Saizen REIT

Saizen REIT

Postby winston » Wed May 14, 2008 8:23 am

Vested. From Phillips:-

Saizen REIT recorded gross revenue at JPY1,054.5 million (S$14.67 million1), and net property income at JPY 711.5 million (S$9.51 million), up 23.9% and 18.1% respectively from the previous quarter due to full contribution of portfolio properties.

Leasing activities and operations remained stable with occupancy rate rising from 89.4% as at 31 December 2007 to 92.7% as at 31 March 2008. Completion of acquisition of a property in Kumamoto with new source of financing.
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Re: Saizen REIT

Postby winston » Tue Jul 01, 2008 6:50 pm

Tokyo land prices rise 17.5%, nationwide 10%

TOKYO - Land prices in Tokyo rose 17.5 per cent last year in the biggest increase by far since Japan's bubble years, a government survey showed on Tuesday, although rural areas have yet to share in the recovery.

The rise in Tokyo property prices, which was the fourth straight year of increases, followed a 17 per cent rise in 2006, the tax agency said.

Led by the increase in Tokyo, average national land prices rose 10.0 per cent last year after an 8.6 per cent increase in 2006, marking the third straight year of increases, it said.

Property price growth outside of Tokyo was patchy, however.


Land prices in the central Japan city of Nagoya, close to the home of world's No 1 automaker Toyota Motor Corp rose 10.9 per cent, a bigger increase than 9.1 per cent in 2006.

But in Osaka, western Japan, property prices rose 7.4 per cent, a smaller increase than the previous year's 8.1 per cent, the tax agency said.

Property prices fell in 28 of Japan's 47 prefectures last year, the tax agency said.

Land prices in rural areas were flat last year, suggesting that the property boom in Tokyo has yet to spread broadly across the nation even as the economy shows signs of peaking.

Japan's economic recovery has boosted demand for office buildings and fuelled investment in real estate in big cities, with rapid rises in Tokyo's retail heart seen by some economists as driven by speculative investment.

But the economy is expected to have contracted in the second quarter of this year on slowing global growth and slack domestic demand.

Analysts say tighter global credit conditions after last year's US sub-prime mortgage loan crisis could also cool property investment.

Japan's land prices had dived since the early 1990s after the nation's asset price bubble burst, leaving a huge amount of bad loans in the banking sector and crippling the economy for a decade.

The National Tax Agency evaluates land prices as of Jan 1 every year to calculate property tax. It is among the several property surveys published by the government. -- REUTERS
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Re: Saizen REIT

Postby winston » Sat Jul 12, 2008 10:03 am

I've a very small position to follow their story. At first, I thought that Japanese Real Estate may rebound sharply. Not so sure anymore due to the Global Credit problem. However, it may not fall that much either..

==========================

BTW, I noticed that V-Nee Yeh has been consistently buying over the past few weeks. He now has 12.46%.

Please check the SGX website on the details of his transactions.
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Re: Saizen REIT

Postby ishak » Thu Jul 31, 2008 12:05 am

Coming result should be good, purely from the view of increased management fee.
New Payment: approx. $846K
Previous Payment: approx $302K


The Board of Directors of the Manager wishes to announce that the Manager has received its Management Fee for the period from 1 April 2008 to 30 June 2008 by way of 50% in cash and 50% in Units. In respect of payment in cash, the Manager has received an amount of JPY33,173,437 (about S$423,350). In respect of payment in Units, the Manager has, on 7 July 2008, received 576,224 Units issued at issue prices of between S$0.7073 and S$0.7585 per Unit. The issue price per Unit is the volume weighted average traded price for a Unit for all trades on Singapore Exchange Securities Trading Limited (“SGX-ST”) in the ordinary course of trading for the last ten (10) business days of the relevant periods in which the Management Fee accrued in April, May and June 2008 respectively.


The Board of Directors of the Manager wishes to announce that on 23 April 2008, the Manager has received its Management Fee for the period from 1 March 2008 to 31 March 2008 by way of cash and units. An amount of JPY11,335,065 (about S$150,512) was paid in cash, representing 50% of the Management Fee from 1 March 2008 to 31 March 2008, and 204,973 Units have been issued to the Manager at an issue price of S$0.7343 per Unit, representing the remaining 50% of the Management Fee. The issue price per Unit is the volume weighted average traded price for a Unit for all trades on Singapore Exchange Securities Trading Limited (the “SGX-ST”) in the ordinary course of trading for the last ten (10) business days of the relevant period in which the Management Fee accrued. In respect of the Japanese Yen and Singapore Dollar exchange rate, a ten (10) business-day average rate of JPY75.31 to S$1.00 as quoted on Bloomberg immediately preceding 23 April 2008 is applied.
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Re: Saizen REIT

Postby winston » Thu Aug 28, 2008 11:19 am

Vested.

Saizen Reit – Says it will hold out on new acquisitions for the present. Arnold Ip, chairman of the Reit manager, Japan Residential Assets Manager Ltd (JRAM) said JRAM intends to adopt a cautious approach for the time being to conserve cash and financial flexibility, and do not envisage acquisitions in the short term. He added that priority will be given to financial management.

