Pan-Asia Catalysts/Events, Quiddity Advisors

Travis Lundy

Pan-Asia Catalysts/Events

Quiddity Advisors

Event-Driven

NTT UD REIT Investment Corporation / Event-Driven

NTT UD REIT Investment Corporation (8956 JP)

<ul>
<li>Seemingly out of the blue, Singapore-based activist investment fund 3D Investment Partners has launched a partial tender offer at a small premium on <a href="https://www.smartkarma.com/entities/ntt-ud-reit-investment-corporation" target="_blank" data-smartkarma-citation="entities:19428:1" rel="noopener">NTT UD REIT Investment Corporation (8956 JP)</a>. </li>
<li>3DIP currently owns 2.2% and at maximum, will own 15.00% of the REIT units outstanding less treasury units. It intends to own the units for "pure investment purposes."</li>
<li>"Shareholder" structure is different for J-REITs vs companies. And this J-REIT has an interesting future possibility. But...</li>
</ul>


Seemingly out of the blue, Singapore-based activist investment fund 3D Investment Partners has launched a partial tender offer at a small premium on NTT UD REIT Investment Corporation (8956 JP). 
3DIP currently owns 2.2% and at maximum, will own 15.00% of the REIT units outstanding less treasury units. It intends to own the units for "pure investment purposes."
"Shareholder" structure is different for J-REITs vs companies. And this J-REIT has an interesting future possibility. But...


3D Launches Partial Tender Offer on NTT UD REIT (8956)

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.

<ul>
<li>3D has announced an unsolicited partial tender offer for <a href="https://www.smartkarma.com/entities/ntt-ud-reit-investment-corporation" target="_blank" data-smartkarma-citation="entities:19428:1" rel="noopener">NTT UD REIT Investment Corporation (8956 JP)</a> at JPY131,890 per unit, a 10.0% premium to the undisturbed price.  </li>
<li>The minimum number of units to be purchased is 115,279 (7.80% ownership ratio), and the maximum number of units to be purchased is 189,128 (12.80% ownership ratio).</li>
<li>The modest premium and an implied P/NAV &lt;1x suggest a lightish offer. 3D will have to rethink terms as shares are trading through terms. </li>
</ul>


3D has announced an unsolicited partial tender offer for NTT UD REIT Investment Corporation (8956 JP) at JPY131,890 per unit, a 10.0% premium to the undisturbed price.  
The minimum number of units to be purchased is 115,279 (7.80% ownership ratio), and the maximum number of units to be purchased is 189,128 (12.80% ownership ratio).
The modest premium and an implied P/NAV &lt;1x suggest a lightish offer. 3D will have to rethink terms as shares are trading through terms. 


NTT UD REIT (8956 JP): 3D’s Unsolicited Partial Tender Offer

Index Rebal/Special Situations, Quiddity Advisors

Janaghan Jeyakumar, CFA

Index Rebal/Special Situations

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> ("KDR") 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

<ul>
<li>
<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> announced a smallish primary offering to assist in funding a portion of its Asset Replacement Campaign involving sales and purchases and an uplift in DPU.</li>
<li>That is an occasion to look at how much of float is held by passive trackers. </li>
<li>A test was done on the top 10 J-REITs on a holder-by-holder basis to see what one could expect at a minimum. The result may surprise some.</li>
</ul>



Nippon Building Fund (8951 JP) announced a smallish primary offering to assist in funding a portion of its Asset Replacement Campaign involving sales and purchases and an uplift in DPU.
That is an occasion to look at how much of float is held by passive trackers. 
A test was done on the top 10 J-REITs on a holder-by-holder basis to see what one could expect at a minimum. The result may surprise some.


Nippon Building Fund (8951) - Calculating Passive Tracking of J-REITs and Index Events Around Offers

<a href="https://www.smartkarma.com/entities/premier-investment-corp" target="_blank" data-smartkarma-citation="entities:19428:1" rel="noopener">NTT UD REIT (8956 JP)</a> ("NUR") announced a follow-on equity offering after market close on 18th October 2021 to fund part of their recent property acquisition. The primary offer quantity is 80,600 units. In addition, there will also be an over-allotment quantity of 4,040 units. The total size of this offering could be roughly ¥12bn (~US$105mn). 
On average,  J-REITs have historically outperformed the TSEREIT Index in the wake of follow-on equity offerings, with win rates exceeding 80%. While JREIT offerings are mostly of interest to primary market investors, we also see such offerings as potential catalysts for strong secondary market performance making these events worth tracking for secondary market investors too. We have previously discussed the historical pre- and post-offering performance of JREITs in <a href="https://www.smartkarma.com/insights/j-reit-offering-primer-get-ready-for-offering-season-2021" target="_blank" data-smartkarma-citation="insights:46416" rel="noopener">J-REIT Offering Primer: Get Ready for Offering Season 2021</a>.
Below, we take a look at the attractiveness of NUR's latest offering with greater emphasis on the potential for strong post-offering secondary market performance.

NTT UD REIT (8956 JP) ("NUR") announced a follow-on equity offering after market close on 18th October 2021 to fund part of their recent property acquisition. The primary offer quantity is 80,600 units. In addition, there will also be an over-allotment quantity of 4,040 units. The total size of this offering could be roughly ¥12bn (~US$105mn). 
On average,  J-REITs have historically outperformed the TSEREIT Index in the wake of follow-on equity offerings, with win rates exceeding 80%. While JREIT offerings are mostly of interest to primary market investors, we also see such offerings as potential catalysts for strong secondary market performance making these events worth tracking for secondary market investors too. We have previously discussed the historical pre- and post-offering performance of JREITs in J-REIT Offering Primer: Get Ready for Offering Season 2021.
Below, we take a look at the attractiveness of NUR's latest offering with greater emphasis on the potential for strong post-offering secondary market performance. 

NTT UD REIT (8956 JP): Offering Could Be Catalyst for Outperformance Vs TSEREIT Index

Japan

NTT UD REIT Investment Corporation is a real estate investment trust with income producing properties primarily in the Tokyo area.  The Trust's properties include office buildings and apartment projects.

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NTT UD REIT Investment Corporation (8956 JP)

3D Launches Partial Tender Offer on NTT UD REIT (8956)

Today, Singapore-based Japan activist 3D Investment Partners announced a partial tender offer for pure investment purposes. They will get to 10-15%...

Travis Lundy

NTT UD REIT (8956 JP): 3D’s Unsolicited Partial Tender Offer

The modest premium and an implied P/NAV <1x suggest a lightish offer. 3D will have to rethink terms as shares are trading through terms.

Arun George

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

Small-cap JREIT Kenedix Residential Investment announced a follow-on equity offering to fund part of their recently-announced property acquisition....

Janaghan Jeyakumar, CFA

Nippon Building Fund (8951) - Calculating Passive Tracking of J-REITs and Index Events Around Offers

Nippon Building Fund (8951) - Japan's oldest and largest REIT - announced a small secondary offering. That provides an occasion to look at J-REIT...

Travis Lundy

NTT UD REIT (8956 JP): Offering Could Be Catalyst for Outperformance Vs TSEREIT Index

NTT UD REIT announced a JPY12bn (US$105mn) follow-on equity offering to fund part of their recent property acquisition. This could act as a...

Janaghan Jeyakumar, CFA

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