Index Rebal/Special Situations, Quiddity Advisors

Janaghan Jeyakumar, CFA

Index Rebal/Special Situations

Quiddity Advisors

Pan-Asia Catalysts/Events

Equity Capital Markets

Samty Residential Investment / Equity Capital Markets

Today after market-close, small-cap residential JREIT <a href="https://www.smartkarma.com/entities/samty-residential-investment" target="_blank" data-smartkarma-citation="entities:31049:1" rel="noopener">Samty Residential Investment (3459 JP)</a> launched a follow-on equity offering (<a href="https://www.samty-residential.com/file/news-4cc7711e97dee5986a62fe2ec3ff5b9eca89d0f2.pdf" target="_blank" rel="noopener">J-only</a>) to fund part of their recent property acquisition.The primary public offer quantity is 57,868 units and there is an over-allotment quantity of 2,893 units. The total size of the public offering could be approximately ¥7.9bn (~US$70mn).In addition to the public offering portion, there will be a third party allocation of 70,339 units which will be allocated for their Sponsor Group <a href="https://www.smartkarma.com/entities/samty-co-ltd" target="_blank" data-smartkarma-citation="entities:18956:1" rel="noopener">Samty Co Ltd (3244 JP)</a> and Daiwa Securities with whom they have a Sponsor Support Agreement. This portion could collectively amount to another ¥9.1bn (~US$83mn). The Offer Price will be determined between 19th July and 27th July 2021 (typically it has been the first day of this window for most JREIT offerings) and the business day following the offer price determination day ("Pricing Date") will be the Application Period. More below the fold.

Today after market-close, small-cap residential JREIT Samty Residential Investment (3459 JP) launched a follow-on equity offering (J-only) to fund part of their recent property acquisition.The primary public offer quantity is 57,868 units and there is an over-allotment quantity of 2,893 units. The total size of the public offering could be approximately ¥7.9bn (~US$70mn).In addition to the public offering portion, there will be a third party allocation of 70,339 units which will be allocated for their Sponsor Group Samty Co Ltd (3244 JP) and Daiwa Securities with whom they have a Sponsor Support Agreement. This portion could collectively amount to another ¥9.1bn (~US$83mn). The Offer Price will be determined between 19th July and 27th July 2021 (typically it has been the first day of this window for most JREIT offerings) and the business day following the offer price determination day ("Pricing Date") will be the Application Period. More below the fold.

JREIT Offering: Samty Residential (3459 JP) - Take It (Vs Comps)

Comforia Residential REIT / Equity Capital Markets

We have a second JREIT Offering within the first two trading days of the year! A few weeks ago, in my insight <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> I discussed how January and February will be busy months for JREIT Offerings and I highlighted that <a href="https://www.smartkarma.com/entities/comforia-residential-reit-in" target="_blank" data-smartkarma-citation="entities:8200:1" rel="noopener">Comforia Residential Reit (3282 JP)</a> ("CRR") could be one of earliest candidates to launch an offering in 2021. <blockquote>
SPECIAL MENTION - <a href="https://www.smartkarma.com/entities/comforia-residential-reit-in" target="_blank" data-smartkarma-citation="entities:8200:1" rel="noopener">Comforia Residential Reit (3282 JP)</a>: This J-REIT has announced an equity offering in early-Jan in every year since 2014 and I expect them to be one of the earliest candidates to launch an equity offering in 2021. </blockquote>Today after market-close, CRR announced a <a href="https://www.comforia-reit.co.jp/file/en-news-17c37663552ef1c7dc6da5194b51b8cbd7d3108f.pdf" target="_blank" rel="noopener">follow-on equity offering</a> to partially fund their <a href="https://www.comforia-reit.co.jp/file/en-news-4efe88d4066425a0c98e8096ed7d18e04811c842.pdf" target="_blank" rel="noopener">acquisition of three residential properties</a>. The primary offering quantity is 20,360 units and the over-allotment quantity is 3,650 units. The size of the offering could be around ¥5.7bn (~US$55mn). The Offer Price will be determined between the 13th of January and 18th of January (typically it has been the first day of this window for most JREIT offerings) and the two business days after the price determination day (pricing date) will be the application period.More below the fold.

We have a second JREIT Offering within the first two trading days of the year! A few weeks ago, in my insight J-REIT Offering Primer: Get Ready for Offering Season 2021 I discussed how January and February will be busy months for JREIT Offerings and I highlighted that Comforia Residential Reit (3282 JP) ("CRR") could be one of earliest candidates to launch an offering in 2021. 
SPECIAL MENTION - Comforia Residential Reit (3282 JP): This J-REIT has announced an equity offering in early-Jan in every year since 2014 and I expect them to be one of the earliest candidates to launch an equity offering in 2021. Today after market-close, CRR announced a follow-on equity offering to partially fund their acquisition of three residential properties. The primary offering quantity is 20,360 units and the over-allotment quantity is 3,650 units. The size of the offering could be around ¥5.7bn (~US$55mn). The Offer Price will be determined between the 13th of January and 18th of January (typically it has been the first day of this window for most JREIT offerings) and the two business days after the price determination day (pricing date) will be the application period.More below the fold.

JREIT Offering: Comforia Residential Reit (3282 JP)  - Take It (Vs Comps)

Japan

Samty Residential Investment Corporation is a real estate investment trust (REIT) which mainly invests in real estate and securitized real estate products. Properties are mainly rental accommodations, Hotels and Health care facilities in regional towns and cities.

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Samty Residential Investment (3459 JP)

JREIT Offering: Samty Residential (3459 JP) - Take It (Vs Comps)

The Samty Residential offering is a small offering on a small REIT with a higher-than-market and higher-than-size-cohort dividend yield. Follow the...

Janaghan Jeyakumar, CFA

JREIT Offering: Comforia Residential Reit (3282 JP) - Take It (Vs Comps)

As I predicted late last year, Comforia has come with an equity offering to fund the purchase of three properties. Buy the Offering as it has...

Janaghan Jeyakumar, CFA

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