Loaded some Saizen Warrant at $0.07 yesterday. Personally i feel that this is attractive as compare to the mother share which is trading at $0.16. Exercise price is $0.09 which means the warrant is trading without Premium. So this provides a very good leverage given that the warrant expires only in June 2012. Most REIT has been re-rated with several of them traded at close to NAV value or even premium to NAV value as in the case of PLIFE, AREIT, K-REIT, FrasersCT, etc... Saizen is trading at only 0.4x P/Bk ratio because of the YK Shintoku loan issue. I believe that Saizen trust should be re-rated at the later half of the year when i start to pay out dividend again. So far management and insiders has been very consistent in buying more shares.
www.nextinsight.net/content/view/1575/60/CEO just brought another 100,000 shares on 27th Jan 2010. Quarterly result to be released on the 11th Feb 2010... Counting down....From its announcement 25th Jan 2010 The loans of YK Kokkei and YK Shingen have been fully repaid. We are pleased to announce that pursuant to an agreement between YK Keizan and its lender on 25 January 2010, the YK Keizan Loan has been amended. As a result, YK Keizan shall first repay JPY 950.0 million (S$14.8 million) in January 2010, while the balance of JPY 586.25 million(S$9.1 million) shall be repaid on 25 April 2010. The interest rate remains unchanged at 3.63% per annum. It is expected that the balance of the YK Keizan Loan can be fully repaid in April 2010 with internal cash resources. As previously announced, it is expected that Saizen REIT will start accumulating cash for distribution in the last quarter (April 2010 to June 2010) of the current financial year ending 30 June 2010, and will resume distribution for the current financial year
Many value investors I know have been buying Saizen wrt. No question that it is a good choice over the mother shares, esp when the outlook is that the mother will move up when dividends start flowing again. But.... the issue that is not clear is how much dividend. aCcording to my neighbour;\'s estiamte, the yield is not exciting at about 6%. erelation, what is yr estimate?
Saizen REIT will be presenting its results on 11 Feb, just before the Chinese New Year. That gels with my chart reading on a probable breakout timing on the upside. A narrowing of the Bollinger bands gives some credence to this reading as well. Initial breakout targets remain at 19c and 21c for now.
Hi Harlequin, My guess is that dividend yield should be in the range of 9% to 12% based on its current distributable income as well as reduction in loan interest after paying down some of its CMBS loan. The 6% yield seems to be too low. I guess your neighbour might have taken into consideration of the non-cash charges? Regards erelation