Listed Real Estate Asia, KT Capital Group

Jacob Cheng

Jacob has 7 years of professional buy-side experience in real estate investment and listed equities.  Jacob worked as a portfolio manager/analyst in Global Listed Real Estate team in AMP Capital and Macquarie Asset Management.  Prior to that, Jacob has spent 5 years in APG asset management, in the listed real estate team.  As one of the largest RE funds in Asia, he co-managed EUR6bn investment portfolio with the team with a focus on Hong Kong and China property.  He led the USD200m cornerstone investment in Wanda Commercial Properties IPO (the largest mall operator and developer in China).  Prior to this, Jacob has 3 years of experience in investment banking in Bank of America Merrill Lynch, covering equity, debt and M&A transactions across real estate, consumer& retail and TMT sectors.  Jacob specializes in fundamental bottom up research.  Aside from work, Jacob has a personal interest in spirituality and personal development.  He practiced meditation and has published a book about meaning of life in 2016.

Listed Real Estate Asia

KT Capital Group

Principal investments and advisory firm that focuses on connecting the CIS countries with East Asia.

Principal investments and advisory firm

Equity Bottom-Up

ESR Kendall Square REIT / Equity Bottom-Up

<ul>
<li>Despite having strong operational performances, we think ESR KS REIT is currently facing 2 headwinds, 1 structural issue and 1 cyclical issue</li>
<li>Korea listed companies are generally suffering from under-valuation and excessive equity raise.  The equity raises, which are done at discount to NAV, is value destructive</li>
<li>In the physical market, we think the logistics market is facing oversupply issue, slow absorption and protected recovery.</li>
</ul>


Despite having strong operational performances, we think ESR KS REIT is currently facing 2 headwinds, 1 structural issue and 1 cyclical issue
Korea listed companies are generally suffering from under-valuation and excessive equity raise.  The equity raises, which are done at discount to NAV, is value destructive
In the physical market, we think the logistics market is facing oversupply issue, slow absorption and protected recovery.


SHORT ESR Kendall Square REIT: Korea Logistics Oversupply & K-REIT Funding