Alpha-Centric ESG Research

Kyle Rudden

Announcements keep on coming from <a href="https://www.smartkarma.com/entities/singapore-exchange-ltd" target="_blank" data-smartkarma-citation="entities:1047:1" rel="noopener">Singapore Exchange (SGX SP)</a> and its SGX FIRST sustainable investing platform. Weeks after launching Climate Impact X – SGX's carbon exchange joint venture with DBS, Standard Chartered, and Temasek – the exchange announced (on 14 June) the launch of the <a href="https://www.smartkarma.com/entities/sgx-nikkei-esg-reit-index-futures" target="_blank" data-smartkarma-citation="entities:33480:1" rel="noopener">SGX Nikkei ESG-REIT Index Futures (JRTA INDEX)</a> contract.For SGX, the launch further solidifies its position as Asia's leading financial exchange for all things sustainable investing and finance (and of course, REITs). For investors, the ESG-REIT Index futures contract expands the menu of products for REIT-related ESG investing. That is far more significant than it sounds; Real Estate is a sleeping ESG giant of sorts, and investment products are lacking.Therein lies the second of two goals for this Insight. The first is, rather obviously, to delve into the SGX Nikkei ESG-REIT product – the underlying index and futures contract. The second is to take it as an opportunity to broach an important, but often underrated, topic – the relationships between ESG and the Real Estate sector, including REITs. Much of it positive, or at least potentially so.Think about it. One billion buildings in the world already, and expected to double by 2060.

Announcements keep on coming from Singapore Exchange (SGX SP) and its SGX FIRST sustainable investing platform. Weeks after launching Climate Impact X – SGX's carbon exchange joint venture with DBS, Standard Chartered, and Temasek – the exchange announced (on 14 June) the launch of the SGX Nikkei ESG-REIT Index Futures (JRTA INDEX) contract.For SGX, the launch further solidifies its position as Asia's leading financial exchange for all things sustainable investing and finance (and of course, REITs). For investors, the ESG-REIT Index futures contract expands the menu of products for REIT-related ESG investing. That is far more significant than it sounds; Real Estate is a sleeping ESG giant of sorts, and investment products are lacking.Therein lies the second of two goals for this Insight. The first is, rather obviously, to delve into the SGX Nikkei ESG-REIT product – the underlying index and futures contract. The second is to take it as an opportunity to broach an important, but often underrated, topic – the relationships between ESG and the Real Estate sector, including REITs. Much of it positive, or at least potentially so.Think about it. One billion buildings in the world already, and expected to double by 2060.

SGX Nikkei ESG-REIT Index Futures Launch Is an Ideal Backdrop for an Important Topic: ESG and REITs

Index Rebal/Special Situations, Quiddity Advisors

Janaghan Jeyakumar, CFA

Index Rebal/Special Situations

Quiddity Advisors

Pan-Asia Catalysts/Events

Event-Driven

Mitsubishi Estate Logistics / Event-Driven

<ul>
<li>Last Friday, small-cap logistics JREIT <a href="https://www.smartkarma.com/entities/mitsubishi-estate-logistics" target="_blank" data-smartkarma-citation="entities:25867:1" rel="noopener">Mitsubishi Estate Logistics (3481 JP)</a> ("MEL") announced a follow-on equity offering to fund part of their recently-announced property acquisition. </li>
<li>The primary offer quantity is 51,000 units. In addition, there will also be an over-allotment quantity of 2,550 units. The total size of this offering could be roughly ¥23bn (~US$157mn). </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>


Last Friday, small-cap logistics JREIT Mitsubishi Estate Logistics (3481 JP) ("MEL") announced a follow-on equity offering to fund part of their recently-announced property acquisition. 
The primary offer quantity is 51,000 units. In addition, there will also be an over-allotment quantity of 2,550 units. The total size of this offering could be roughly ¥23bn (~US$157mn). 
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.


Mitsubishi Estate Logistics (3481 JP): Offering Could Trigger Outperformance Vs Peers Like Last Time

Advance Logistics Investment / Event-Driven

<ul>
<li>Today after the close, small-cap logistics JREIT <a href="https://www.smartkarma.com/entities/itochu-advance-logistics-investment" target="_blank" data-smartkarma-citation="entities:28286:1" rel="noopener">Itochu Advance Logistics Investment (3493 JP)</a> ("IAL") announced a follow-on equity offering to fund part of their recently-announced property acquisition. </li>
<li>The primary offer quantity is 70,773 units. In addition, there will also be an over-allotment quantity of 3,500 units. The total size of this offering could be roughly ¥10bn (~US$76mn). </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 logistics JREIT Itochu Advance Logistics Investment (3493 JP) ("IAL") announced a follow-on equity offering to fund part of their recently-announced property acquisition. 
The primary offer quantity is 70,773 units. In addition, there will also be an over-allotment quantity of 3,500 units. The total size of this offering could be roughly ¥10bn (~US$76mn). 
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.


