Pan-Asia Catalysts/Events, Quiddity Advisors

David Blennerhassett

Pan-Asia Catalysts/Events

Quiddity Advisors

Event-Driven

<ul>
<li>Cuscaden Peak, the sponsor of <strong><a href="https://www.smartkarma.com/entities/paragon-reit" target="_blank" data-smartkarma-citation="entities:5994:1" rel="noopener">Paragon REIT (PGNREIT SP)</a></strong> and 61.5% shareholder, has offered S$0.98/unit, in cash; or S$1.003/unit, a 7% premium to NAV, when including FY24's S$0.0233/unit cash distribution.</li>
<li>The Offer is by way of a Scheme. The Offer price has NOT been declared final. A switch option into a voluntary Offer is afforded should a competing Offer emerge.</li>
<li>Looks pretty clean. Assuming mid-late May payment, pay up to S$0.97/share for a 4%/15% gross/annualised spread. It <em>may</em> trade tighter given the early distribution payment.</li>
</ul>


Cuscaden Peak, the sponsor of Paragon REIT (PGNREIT SP) and 61.5% shareholder, has offered S$0.98/unit, in cash; or S$1.003/unit, a 7% premium to NAV, when including FY24's S$0.0233/unit cash distribution.
The Offer is by way of a Scheme. The Offer price has NOT been declared final. A switch option into a voluntary Offer is afforded should a competing Offer emerge.
Looks pretty clean. Assuming mid-late May payment, pay up to S$0.97/share for a 4%/15% gross/annualised spread. It may trade tighter given the early distribution payment.


Paragon REIT (PGNREIT SP)'s Privatisation Offer

New Zealand Professional Investment Services Firm, Forsyth Barr

Forsyth Barr

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Equity Bottom-Up

Warehouse Group Limited / Equity Bottom-Up

<ul><li>The Warehouse Group (WHS) saw mixed performances across its businesses in 3Q26.</li><li>The key disappointment was Red Sheds, which saw both sales and gross margins fall through 3Q26 and is on track to match the -NZ$25m EBIT loss it delivered in 2H25.</li><li>Partially offsetting this were better sales and gross margin performances in Blue Sheds and Noel Leeming, as well as ongoing head-office cost reductions.</li></ul>

The Warehouse Group (WHS) saw mixed performances across its businesses in 3Q26.The key disappointment was Red Sheds, which saw both sales and gross margins fall through 3Q26 and is on track to match the -NZ$25m EBIT loss it delivered in 2H25.Partially offsetting this were better sales and gross margin performances in Blue Sheds and Noel Leeming, as well as ongoing head-office cost reductions.

The Warehouse Group 3Q26 Trading Update—In The Red

<ul><li>The Warehouse Group’s (WHS) 3Q26 sales were slightly softer than we had expected though this was offset by gross margin holding up better than we anticipated.</li><li>Overall, we think this is a robust trading update for WHS in the current environment with slower sales being managed through margin control.</li><li>Red Sheds’ turn around continues to take longer than expected, partly due to volatile macro conditions, but its ongoing head office cost out programme, and improved performances from Blue Sheds and Noel Leeming appear to be offsetting the challenges in its largest business.</li></ul>

The Warehouse Group’s (WHS) 3Q26 sales were slightly softer than we had expected though this was offset by gross margin holding up better than we anticipated.Overall, we think this is a robust trading update for WHS in the current environment with slower sales being managed through margin control.Red Sheds’ turn around continues to take longer than expected, partly due to volatile macro conditions, but its ongoing head office cost out programme, and improved performances from Blue Sheds and Noel Leeming appear to be offsetting the challenges in its largest business.

The Warehouse Group (WHS) — 3Q26 Trading Update

Thematic (Sector/Industry)

<ul><li>Four NZ-listed retailers report in September against a backdrop that has deteriorated since the positive start to 2026.</li><li>The August ASX reporting season reinforced that the NZ retail recovery remains patchy, but not entirely bleak, with some operators (notably JB Hi-Fi) delivering strong growth in a challenged market.</li><li>Quality of execution has become more important over recent months, and our preference heading into reporting season is for quality operators—with strong balance sheets (Hallenstein Glassons [HLG]).</li></ul>

Four NZ-listed retailers report in September against a backdrop that has deteriorated since the positive start to 2026.The August ASX reporting season reinforced that the NZ retail recovery remains patchy, but not entirely bleak, with some operators (notably JB Hi-Fi) delivering strong growth in a challenged market.Quality of execution has become more important over recent months, and our preference heading into reporting season is for quality operators—with strong balance sheets (Hallenstein Glassons [HLG]).

Retail Sector: Checking Out Reporting Season

<ul><li>The Warehouse Group (WHS) reported an improved 1H26, underpinned by stronger cost control.</li><li>We are now confident that run-rate cost-out action to date and ongoing cost discipline should see the business return to a cost-of-doing-business (CODB) less than 31% of sales over the medium term.</li><li>However, we also come away from the result less confident in WHS’ 34% gross margin target, with Red Sheds in particular under significant gross margin pressure (down -110bp year-on-year).</li></ul>

The Warehouse Group (WHS) reported an improved 1H26, underpinned by stronger cost control.We are now confident that run-rate cost-out action to date and ongoing cost discipline should see the business return to a cost-of-doing-business (CODB) less than 31% of sales over the medium term.However, we also come away from the result less confident in WHS’ 34% gross margin target, with Red Sheds in particular under significant gross margin pressure (down -110bp year-on-year).

The Warehouse Group 1H26 Result—Getting The Whare In Order

New Zealand

The Warehouse Group Limited operates general merchandise and stationery supply retail stores throughout New Zealand.

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Warehouse Group Limited (WHS NZ)

Paragon REIT (PGNREIT SP)'s Privatisation Offer

Looks pretty clean. A 7% premium to NAV and a roughly two-year high. If payment on or around late May, I'd pay up to S$0.97/share for a gross...

David Blennerhassett

The Warehouse Group 3Q26 Trading Update—In The Red

The Warehouse Group (WHS) saw mixed performances across its businesses in 3Q26. The key disappointment was Red Sheds, which saw both sales and...

Forsyth Barr

The Warehouse Group (WHS) — 3Q26 Trading Update

The Warehouse Group’s (WHS) 3Q26 sales were slightly softer than we had expected though this was offset by gross margin holding up better than we...

Forsyth Barr

Retail Sector: Checking Out Reporting Season

Four NZ-listed retailers report in September against a backdrop that has deteriorated since the positive start to 2026. The August ASX reporting...

Forsyth Barr

The Warehouse Group 1H26 Result—Getting The Whare In Order

The Warehouse Group (WHS) reported an improved 1H26, underpinned by stronger cost control. We are now confident that run-rate cost-out action to...

Forsyth Barr

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