Saizen REIT

Re: Saizen REIT

Postby winston » Tue Nov 25, 2014 11:06 am

not vested

Japanese properties to hog the limelight

Distributable income in line with expectation. Saizen’s 1Q15 net income of JPY435.4m was 10% above our expectation, however, after adjusting non-cash items, distributable income of JPY378.9m was fairly in line with our expectation.

Raising fair value. We keep our FY15-17 forecasts relatively unchanged. However, we change our DDM model back to its basic valuation method, we are using a 0.9x FY15 PBR now, we believe this method is conservative and justifies a 10% discount to its book value, given its accumulated JPY13bn loss in net fair value since IPO was mainly due to its assets being hit by the financial crisis in 2008 and 2009.

Nevertheless, this trend has been reversing and its assets have appreciated in the past 3 years. As a result, our fair value has increased from S$1.03 to S$1.07. Though a weakening Japanese Yen remains a concern, this will be mitigated by its stable income and potential appreciation of its assets. Given the potential 20% upside with 6-7% dividend yield projection, maintain Overweight rating.

Japan’s GDP unexpectedly shrank in Q3. Last week, Japan announced that 3Q GDP unexpectedly contracted 0.4% on the quarter, after a 1.9% contraction in the previous quarter. Economists had expected a quarterly rise of 0.5% and a 2.1% annual growth rate. According to Japan’s Economics Minister Amari, the biggest reasons for the drop in GDP may have been inventory adjustments, a decline in consumer confidence, and bad weather.

We believe it is still too early to conclude the end of Abenomics given that steps are needed to reduce any negative impact on consumers from the increase in sales tax from 5% to 8% in April. On the other hand, we believe Japan's output will benefit from the recent sharp decline in the yen.

Japan’s properties are being snapped up by foreign investors. Recently, the Blackstone Group agreed to buy GE Japan Corp.’s residential-property business for more than JPY190bn to expand its apartment holdings in Japan. Last month, Singapore’s GIC put US$1.7bn into Tokyo commercial real estate and City Developments has acquired a JPY30.5bn historical site in Tokyo as it steps up expansion plans overseas.

1Q15 gross revenue remains stable at JPY974m. Net property income margins declined slightly by 1.5% pts to 69.4% as average occupancy rate decreased from 91.2% in 1Q14 to 90.1%.

Healthy balance sheet. Saizen’s net gearing inched up from 30% in 4Q14 to 30.5% mainly due to 2 new loans obtained. Recently, MAS has released the new ruling for REITs, allowing for an increase in gearing level from 38% to between 40% and 45%, these should provide headroom for loans growth and acquisition.

Source: NRA
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Re: Saizen REIT

Postby winston » Thu Feb 12, 2015 4:46 am

not vested

Sazen REIT has declared a distribution of 3.10 Singapore cents per Unit for the 1H financial period ended 31 December 2014.

The decrease of 4.6% in the DPU for YTD Dec 2014 was mainly due to lower net property income, predominantly in 1Q and the depreciation of the JPY against the S$.

KGI’s take: The DPU is in‐line with the previous DPU for Jan‐Jun 2014. However, we may see a lower DPU payout for the next six‐month results when the current JPY hedge falls off.

Source: The Business Times
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Re: Saizen REIT

Postby winston » Tue Aug 16, 2016 7:41 am

not vested

Sime Darby launches reverse takeover of Saizen REIT

BY JOSEPH CHIN

KUALA LUMPUR: Sime Darby Bhd plans to develop a real estate investment trust (REIT) to generate resilient and recurring income stream, starting with the reverse takeover of Saizen REIT.

The conglomerate said on Monday the REIT platform is expected to have greater flexibility in its future fund-raising exercises to build a sizeable international portfolio of assets, which Sime Darby will benefit from its direct stake in Saizen REIT.

Sime Darby said its indirect units Hastings Deering (Australia) Ltd and Sime Darby Property Singapore Ltd (SDPSL) had signed a framework agreement with Japan Residential Assets Manager Ltd (JRAM), the manager of Saizen REIT, for the properties disposal.

Under the agreement, Hastings Deering would sell some of its industrial properties in Australia to Saizen REIT in return for new units in Saizen REIT as part of the reverse takeover of Saizen REIT by SDPSL.

This would also hinge on the completion of the distribution of up to 9.87 Singapore cents (29.42 sen) per unit to the unitholders prior to the issuance of the new Saizen REIT units a Sime Darby said the consideration for the JRAM acquisition would be 80% of the net assets (NA) of JRAM and US$1mil.

“In addition, the proposals would enable Sime Darby to monetise the properties, on which Hastings Deering will continue its operations under the master lease, while de-leveraging its balance sheet. This will further allow Sime Darby to re-allocate capital and drive continuous improvements in financial and operational efficiency,” it said.

Source: The Star
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