Itochu Advance Logistics (3493 JP): Offering Could Trigger Outperformance Vs Peers

<ul>
<li>After the close on 7th February 2022, logistics JREIT <a href="https://www.smartkarma.com/entities/mitsubishi-estate-logistics" target="_blank" data-smartkarma-citation="entities:25867:1" rel="noopener">Mitsubishi Estate Logistics (3481 JP)</a> ("MEL") announced a follow-on equity offering to fund part of their recently announced property acquisition. </li>
<li>The primary offer quantity is 56,000 units. In addition, there will also be an over-allotment quantity of 2,800 units. The total size of this offering could be roughly ¥24.5bn (~US$213mn). </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>


After the close on 7th February 2022, logistics JREIT Mitsubishi Estate Logistics (3481 JP) ("MEL") announced a follow-on equity offering to fund part of their recently announced property acquisition. 
The primary offer quantity is 56,000 units. In addition, there will also be an over-allotment quantity of 2,800 units. The total size of this offering could be roughly ¥24.5bn (~US$213mn). 
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.


Mitsubishi Estate Logistics (3481 JP): Offering Could Trigger Outperformance Vs Peers

<ul>
<li>
<a href="https://www.smartkarma.com/entities/sosila-logistics-reit-inc" target="_blank" data-smartkarma-citation="entities:29730:1" rel="noopener">SOSiLA Logistics REIT Inc (2979 JP)</a> ("SLR") announced a follow-on equity offering after market close on 16th November 2021 to fund part of their recent property acquisition. </li>
<li>The primary offer quantity is 66,600 units. In addition, there will also be an over-allotment quantity of 3,330 units. The total size of this offering could be roughly ¥11bn (~US$100mn). </li>
<li>Below, we take a look at the attractiveness of SLR's latest offering with greater emphasis on the potential for strong post-offering secondary market performance.</li>
</ul>



SOSiLA Logistics REIT Inc (2979 JP) ("SLR") announced a follow-on equity offering after market close on 16th November 2021 to fund part of their recent property acquisition. 
The primary offer quantity is 66,600 units. In addition, there will also be an over-allotment quantity of 3,330 units. The total size of this offering could be roughly ¥11bn (~US$100mn). 
Below, we take a look at the attractiveness of SLR's latest offering with greater emphasis on the potential for strong post-offering secondary market performance.


SOSiLA Logistics REIT (2979 JP): Offering Could Trigger Outperformance Vs Peers

Japan

SOSiLA Logistics REIT, Inc. operates as a real estate investment trust company. The Company invests in logistics facilities and other fields. SOSiLA Logistics REIT provides its services throughout Japan.

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SOSiLA Logistics REIT Inc (2979 JP)

SGX Nikkei ESG-REIT Index Futures Launch Is an Ideal Backdrop for an Important Topic: ESG and REITs

Singapore Exchange just launched the SGX Nikkei ESG-REIT Index futures contract. A multi-win for SGX, but it also serves as a reminder of how...

Kyle Rudden

Mitsubishi Estate Logistics (3481 JP): Offering Could Trigger Outperformance Vs Peers Like Last Time

Small-cap logistics JREIT MEL launched a US$157mn follow-on equity offerings to fund their recently-announced acquisitions. This could trigger...

Janaghan Jeyakumar, CFA

Itochu Advance Logistics (3493 JP): Offering Could Trigger Outperformance Vs Peers

IAL's latest equity offering is significantly less dilutive in comparison to their previous offerings. There could be some DPU accretion and the...

Janaghan Jeyakumar, CFA

Mitsubishi Estate Logistics (3481 JP): Offering Could Trigger Outperformance Vs Peers

Small-cap JREIT Mitsubishi Estate Logistics launched a ~US$213mn follow-on equity offering to fund their recently-announced property acquisition....

Janaghan Jeyakumar, CFA

SOSiLA Logistics REIT (2979 JP): Offering Could Trigger Outperformance Vs Peers

SOSiLA Logistics REIT announced a US$100mn follow-on equity offering to fund the acquisition of 3 logistics properties. This could act as a...

Janaghan Jeyakumar, CFA

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