Pan-Asia Catalysts/Events, Quiddity Advisors

Travis Lundy

Pan-Asia Catalysts/Events

Quiddity Advisors

Event-Driven

<ul>
<li>Yesterday, <a href="https://www.smartkarma.com/entities/mori-trust-sogo-reit-inc" target="_blank" data-smartkarma-citation="entities:8985:1" rel="noopener">Mori Trust Sogo Reit (8961 JP)</a> (MTR) and <a href="https://www.smartkarma.com/entities/mori-trust-hotel-reit-inc" target="_blank" data-smartkarma-citation="entities:23754:1" rel="noopener">Mori Trust Hotel Reit (3478 JP)</a> (MTH) announced a merger to be effective 1 March 2023. MTR will be the survivor.</li>
<li>The ratio is 1.00 : 0.92 MTR:MTH but MTR will conduct a 2:1 stock split on effective date to make it 1.00 : 1.84 to allow retail to continue holding.</li>
<li>This will effectively increase the size of MTR by 35%, and re-distributes earnings structure. There will be index consequences.</li>
</ul>


Yesterday, Mori Trust Sogo Reit (8961 JP) (MTR) and Mori Trust Hotel Reit (3478 JP) (MTH) announced a merger to be effective 1 March 2023. MTR will be the survivor.
The ratio is 1.00 : 0.92 MTR:MTH but MTR will conduct a 2:1 stock split on effective date to make it 1.00 : 1.84 to allow retail to continue holding.
This will effectively increase the size of MTR by 35%, and re-distributes earnings structure. There will be index consequences.


Mori Trust Sogo - Mori Trust Hotel REIT Merger

<ul>
<li>
<a href="https://www.smartkarma.com/entities/japan-excellent-inc" target="_blank" data-smartkarma-citation="entities:12745:1" rel="noopener">Japan Excellent (8987 JP)</a> has been the worst-performing Office J-REIT amongst the existing crop since the end of 2019.</li>
<li>Today, we got news of a possible flow event - a buyer.</li>
<li>There is room here for Japan Excellent to outperform over the next several months.</li>
</ul>



Japan Excellent (8987 JP) has been the worst-performing Office J-REIT amongst the existing crop since the end of 2019.
Today, we got news of a possible flow event - a buyer.
There is room here for Japan Excellent to outperform over the next several months.


Japan Excellent REIT (8987) - Possible Sustained Flow Event

Index Rebal/Special Situations, Quiddity Advisors

Janaghan Jeyakumar, CFA

Index Rebal/Special Situations

<ul>
<li>Today after the close, <a href="https://www.smartkarma.com/entities/nippon-building-fund-inc" target="_blank" data-smartkarma-citation="entities:1900:1" rel="noopener">Nippon Building Fund (8951 JP)</a><strong>("NBF")</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 2,500 units. The total size of this offering could be roughly ¥33bn (~US$285mn). </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, Nippon Building Fund (8951 JP)("NBF") 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 2,500 units. The total size of this offering could be roughly ¥33bn (~US$285mn). 
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.


Nippon Building Fund (8951): Offering Could Trigger Outperformance Vs TSEREIT Index

<p>Japan's largest Office REIT <a href="https://www.smartkarma.com/entities/nippon-building-fund-inc" target="_blank" data-smartkarma-citation="entities:1900:1" rel="noopener">Nippon Building Fund (8951 JP)</a> ("NBF") announced a ¥140bn (~US$1.3bn) <a href="https://www.nbf-m.com/nbf_e/release/files/20201009_Notice%20Concerning%20Issue%20of%20New%20Investment%20Units%20and%20Secondry%20Offering%20on%20Investments%20Units.pdf" target="_blank" rel="noopener">follow-on equity offering</a> on 9th October 2020 and I provided a brief introduction to the background of the REIT and its offerings history in <a href="https://www.smartkarma.com/insights/nippon-building-fund-8951-jp-reit-offering-take-it" target="_blank" data-smartkarma-citation="insights:44090" rel="noopener">Nippon Building Fund (8951 JP) REIT Offering: Take It</a>. As mentioned in that insight, the pricing date was expected to be between 20th and 22nd of October 2020 (pricing is normally on the first day in the pricing period).</p><p>Today, after market close, NBF <a href="https://www.nbf-m.com/nbf_e/release/files/%E6%9D%A1%E4%BB%B6%E6%B1%BA%E5%AE%9A%E3%83%97%E3%83%AC%E3%82%B9_E.pdf" target="_blank" rel="noopener">announced</a> the Issue Price to be ¥527,240/unit.</p><p>Below is a brief recap of the Deal details (including confirmation of key dates) and a closer look at the attractiveness of this pricing. </p>

