Index Rebal Trades & Special Situations, Quiddity Advisors

Janaghan Jeyakumar, CFA

Equity Analyst with 10+ years experience in fundamental and event-driven research.

On Smartkarma, I mainly publish insights on index flow events. This includes predicting regular and intra-review index changes and formulating market-neutral trading strategies based on flow catalysts. I also cover special situations such as mergers & acquisitions, equity offerings, buybacks, and other corporate restructuring events.

Index Rebal Trades & Special Situations

J-REIT Offering Primer: Get Ready for Offering Season 2021

Quiddity Advisors

Pan-Asia Catalysts/Events

Event-Driven

NTT UD REIT Investment Corporation / Event-Driven

NTT UD REIT Investment Corporation (8956 JP)

<a href="https://www.smartkarma.com/entities/premier-investment-corp" target="_blank" data-smartkarma-citation="entities:19428:1" rel="noopener">NTT UD REIT (8956 JP)</a> ("NUR") announced a follow-on equity offering after market close on 18th October 2021 to fund part of their recent property acquisition. The primary offer quantity is 80,600 units. In addition, there will also be an over-allotment quantity of 4,040 units. The total size of this offering could be roughly ¥12bn (~US$105mn). 
On average,  J-REITs have historically outperformed the TSEREIT Index in the wake of follow-on equity offerings, with win rates exceeding 80%. While JREIT offerings are mostly of interest to primary market investors, we also see such offerings as potential catalysts for strong secondary market performance making these events worth tracking for secondary market investors too. We have previously discussed the historical pre- and post-offering performance of JREITs in <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>.
Below, we take a look at the attractiveness of NUR's latest offering with greater emphasis on the potential for strong post-offering secondary market performance.

NTT UD REIT (8956 JP) ("NUR") announced a follow-on equity offering after market close on 18th October 2021 to fund part of their recent property acquisition. The primary offer quantity is 80,600 units. In addition, there will also be an over-allotment quantity of 4,040 units. The total size of this offering could be roughly ¥12bn (~US$105mn). 
On average,  J-REITs have historically outperformed the TSEREIT Index in the wake of follow-on equity offerings, with win rates exceeding 80%. While JREIT offerings are mostly of interest to primary market investors, we also see such offerings as potential catalysts for strong secondary market performance making these events worth tracking for secondary market investors too. We have previously discussed the historical pre- and post-offering performance of JREITs in J-REIT Offering Primer: Get Ready for Offering Season 2021.
Below, we take a look at the attractiveness of NUR's latest offering with greater emphasis on the potential for strong post-offering secondary market performance. 

NTT UD REIT (8956 JP): Offering Could Be Catalyst for Outperformance Vs TSEREIT Index