Listed Real Estate Asia, KT Capital Group

Jacob Cheng

Listed Real Estate Asia

KT Capital Group

Principal investments and advisory firm that focuses on connecting the CIS countries with East Asia.

Principal investments and advisory firm

Thematic (Sector/Industry)

<ul>
<li>Hongdae Exit Validates Value-Add: Invesco selling Korner 136 for USD 187m proves aggressive capital recycling and tenant repositioning unlock massive premiums, even in high-cost debt environments.</li>
<li>Sector Polarization Accelerates: Seoul prime office and high-street retail are surging with historic low vacancies, while logistics oversupply creates targeted distress opportunities for highly selective capital.</li>
<li>Replicate Institutional Alpha via REITs: Listed proxies like IGIS Value Plus and KORAMCO Life Infra offer retail investors exposure to aggressive restructuring, capturing robust dividend yields near 9%.</li>
</ul>


Hongdae Exit Validates Value-Add: Invesco selling Korner 136 for USD 187m proves aggressive capital recycling and tenant repositioning unlock massive premiums, even in high-cost debt environments.
Sector Polarization Accelerates: Seoul prime office and high-street retail are surging with historic low vacancies, while logistics oversupply creates targeted distress opportunities for highly selective capital.
Replicate Institutional Alpha via REITs: Listed proxies like IGIS Value Plus and KORAMCO Life Infra offer retail investors exposure to aggressive restructuring, capturing robust dividend yields near 9%.


Seoul Real Estate Playbook: Capital Recycling, Value-Add Alpha and Top REIT Proxies

Korea/Asia, Events, IPOs, Douglas Research Advisory

Douglas Kim

Korea/Asia, Events, IPOs

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In this insight, we discuss the best ways to position for the growth of REITs in South Korea. In the sections below, we have categorized four main ways in which we think investors would be best positioned to invest in the growing REIT market in Korea over the next 1-2 years, which include the following: 
I) <a href="https://www.smartkarma.com/entities/esr-kendall-square-reit-co-ltd" target="_blank" data-smartkarma-citation="entities:32172:1" rel="noopener">ESR Kendall Square REIT (365550 KS)</a> 
II) Major Korean Construction Companies Entering REIT Market
III) Upcoming New Listings in the REIT Market
IV) Other Notable REITs in Korea
</div>


In this insight, we discuss the best ways to position for the growth of REITs in South Korea. In the sections below, we have categorized four main ways in which we think investors would be best positioned to invest in the growing REIT market in Korea over the next 1-2 years, which include the following: 
I) ESR Kendall Square REIT (365550 KS) 
II) Major Korean Construction Companies Entering REIT Market
III) Upcoming New Listings in the REIT Market
IV) Other Notable REITs in Korea


Best Ways to Position for the Growth of REITs in Korea

Pan-Asia Index Rebalances/ Events/ Delta One, Periscope Analytics

Brian Freitas

Pan-Asia Index Rebalances/ Events/ Delta One

Periscope Analytics

Periscope Analytics focuses on event-driven trades across Asia Pacific and provides comprehensive, timely and systematic coverage of index changes to major Asia Pacific indices in a structured manner.

The analysis includes forecasted inclusions and exclusions to all major Asian indices that have significant amount of tracking assets, including estimates of passive buy/sell flow on the stocks. The service also provides commentary and impact of market consultations, ground rule changes, and other events (IPOs, spin-offs, M&A) that could lead to index changes and passive flow.

Periscope Analytics works with multi-strategy hedge funds, proprietary trading firms, stat arb trading groups and long-only investors that invest and trade in the Asia Pacific region with the data being used to trade index rebalances, avoid pre-positioning and passive flow, and to time entry into and exit from stocks.

Event-Driven Trades Across Asia Pacific

Index Rebalance

<ul>
<li>The last week was a very busy one. The coming week has some announcements and implementations but is a relatively quieter one.</li>
<li>The <a href="https://www.smartkarma.com/entities/sse-science-and-technology-innovation-board-50-index" target="_blank" data-smartkarma-citation="entities:29279:1" rel="noopener">SSE STAR50 (STAR50 INDEX)</a> and STAR100 Index changes for March will be implemented at the close on Friday, the 8th.</li>
<li>Another week of inflows for the <a href="https://www.smartkarma.com/entities/ishares-msci-emerging-markets-223f5da3-7054-4e4f-bc55-b7f0852c2581" target="_blank" data-smartkarma-citation="entities:31998:1" rel="noopener">iShares Emerging Markets ex-China (EMXC US)</a> ETF as creations cross US$2bn for 2024. ETF AUM has gone from US$420m in 2021 to US$11bn now!</li>
</ul>