The announcement came yesterday when it also announced that distributable income for the financial year ended 30 June 2008 was $22.13m. Distribution for the period is 4.67 cents per unit. At the time of listing, Saizen Reit had an initial portfolio of 147 residential rental properties in regional cities in Japan. This has since increased to 166 properties in 13 Japanese cities.

As at June 30, the Reit's portfolio was valued at $629.8m. Compared with FY'07, gross revenue in FY'08 increased by 87.2% due to the increase in number of properties over these periods. There were 101 and 166 properties respectively at the start and end of FY 2008, while there were 62 and 101 properties respectively at the start and end of FY 2007.

Net property income increased from $18.37m for FY'07 to $32.42m in FY'08. Based on the closing market price on August 26 of 50.5 cents per unit, the distribution yield was 9.2%.
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Re: Saizen REIT

Postby winston » Thu Aug 28, 2008 3:07 pm

Vested. From DMG:-

Saizen REIT: FY08 In Line With IPO Prospectus’ Forecast (Unrated\S$0.55)
Brandon Lee (62323891, [email protected])

Saizen REIT (SZR), a Japan-based residential REIT with 166 properties across 13 Japanese cities, posted FY08 DPU of S$0.0467, which was in line with its IPO prospectus’s stated forecasts. Topline jumped 87.2% YoY to JPY3.6b, mainly attributable to a 64.4% increase in the number of properties under management. However, on the back of property revaluation losses, one-time IPO expenses and forex losses, SZR posted a net loss of JPY3.7b, as compared to FY07’s net income of JPY2.1b.

Looking ahead for FY09, management foresees continued tightness within the credit markets, accompanied by a stifled Japanese real estate arena. Although the emergence of attractive investment opportunities cannot be ruled out, SZR should be placing emphasis on loan refinancing and establishment of banking relationships, in lieu of more acquisitions. As such,
we guess that FY09 DPU should remain flat, as any organic upside from improving its portfolio occupancy (currently 91.4%) could be mitigated by a spike in financing costs.

Along with the broad market sell-off, SZR has fallen 38.2% YTD, and its current unit price of S$0.55 is still a far cry from its IPO price of S$1.00. Based on SZR’s FY07 DPU of S$0.0467, it is currently trading at a yield of 8.5%, against a market-weighted 7.8% of S-REITs. At the moment, we do not have a rating for SZR, but the counter is under our SGX Scheme’s coverage of stocks.

Source: DMG & Partners Securities Pte Ltd
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Saizen REIT

Postby ishak » Fri Aug 29, 2008 5:38 pm

Saizen Reit's acquisitions on hold; distribution per unit is 4.67 cents
BT, August 28, 2008

SAIZEN Reit, which was listed on the Singapore Exchange in November last year, says it will hold out on new acquisitions for the present.

Arnold Ip, chairman of the Reit manager, Japan Residential Assets Manager Ltd (JRAM) said: 'While there are attractive investment opportunities for Saizen Reit, the manager intends to adopt a cautious approach for the time being to conserve cash and financial flexibility, and do not envisage acquisitions in the short term.'

He added that priority will be given to financial management.

The announcement came yesterday when it also announced that distributable income for the financial year ended 30 June 2008 was $22.13 million. Distribution for the period is 4.67 cents per unit.

At the time of listing, Saizen Reit had an initial portfolio of 147 residential rental properties in regional cities in Japan. This has since increased to 166 properties in 13 Japanese cities.

As at June 30, the Reit's portfolio was valued at $629.8 million.

Compared with FY'07, gross revenue in FY'08 increased by 87.2 per cent due to the increase in number of properties over these periods. There were 101 and 166 properties respectively at the start and end of FY 2008, while there were 62 and 101 properties respectively at the start and end of FY 2007.

Net property income increased from $18.37 million for FY'07 to $32.42 million in FY'08.

Saizen Reit did record a loss after income tax of $48.68 million in FY'08 compared with a profit of $26.86 million in FY'07. This was attributed to net depreciation in the value of investment properties of $59.8 million, one-off IPO expenses of about $10.5 million and exchange losses of around $4.2 million.

Based on the closing market price on August 26 of 50.5 cents per unit, the distribution yield was 9.2 per cent.

Raymond Wong, executive director of the Reit manager, noted that its share price had been beaten down recently - partly due to the downturn in the Japanese real estate market and news of the collapse of large Japanese developers like Urban Corporation.

But he pointed out the Reit had taken steps to strengthen its financial position to weather the next 12-months at least. 'While also affected by the credit crunch, Saizen Reit has maintained adequate resources to repay loans falling due within the next 12 months while keeping net gearing ratio at about 36.5 per cent,' he added.

To this end, Saizen Reit manager JRAM also announced yesterday an agreement with a European bank for a three-year term loan of $75.7 million collateralised by 38 existing properties.

Partial drawdown of the loan has taken place at a fixed interest rate of 2.67 per cent, representing a reduced rate compared with interest rate of the existing loan of 3.02 per cent.

