Daily Brief Financials: Mori Hills REIT Investment Corporation, Centurion Accomodation REIT, Shengjing Bank Co Ltd H, HDFC Bank, Capitaland Integrated Commercial Trust, Citizens Financial, Bank Of America, Wells Fargo & Co, Cantaloupe and more

• In the past 24 months, J-REIT sponsors have bought units in their REITs at sharp discounts to PNAV to raise PNAV and reduce overhang pressure. 
• The goal is, basically transparently, to get PNAV to a level at which the REIT can buy more properties from the sponsor, who carries them at a much higher WACC.
• Mori Building has announced a 4.99% buy on Mori Hills REIT Investment Corporation (3234 JP) which is a Very Big portion of Max Real World Float. This should influence price.

• Centurion Accomodation REIT (CAREIT SP) (CAREIT) plans to raise around US$600m in its Singapore listing.
• CAREIT plans to invest directly or indirectly, in a portfolio of purpose-built worker accommodation (PBWA), purpose-built student accommodation (PBSA) or other accommodation, located globally (excluding Malaysia).
• We have looked at the company’s past performance in our previous note. In this note, we talk about valuations.

• On 12 September, Shenyang SASAC increased its Shengjing Bank Co Ltd H (2066 HK) offer by 21.2% from HK$1.32 to HK$1.60. The IFA opines it is fair and reasonable.
• The revised terms should ensure the support of key shareholders. However, the IFA analysis is flawed, and the revised offer is light.
• While the 21 October vote on the delisting proposal should pass, the satisfaction of the minimum acceptance condition (90% of independent H shares) poses a challenge. 

• Centurion Accomodation REIT (CAREIT SP) is the exclusive S-REIT vehicle sponsored by Centurion Corp (CENT SP). It is seeking to raise up to US$600 million in an SGX IPO. 
• The Initial Portfolio will comprise 14 assets, with five PBWA assets located in Singapore, eight PBSA assets located in the United Kingdom, and one PBSA asset located in Australia.
• Centurion Accommodation REIT offers an attractive value proposition due to its structural demand drivers, diversified portfolio, high occupancy rates, growth opportunities, and sizable debt headroom.

• HDFC Bank (HDFCB IN) has been in a mild pullback since the end of July. The stock closed up for 2 weeks but has not reached any significative overbought level.
• This week HDFC Bank went down a bit, stayed above the Q1 support level but this pattern is very bullish, in the past it gave way to long, profitable rallies.
• We cannot say for sure if the stock will rally up from here, but if it does, consider profit targets north of 1034 (Q3), and it could rally higher.

• The Singapore’s interest rate, 3M SORA, has declined steeply from 3.034% in January to 1.563% in September
• The steep decline in interest rate will directly benefit S-REITs, through reduced borrow cost, more attractive valuation, as well as stabilizing cap rates to support book valuation
• Among S-REITs, we think CICT SP, with its portfolio mostly Singapore assets, will benefit the most from this structural trend

• Citizens Financial Group reported its second quarter 2025 results, showcasing several financial highlights and strategic initiatives that reflect its current operational state and future outlook.
• The company experienced a 3.3% increase in net interest income (NII) quarter-over-quarter, mainly driven by a net interest margin (NIM) expansion of 5 basis points to 2.95%.
• There was also notable fee income growth of 10% linked quarter, paced by wealth management, card, and mortgage operations.

• Bank of America Corporation reported robust second-quarter results that highlight strong organic growth across its varied business segments.
• The bank saw a 4% year-over-year increase in revenue, reaching $26.6 billion, alongside a 7% growth in net income to $7.1 billion.
• Earnings per share increased by 7%, reflecting effective cost management and growth strategies.

• Wells Fargo & Company, in its second quarter of 2025 results, showcased a balanced mix of progression in growth strategies and sustained financial discipline.
• The net income of $5.5 billion, translating to $1.60 per diluted share, was an improvement from both the previous quarter and the same period last year.
• This growth indicates consistent execution amidst a transitioning phase post asset cap removal.

Key points (machine generated)

• CTLPP is trading at $54.00, linked to a merger with 365 Retail Markets backed by Providence Equity.
• The preferred stock will pay $62.15 per share in cash, indicating a potential 15% return in a few months.
• The merger’s stability is supported by a strong buyer and formal documentation, ensuring secure treatment of the preferred stock.

This article is sourced from an online content aggregator through publicly available sources and is displayed below for general informational purposes only. This article was originally published 3 months ago on Value Investors Club.