Japan's largest Office REIT Nippon Building Fund (8951 JP) ("NBF") announced a ¥140bn (~US$1.3bn) follow-on equity offering on 9th October 2020 and I provided a brief introduction to the background of the REIT and its offerings history in Nippon Building Fund (8951 JP) REIT Offering: Take It. As mentioned in that insight, the pricing date was expected to be between 20th and 22nd of October 2020 (pricing is normally on the first day in the pricing period).Today, after market close, NBF announced the Issue Price to be ¥527,240/unit.Below is a brief recap of the Deal details (including confirmation of key dates) and a closer look at the attractiveness of this pricing. 

NBF (8951 JP) REIT Offering: Pricing Announced. Wide Discount to Undisturbed.

<p>Japan's largest Office REIT <a href="https://www.smartkarma.com/entities/nippon-building-fund-inc" target="_blank" data-smartkarma-citation="entities:1900:1" rel="noopener">Nippon Building Fund (8951 JP)</a> ("NBF") announced a ¥140bn (~US$1.3bn) <a href="https://www.nbf-m.com/nbf_e/release/files/20201009_Notice%20Concerning%20Issue%20of%20New%20Investment%20Units%20and%20Secondry%20Offering%20on%20Investments%20Units.pdf" target="_blank" rel="noopener">follow-on equity offering</a> on 9th October 2020 to fund their recent acquisition of Shinjuku Mitsui Building and Gran Tokyo South Tower. </p>
<p>This is the biggest REIT offering in Japan this year so far, is large historically, and is the first offering by NBF, the largest Office REIT by Market Cap since 2014.</p>
<p>NBF plans to offer 171,000 units in the Domestic Primary Offering and 58,000 units in the International Offering (mainly in the U.S., Europe and Asia). However, final allocation can be different depending on demand conditions. The over-allotment quantity will be 11,500 units. </p>
<section class="figure">
<figure class="editor-figure mceNonEditable"><img src="https://static-prod.smartkarma.com/images/media/000/165/065/original/Price%20Performance.png?1602594897" class="editor-image img-responsive" data-smartkarma-image-id="165065"></figure>
<div class="content-caption">Source: Quiddity, Capital IQ (Data)</div>
</section>
<p><em>As always, there is more below the fold. </em></p>

Japan's largest Office REIT Nippon Building Fund (8951 JP) ("NBF") announced a ¥140bn (~US$1.3bn) follow-on equity offering on 9th October 2020 to fund their recent acquisition of Shinjuku Mitsui Building and Gran Tokyo South Tower. 
This is the biggest REIT offering in Japan this year so far, is large historically, and is the first offering by NBF, the largest Office REIT by Market Cap since 2014.
NBF plans to offer 171,000 units in the Domestic Primary Offering and 58,000 units in the International Offering (mainly in the U.S., Europe and Asia). However, final allocation can be different depending on demand conditions. The over-allotment quantity will be 11,500 units. 


Source: Quiddity, Capital IQ (Data)

As always, there is more below the fold. 

Nippon Building Fund (8951 JP) REIT Offering: Take It

Japan

MORI HILLS REIT INVESTMENT CORPORATION is a real estate investment trust (REIT). The Company invests in real estate properties such as commercial and office buildings.

Mori Hills REIT Investment Corporation (3234 JP)

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Mori Hills REIT Investment Corporation (3234 JP)

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Travis Lundy

Japan Excellent REIT (8987) - Possible Sustained Flow Event

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Nippon Building Fund (8951): Offering Could Trigger Outperformance Vs TSEREIT Index

One of Japan's largest JREITs Nippon building Fund launched a ~US$285mn follow-on equity offering to fund their recent acquisitions. This might...

Janaghan Jeyakumar, CFA

NBF (8951 JP) REIT Offering: Pricing Announced. Wide Discount to Undisturbed.

The Nippon Building Fund (8951) REIT placement - the largest J-REIT placement this year - has priced. Based on historical patterns and value, it is...

Janaghan Jeyakumar, CFA

Nippon Building Fund (8951 JP) REIT Offering: Take It

NBF's ¥140bn Offering is the largest J-REIT Offering in 2020. Historically, NBF Follow-On Offerings outperform TSEREIT and perform on an absolute...

Janaghan Jeyakumar, CFA

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