At the operating level, occupancy rate stood at 91.4 per cent as at June 30 compared with 89.4 per cent as at December 31, 2007. Delinquency in rental collection is less than 0.03 per cent of revenue. Net property income yield is at approximately 6 per cent, providing Saizen Reit with an interest cover ratio of about 3.7 times based on its current level of borrowings.

Sean Pey Chang, CEO of the Reit manager, also said that it expects leasing activity and rental performance to be stable. Net property income in the quarter ended June 30 was $9.54 million, down marginally by 2.9 per cent from the previous quarter.

He also added that in the cities in which Saizen Reit is exposed, including Sapporo, Fukuoka and Kitakyushu, homeownership is only about 55 per cent.

Saizen Reit's rental properties are targeted at the mass market and average rents are about US$1-US$1.50 psf.

At the end of trading yesterday, Saizen Reit's unit price was 55 cents per unit, up 4.5 cents.
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Saizen REIT

Postby ishak » Tue Sep 09, 2008 12:19 pm

Surge in Japan real estate companies filing for bankruptcy
Bllomberg, 09 Sep 2008

The number of Japanese real estate companies filing for bankruptcy protection surged 23.5 per cent in August from a year earlier as banks choke off loans to the industry.

The number of developers filing for bankruptcy protection reached 42 last month, Tokyo Shoko Research Ltd, a credit research firm, said in a report yesterday.

The total number of bankruptcies rose to the highest for the month of August since 2003, gaining 4.2 per cent from a year earlier.

Liabilities at failed real estate companies more than doubled from July to 438.97 billion yen (S$5.8 billion), although they fell 24.9 per cent from a year earlier because of the bankruptcy a year ago of unlisted Azabu Tatemono KK with 564.8 billion yen of debt.

Accumulated debt by failed real estate companies accounted for half the total liabilities among all Japanese companies that went under in August.

Banks cut lending as growth in Japan's property market slowed and the collapse of the sub-prime market in the United States kept potential buyers from making acquisitions.

Japanese developers are also being squeezed by higher prices for steel and other raw materials used in construction, and by the government's revisions to building-approval regulations last June that delayed projects.

An accumulated total of 113 bankruptcy cases filed as of the end of August is related to stricter building codes, Tokyo Shoko Research said.

Loan growth at Japanese banks stalled for a second straight month in August, the Bank of Japan said yesterday, as the economy moved closer to recession.

Bankruptcies among real estate companies forced banks to cut earnings forecasts because of non-recoverable loans.

Urban Corp, Japan's seventh-largest developer by market value in 2006, on Aug 13 filed for bankruptcy protection with US$2.4 billion in debt, the biggest bankruptcy of a publicly traded company in Japan in six years, according to Bloomberg data.

Total employees affected by bankruptcies in August rose 42.9 per cent to 13,704, the highest this year.

Forty-two per cent of those affected were from the construction and real estate industries, Tokyo Shoko Research said.

The list of Japanese real estate companies filing for bankruptcy will grow this year, Takeo Higuchi, chairman of Daiwa House Industry Co, Japan's second-biggest home builder by market value, said on Aug 27.

Financial Services Minister Toshimitsu Motegi said on Sept 2 that Japan's government would urge the nation's so-called mega- banks and regional banks to lend more to small and mid-sized companies after July bankruptcy data rose to a record high.

The number of bankruptcies among real estate companies is likely to increase, regardless of what regulators say, said Junko Miyakawa, a credit analyst at Shinsei Securities Co.

'Default rates will probably continue to rise,' Mr Miyakawa said.

'No matter what the Financial Services Minister says, financial institution probably won't increase their loan exposure to small- and medium-sized companies.'
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Re: Saizen REIT

Postby winston » Thu Oct 02, 2008 1:26 pm

Capital Group reducing their position from 5.2462 % To 4.9203 % .
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Re: Saizen REIT

Postby winston » Fri Jan 02, 2009 4:25 pm

Saizen Reit has proposed a renounceable non-underwritten rights issue with free detachable and transferrable warrants in a bid to raise $44.75 million to pay off loans and fund its operations. The proposed rights issue is for up to 497.2 million new units in the trust at an issue price of nine cents each, on the basis of 11 rights units for every 10 units held, according to Saizen Reit manager Japan Residential Assets Manager (JRAM).

The free detachable and transferrable three-year warrant that comes with every rights share can be exercised at the same price. This means Saizen Reit will receive an additional $44.75 million if all 497.2 million warrants are exercised. In a regulatory filing on Wednesday, JRAM said that the rights issue price of nine cents represents a discount of 30.8 per cent to Saizen Reit's last-traded price of 13 cents on Wednesday.

The company plans to use the proceeds from the rights-cum-warrants issue to repay loans and for 'general operational purposes'. 'While operations of Saizen Reit have been stable, reflecting the underlying strength and resilience of its residential portfolio, lenders generally favour lower leverage under the current credit environment,' said Chang Sean Pey, chief executive officer of the manager.

Saizen Reit has 5.28 billion yen (S$82.8 million) in loans due in April this year, but said that it has sufficient cash to repay the amount. However, the trust has another 13.4 billion yen in loans that are set to mature in November and December.
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