Saizen REIT

Re: Saizen REIT

Postby winston » Sun Feb 16, 2014 7:32 pm

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Re: Saizen REIT

Postby winston » Mon May 12, 2014 10:04 am

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Continued currency headwinds drag down earnings.

Saizen REIT reported 3Q14 gross revenue and net property income 3.1% and 2.5% higher YoY respectively. The increase was due mainly to the acquisition of 4 properties from February - June 2013. Also, 3Q14 net property income was in line at 73.3% of our FY14 forecast. However, a fair value loss on currency derivatives of JPY99.2m (SGD 1.2m) dragged down 3Q14 earnings.

We highlight that for 1-year period from March 2013, the yen has weakened 9%. As a result, reported 9M14 earnings form only 67% of our FY14 forecast. There is no DPU this quarter due to the semi-annual distribution, with the next DPU to be paid in September.

Stable operations. Average occupancy rates remained stable at 91.1% in 3Q14 (2Q14: 90.6%; 3Q13: 92.2%), and rental reversions were lower by 0.7% from previously contracted rates (2Q14: -0.5%; 3Q13: -0.3%). In addition to its existing currency hedges, we note Saizen has also locked in a rate of 81.21 JPY/SGD for 1H15 via forward contracts, providing visibility for its FY15 DPUs.

Strategic review ongoing, watch for June 2014 announcement. Management indicated the strategic review of options to enhance unitholders’ value is at an advanced stage, and guided that they expect to announce the outcome of the review in the first half of June 2014.

As we noted on 13 February, possible options to be explored included the divestment of all assets, acquiring additional assets to achieve greater mass, or seeking an equity listing in Japan and returning existing cash balances to unitholders.

Maintain HOLD with eye on review results, TP $0.95. We revise our FY14 DPU down 2.1% to 6.35c on continued yen weakness as the JPY/SGD exchange rate has hovered around 81 from April 2014 til date.

Accordingly, we lower our TP by 1c to $0.95. However, Saizen continues to trade at 0.8x book value, and we expect the outcome of the strategic review to be positive for shareholders.


Source: AmFraser
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Re: Saizen REIT

Postby winston » Sun May 18, 2014 8:00 pm

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Re: Saizen REIT

Postby winston » Mon May 26, 2014 8:46 pm

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Time: 10:08AM
Exchange: SGX
Stock: Saizen Reit(T8JU)
Signal: Resistance - Breakout with High Volume
Last Done: $0.94

Source: UOBKH
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Re: Saizen REIT

Postby winston » Tue May 27, 2014 7:07 pm

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Time: 12:03PM
Exchange: SGX
Stock: Saizen Reit(T8JU)
Signal: Resistance - Breakout with High Volume
Last Done: $0.965

Source: UOBKH
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Re: Saizen REIT

Postby winston » Tue Jun 10, 2014 12:46 pm

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Saizen Reit (S$0.965)

Completes strategic review

Saizen Reit will focus on cash management and debt levels after completing a strategic review.

It may consider buying back units "at times of unit price weakness", it said.

Source: The Business Times
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Re: Saizen REIT

Postby winston » Wed Aug 27, 2014 4:24 pm

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Time: 8:58AM
Exchange: SGX
Stock: Saizen Reit(T8JU)
Signal: Bullish MACD Crossover
Last Done: $0.96

Source: UOBKH
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Re: Saizen REIT

Postby winston » Thu Aug 28, 2014 9:36 am

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Results in line.

Saizen REIT’s 4Q14 gross revenue and net property income were 0.6% lower YoY respectively. For the full year, gross revenue and net property income were up 3.4% and 2.6% YoY respectively, and formed 99.8% and 99.2% of our forecasts respectively.

A distribution of 3.1 Scts was announced and will be paid on 26 September 2014.

For FY14, the distribution was 6.35 Scts, or 99% of our FY14 forecast.

Currency weakness drags down total return despite operational resilience. Despite net income from operations forming 98.7% of our forecast, total return for the period was only 91.5% of our FY14 forecast.

Saizen reported JPY67.2m (S$0.8m) of fair value losses on currency derivatives in 4Q14; for the full year, this loss was JPY189.6m (S$2.3m). Although the yen has continued to weaken since 3Q14, Saizen has locked in a rate of 81.9 JPYSGD for the 6-month period ending December 2014, which should partially mitigate this effect on distributions.

Stable operations. Average occupancy rates remained stable at 91.0% in 4Q14 (3Q14: 91.1%, 2Q14: 90.6%), and rental reversions were lower by 0.5% from previously contracted rates (3Q14: -0.5%; FY13: -0.5%).

Strategic review outcome: gear up and buy. The outcome of the strategic review was announced in June 2014. We think Saizen is likely to gear up to capitalise on the trend of compressing cap rates in Japan as the Bank of Japan’s quantitative easing progresses. We estimate JPY4bn of debt headroom should Saizen gear up to 45% of its total assets. This is enough for sizeable additions to its portfolio similar to FY13, when Saizen spent JPY4.2bn to acquire 10 properties.

Maintain HOLD with anticipated acquisitions, FV $0.97. We pencil in JPY3bn of acquisitions over FY15, which raises our FV by 2 Sct to $0.97. However, we think that with the 5% run-up in Saizen’s share price since 3Q14 and continued albeit diminishing yen headwinds, the total return for investors is limited at 7.9%.

Source: AmFraser
It's all about "how much you made when you were right" & "how little you lost when you were wrong"
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Re: Saizen REIT

Postby winston » Sat Sep 13, 2014 9:01 am

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Time: 2:51PM
Exchange: SGX
Stock: Saizen Reit(T8JU)
Signal: Resistance - Breakout with High Volume
Last Done: $0.935

Source: UOBKH
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Re: Saizen REIT

Postby winston » Sun Nov 09, 2014 1:51 pm

Could Abenomics Boost Value At Saizen REIT?

Which companies could benefit from a revival in Japan’s economy?

By Adam Kuo

The Singapore Stock Exchange is home to a handful of companies with business in Japan. In fact, eight have a market capitalisation of more than S$100m and report more than one fifth of their revenues from The Land of the Rising Sun.

Japan suffered two decades of suspended animation, which prompted Prime Minister Shinzo Abe to find new ways to stimulate the economy. His scheme has been dubbed “Abenomics”. It is based around three separate growth strategies: fiscal stimulus, monetary reform and structural reforms.

Recently, the Bank of Japan announced that it would pump more money into the economy to boost domestic activity. Interestingly, this coincided with the US Federal reserve ending its own asset buying program. So as one country shut down its printing press another has fire one up.

If Abenomics is successful, it is possible that companies exposed to Japan, could benefit. However, macroeconomic events should not sway value investors. Instead, value investors should focus on the fundamentals of the business.

Of the eight Japan-connected companies, six pay dividends. Of those eight, the payouts on offer come from Mapletree Logistics Trust (SGX: M44U) and Saizen Real Estate Investment Trust (SGX: DZ8U), with dividend yields of 6.5% and 6.9% respectively.

Both companies are priced close to their book values, with Mapletree trading at a 10% premium. [b][b]Saizen trades at a 20% discount, [/b][/b]which could make it more attractive from a margin of safety perspective.

However, both companies trade at high earnings multiples of 20. This is quite some way above the market average of 14.

At present the companies do not tick all the necessary boxes that a value investor would like to see. But they could be worth keeping an eye on.

This is particularly true of Saizen. If the latest round of monetary stimulus has the desired effect on the Japanese economy, namely, increased consumer spending and higher consumer confidence, then commercial REITs could stand to benefit. Saizen could be one to watch.

Source: Motley Fool Singapore
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