markets

<p>Yesterday after the close, <a href="https://www.smartkarma.com/entities/kenedix-residential-investme" target="_blank" data-smartkarma-citation="entities:17149:1" rel="noopener">Kenedix Residential Next Investment Corp (3278 JP)</a> ("<strong>KDR</strong>") announced (<a href="https://www.kdr-reit.com/Portals/0/resources/ir/%E6%96%B0%E6%8A%95%E8%B3%87%E5%8F%A3%E7%99%BA%E8%A1%8C%E5%8F%8A%E3%81%B3%E6%8A%95%E8%B3%87%E5%8F%A3%E5%A3%B2%E5%87%BA%E3%81%97%E3%81%AB%E9%96%A2%E3%81%99%E3%82%8B%E3%81%8A%E7%9F%A5%E3%82%89%E3%81%9B.pdf" target="_blank" rel="noopener">J-only</a>) a follow-on equity offering to fund part of their <a href="https://www.kdr-reit.com/Portals/0/resources/english/ir/Notice%20Concerning%20Acquisition%20of%20Properties%20and%20Conclusion%20of%20Lease%20Contracts%20with%20New%20Tenants.pdf" target="_blank" rel="noopener">recent property acquisition</a> which consisted of four residential properties and two healthcare facilities. </p><div><p>The primary offer quantity is 42,500 units and there is also an over-allotment quantity of 2,125 units. The size of this offering could be around ¥7.7bn (~US$73mn).</p></div><div>
<p>The Offer Price will be determined between 18th and 24th February (typically it has been the first day of this window for most JREIT offerings) and the day following the offer price determination day (pricing date) will be the application date. </p>
<p><em>More below the fold.</em></p>
</div>

Yesterday after the close, Kenedix Residential Next Investment Corp (3278 JP) ("KDR") announced (J-only) a follow-on equity offering to fund part of their recent property acquisition which consisted of four residential properties and two healthcare facilities. The primary offer quantity is 42,500 units and there is also an over-allotment quantity of 2,125 units. The size of this offering could be around ¥7.7bn (~US$73mn).
The Offer Price will be determined between 18th and 24th February (typically it has been the first day of this window for most JREIT offerings) and the day following the offer price determination day (pricing date) will be the application date. 
More below the fold.


JREIT Offering: Kenedix Residential Next Investment Corp (3278 JP) - Take It (Vs Comps)

<p>In 2020, we have so far witnessed 15 follow-on JREIT offerings cumulatively raising JPY463bn (~US$4.5bn). This has been something of a weak year, understandable because of the covid-19 crisis which hit equity market and JREIT prices in March, and keeping them soft for months afterwards.</p>
<p>Historically, January and February are the busiest months, for a variety of reasons.</p>
<p>From 2015-2020, on average, there have been ~7 offerings from the top 40 JREITs announced within the first two months of the calendar year accounting for roughly a third of the total number of offerings in each year during that period. </p>
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Source: Quiddity, Capital IQ (Data)</div>
In this insight, we take a look at the prospective candidates who are most likely to launch follow-on equity offerings near-term, and we look at the performance characteristics of J-REIT follow-on offerings and the likelihood of profit from participating in the event.</section>

In 2020, we have so far witnessed 15 follow-on JREIT offerings cumulatively raising JPY463bn (~US$4.5bn). This has been something of a weak year, understandable because of the covid-19 crisis which hit equity market and JREIT prices in March, and keeping them soft for months afterwards.
Historically, January and February are the busiest months, for a variety of reasons.
From 2015-2020, on average, there have been ~7 offerings from the top 40 JREITs announced within the first two months of the calendar year accounting for roughly a third of the total number of offerings in each year during that period. 









Source: Quiddity, Capital IQ (Data)
In this insight, we take a look at the prospective candidates who are most likely to launch follow-on equity offerings near-term, and we look at the performance characteristics of J-REIT follow-on offerings and the likelihood of profit from participating in the event.

J-REIT Offering Primer: Get Ready for Offering Season 2021

Head of Research, IPOs & Placements, Aequitas Research

Sumeet Singh

Head of Research, IPOs & Placements

Smartkarma

Smartkarma unites the fragmented investment industry, connecting institutional investors, independent research providers, and corporates within a single network.

Research Reinvented

<p><a href="https://www.smartkarma.com/entities/17149" target="_blank" data-smartkarma-citation="entities:17149:1">Kenedix Residential Investme (3278 JP)</a> plans to raise US$119m to part fund its acquisition of 9 properties.  The company had earlier flagged the properties as being in the acquisition pipeline, to be acquired before Feb 2019. Thus, the deal shouldn't come as a surprise. Moreover, as per the company's revised forecast, the deal will be highly accretive to DPU. It scores well on our framework even though prior deals, pre-merger, haven't done as well.</p><hr><div class="content-highlight"><h2>Placement specifics</h2></div><ul>
<li>Company Name: Kenedix…</li>
</ul>

Kenedix Residential Investme (3278 JP) plans to raise US$119m to part fund its acquisition of 9 properties.  The company had earlier flagged the properties as being in the acquisition pipeline, to be acquired before Feb 2019. Thus, the deal shouldn't come as a surprise. Moreover, as per the company's revised forecast, the deal will be highly accretive to DPU. It scores well on our framework even though prior deals, pre-merger, haven't done as well.Placement specifics
Company Name: Kenedix…


Kenedix Residential Next Inv Placement - Well Flagged, Accretive Deal

Japan

Kenedix Residential Investment Corporation is a real estate investment trust. The company invests in residential properties such as apartment buildings.

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Kenedix Residential Investment (3278 JP)

Kenedix Office Investment (8972 JP): Merger with Kenedix Residential and Kenedix Retail REIT

The merger is sensible due to scale, expansion opportunities and improved capital recycling. All three sets of unitholders will be supportive as...

Arun George