The last week was a very busy one. The coming week has some announcements and implementations but is a relatively quieter one.
The SSE STAR50 (STAR50 INDEX) and STAR100 Index changes for March will be implemented at the close on Friday, the 8th.
Another week of inflows for the iShares Emerging Markets ex-China (EMXC US) ETF as creations cross US$2bn for 2024. ETF AUM has gone from US$420m in 2021 to US$11bn now!


Index Rebalance & ETF Flow Recap: STAR50/100, FXI, NIFTY/NEXT50, S&P500, KOSPI, Goodman, Ecopro BM

Event-Driven

<ul>
<li>The review period for the March rebalance of the KOSPI Size Indices started 1 December and will end 29 February. The changes will be implemented at the close 14 March.</li>
<li>We see 3 migrations from MidCap to LargeCap, 4 new adds to LargeCap, 7 migrations from LargeCap to MidCap, and 11 migrations from SmallCap to MidCap.</li>
<li>On average, stocks migrating from SmallCap to MidCap have the lowest price to book value and have historically outperformed stocks migrating between other categories.</li>
</ul>


The review period for the March rebalance of the KOSPI Size Indices started 1 December and will end 29 February. The changes will be implemented at the close 14 March.
We see 3 migrations from MidCap to LargeCap, 4 new adds to LargeCap, 7 migrations from LargeCap to MidCap, and 11 migrations from SmallCap to MidCap.
On average, stocks migrating from SmallCap to MidCap have the lowest price to book value and have historically outperformed stocks migrating between other categories.


KOSPI Size Indices - Potential Migrations as Focus Is on Price to Book

<ul>
<li>The review period for the March rebalance of the KOSPI Size Indices started 1 December and will end 29 February. The changes will be implemented at the close 14 March.</li>
<li>We currently see 3 migrations from MidCap to LargeCap, 3 new adds to LargeCap, 6 migrations from LargeCap to MidCap, and 11 migrations from SmallCap to MidCap.</li>
<li>Historically, stocks migrating from SmallCap to MidCap have outperformed stocks that are migrating between other categories.</li>
</ul>


The review period for the March rebalance of the KOSPI Size Indices started 1 December and will end 29 February. The changes will be implemented at the close 14 March.
We currently see 3 migrations from MidCap to LargeCap, 3 new adds to LargeCap, 6 migrations from LargeCap to MidCap, and 11 migrations from SmallCap to MidCap.
Historically, stocks migrating from SmallCap to MidCap have outperformed stocks that are migrating between other categories.


KOSPI Size Indices - The Outperformance Continues

South Korea

Koramco Energy Plus REIT provides real estate services. The Company mainly offers non-residential real estate rental and sales services. Koramco Energy Plus Reit also operates real estate trust businesses.

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Koramco Energy Plus REIT (357120 KS)

Seoul Real Estate Playbook: Capital Recycling, Value-Add Alpha and Top REIT Proxies

Invesco selling Korner 136 for USD 187m proves aggressive capital recycling and tenant repositioning unlock massive premiums, even in high-cost...

Jacob Cheng

Best Ways to Position for the Growth of REITs in Korea

In this insight, we discuss the best ways to position for the growth of REITs in South Korea. ESR Kendall Square REIT is our top pick in this sector.

Douglas Kim

Index Rebalance & ETF Flow Recap: STAR50/100, FXI, NIFTY/NEXT50, S&P500, KOSPI, Goodman, Ecopro BM

This recap highlights Insights covering Asian index rebalances (announcements/ forecasts/ IPO Fast Entry/ M&A driven changes). We also highlight...

Brian Freitas

KOSPI Size Indices - Potential Migrations as Focus Is on Price to Book

We see 35 migrations and 7 new inclusions for the KOSPI Size indices. Stocks migrating higher have outperformed stocks migrating lower. Some stocks...

Brian Freitas

KOSPI Size Indices - The Outperformance Continues

We see 34 migrations and 6 new inclusions for the KOSPI Size indices. Stocks migrating higher have outperformed stocks migrating lower. Some stocks...

Brian Freitas

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