Saizen REIT: A retest of resistance at 18c?

On two occasions in the past, I did not partially divest my investment in Saizen REIT as its unit price touched a high of 18c. It was due to a belief that it remained undervalued even at that price. Yesterday, Saizen REIT's unit price broke resistance at 16.8c while it touched a high of 17.7c before closing at 17.4c today. Could we see 18c again soon?




The lower highs on the MACD and the

Sabana REIT: Convertible Sukuk.

Some time back, I wrote about how perpetual bonds could be a good thing for REITs if they could use the funds raised to acquire yield accretive properties. Imagine borrowing at a lower interest rate to invest in a property with a NPI yield higher than the cost of debt. This is good news for existing unitholders.





Sabana REIT has announced a Convertible Sukuk which will raise S$80m. What is

Tea with AK71: Tonkatsu, Saizen REIT, Mazda cars.

Many things happened in my life lately. Some good and some bad. Well, mostly bad, I feel. Anyway, all I can do is to soldier on and roll with the punches. Take the good with the bad.

Today, after going out in the morning for an extended family gathering, I detoured to Orchard Road to take in the sights and have lunch at a tonkatsu place in the basement of Ion Orchard which my sister brought me

Saizen REIT: 2H FY2012.

Thanks to its recent acquisitive activities, paying down of its loans and a strong JPY, Saizen REIT is able to declare a higher DPU of 0.63c for 2H FY2012. This is payable on 18 Sep.

Therefore, the expected reduction in DPU of 10+% with the conversion of its warrants did not materialise and Mr. Market has shown his approval in the usual way as unit price of the REIT climbed higher today.

Saizen REIT: Beefing up distributable income.

Saizen REIT has been adding apartment buildings to its portfolio since resolving the CMBS for YK Shintoku. This will go some way to ameliorating the expected decline in DPU due to warrants exercised earlier.





Since my blog post of 26 May 2012, Saizen REIT's unit price has been rising gradually, hitting a high of 16c just two sessions ago. Mr. Market has recovered from his anxiety and is

Croesus Retail Trust.

"Croesus Retail Trust is planning a Singapore initial public offering of about $800 million (US$634.22 million), backed by mainly Japanese assets, IFR reported on Wednesday."




It is an interesting choice of name. Croesus was the wealthy King of Lydia (part of modern day Turkey) and in Greek culture, the name is synonymous with a wealthy man. Would the REIT live up to its name?

Although I find

Market gyrations, my portfolio and a sabbatical.

My investments in S-REITs are holding up nicely which gives credence to my strategy to overweight S-REITs in my portfolio. Their relative price stability and high distribution yields provide some solace in a volatile market.

A brief look at some of my larger investments in S-REITs:

1. AIMS AMP Capital Industrial REIT closed at $1.20 per unit. My cost per unit ranges from $0.775 to $1.10.

2.

Saizen REIT: Insiders are accumulating again.

I read this in The Business Times just last evening:


CEO, Chang Sean Pey and executive director, Raymond Wong, acquired units in Saizen REIT this month with a combined 602,000 units purchased from 4 to 7 June at 14 cents each.

This is the CEO's first on-market trade since September 2011. The CEO now holds 3.65 million units or 0.26%. He acquired 2.02m units from March 2009 to September 2011 at

Saizen REIT: Why did I buy and would I buy more?

There are so many ways to look at an event.  Some might look at it positively and some might look at it negatively. Some might jump for joy and some might break out in cold sweat.

All of us have imperfect knowledge and what we think is reality very often is enough to push us into action. Of course, what we think is reality might not be reality and those who are eventually proven right might

Saizen REIT: To buy or not to buy?

Regular readers would know my whole story with Saizen REIT. I remain invested in the REIT for various reasons which I believe are still valid.



This blog post is to answer a question which I have received from readers, friends and family alike. Is it a good time to buy more units of Saizen REIT?

This is a question which I would avoid giving a direct answer to. There is a great deal of

Saizen REIT: Acquisitions to increase DPU.

To me, there are only a few important points to note in the REIT's latest presentation:



1. Management is on an acquisition path as this is probably the only way to increase DPU as it seems difficult to bump up occupancy of existing portfolio. Occupancy: 91.6%.

2. Potential dilution of DPU to the tune of 12% as warrants are exercised (if funds thus obtained are not put to productive use).

3.

Saizen REIT: 1H FY2012 DPU of 0.61c.

The strong JPY is a boon for Saizen REIT unitholders as it lifted distributable income in S$ terms as well as the NAV per unit.



A DPU of 0.61c has been declared for 1H FY2012 and is payable on 6 March 2012. At a unit price of 15c, this represents an annualised distribution yield of 8.1% which is not bad at all.

NAV per unit stands at 35c.

I continue to like the fact that Saizen REIT owns

Saizen REIT: Acquisitions and long term loans.

Although I divested a large part of my investment in Saizen REIT, I still like the idea of owning freehold residential real estate in Japan where two thirds of its population rent the homes they stay in.


The Japanese Yen has strengthened against the S$ quite a bit and this could translate to higher income distribution in 2012 for unitholders. Add YK Shintoku's contribution to income

Saizen REIT: Full Year 2011 results.

I have not blogged about Saizen REIT for some time now because there is nothing really significant to analyse after its CMBS for YK Shintoku was successfully paid up a few months ago.


I divested my investment in the REIT partially when its unit price rebounded after hitting a low in the aftermath of the triple disaster of earthquake, tsunami and nuclear crisis in March this year. This is

Mr. Market is always right.

I blogged about my partial divestment of Saizen REIT as price gap closed at 15c. I still retain more than 10% of my original investment in the REIT. See blog post here.

As Saizen REIT was the largest investment in my portfolio, making up some 40% of total funds invested (excluding funds in my frozen portfolio), the amount of money released was no small change. Leaving the money in the bank was

Saizen REIT and Sabana REIT.

Moody’s Investors Service has upgraded Saizen REIT’s corporate family rating to B1 from Caa1 following the conclusion of their rating review.

The stable outlook reflects Saizen REIT's improved liquidity and the absence of material refinancing needs in the next two years.

Read announcement here.


Sabana Real Estate Investment Management Pte. Ltd., the Manager of Sabana Shari’ah Compliant

Of primates and their diet!

The title of this blog post belies the gravity of the subject on hand. Before we go into the subject proper, a bit of background information is necessary for the uninitiated.


Some might know of an infamous cbox owned by LP, the blogmaster of Bully the Bear. LP is a very decent sort of chap and is always concerned about people, having their best interests at heart. LP is also G.O.D. (Gorilla of

Saizen REIT: YK Shintoku's CMBS repaid.

The Board of Directors of Japan Residential Assets Manager Limited, the manager (the “Manager”) of Saizen Real Estate Investment Trust ("Saizen REIT"), is pleased to announce that the loan of YK Shintoku had been fully repaid on 31 May 2011 (the “Repayment”).
Following the completion of the Repayment and the cancellation of the mortgage over YK Shintoku’s property portfolio, YK Shintoku’s

Saizen REIT: 3Q FY2011 results.

(Something is wrong with Blogger. This blog post appeared on 13 May 2011, not 15 May 2011.)

As expected, YK Shintoku's CMBS is to be fully repaid very soon by end of May 2011. The repayment is funded by the REIT's internal cash resources (including proceeds from the exercise of warrants) and proceeds from the divestment of properties. It is expected that the operational cashflow from YK