In today’s briefing:
- ASX100/200/300 Index Rebalance Preview (March 2022): A Lot Happening From Now to March
- TOPIX-Nikkei Skew Trade Looking Increasingly Juicy
- Nippon Building Fund (8951) – Calculating Passive Tracking of J-REITs and Index Events Around Offers
- ARA Logos (ALLT SP): Scheme Doc Out. Meeting On 27 Jan
- Nippon Building Fund (8951): Offering Could Trigger Outperformance Vs TSEREIT Index
- Comforia Residential REIT (3282 JP): Offering Could Trigger Outperformance Vs Comps
ASX100/200/300 Index Rebalance Preview (March 2022): A Lot Happening From Now to March
- There could be 2 changes to the ASX100 and ASX200 prior to the March rebalance due to the acquisitions of Ausnet Services (AST AU) and Sydney Airport (SYD AU).
- There will also be the large BHP Group (BHP AU) upweight and funding trade following unification, and possibly the Afterpay Touch (APT AU) acquisition by Square Inc (SQ US).
- Then there will be more changes to the ASX200 and ASX300 at the March rebalance. There could be a lot of new listings included in the ASX300.
TOPIX-Nikkei Skew Trade Looking Increasingly Juicy
- Our suggested TOPIX-Nikkei skew trade continues to grind out positive returns with relatively low volatility.
- With Nikkei starting to noticeably underperform over the last few days we believe faster outperformance could be ahead.
- In particular we believe two of the worst performing legs here could start to contribute.
Nippon Building Fund (8951) – Calculating Passive Tracking of J-REITs and Index Events Around Offers
- 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.
ARA Logos (ALLT SP): Scheme Doc Out. Meeting On 27 Jan
- The Scheme Document for the S$1.4bn ESR-REIT (EREIT SP)/ ARA LOGOS (ALLT SP) merger has now been dispatched.
- The Scheme Meeting will take place on the 27 January with the expected date for the payment of the Cash Consideration and issuance of Consideration Units on the 28 February.
- The IFA (ING Bank) considered the terms of the Scheme to be fair and reasonable.
Nippon Building Fund (8951): Offering Could Trigger Outperformance Vs TSEREIT Index
- Today after the close, Nippon Building Fund (8951 JP)(“NBF”) 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 2,500 units. The total size of this offering could be roughly ¥33bn (~US$285mn).
- 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.
Comforia Residential REIT (3282 JP): Offering Could Trigger Outperformance Vs Comps
- Yesterday after the close, Comforia Residential REIT (3282 JP) (“CRR”) announced a follow-on equity offering to fund part of their recently announced property acquisition.
- The primary offer quantity is 22,960 units. In addition, there will also be an over-allotment quantity of 1,140 units. The total size of this offering could be roughly ¥7.4bn (~US$64mn).
- Below, we take a look at the attractiveness of CRR’s latest offering with greater emphasis on the potential for strong post-offering secondary market performance.
Before it’s here, it’s on Smartkarma
