Saizen REIT is in an obvious uptrend channel. The closing in of the 100dMA and 200dMA indicates the formation of a stronger support level at 15c thereabouts. It also suggests a lack of volatility in the longer term. Thin trading volume as price goes sideways usually means more downward bias. However, given the trend of the longer term MAs, the downside is very limited from current levels. Any upward push in price will meet with initial resistance at 17c and if this is overcome, the recent high of 18c might be tested. I would accumulate on dips.
Good News for Saizen..... Tokyo flat rents close to bottoming out: data (Tokyo) THE pace of decline in Tokyo apartment rental prices slowed in December for the first time since the global financial crisis hit, research data showed, suggesting Japan\'s beleaguered property market is close to bottoming out. \'(Tokyo) apartment rents have fallen so much since the Lehman Brothers shock that they are now reaching the point where landlords are reluctant to make further reductions,\' said Tomoyo Dosaka, a consultant at the real estate marketing firm that conducted the research, Attractors Lab. Apartments in the Japanese capital with monthly rents over 200,000 yen (S$3,079) were leased out in December at 7.8 per cent less than two years ago, Attractors Lab said, using an average rental term of two years. That compares with an 8.9 per cent decline in rents on high-end properties in November from two years previously, the largest ever drop. \'If you are looking for a rental apartment, then it might be difficult to seek further reductions from current levels, especially for upmarket rooms,\' the Attractors Lab consultant said. Flats with monthly rents of up to 200,000 yen fell an average 1.9 per cent in December, down from 2.2 per cent the month before. The slowdown in the rate of rental decline is the first since the banking and credit crisis unfolded with the collapse of Lehman Brothers in September 2009. The \'Lehman shock\' forced foreign players to pull back from Japanese property investing, leaving behind a growing pile of distressed assets, prompting a sharp fall in land prices. -- Reuters
Even though Saizen REIT does not own any apartment buildings in Tokyo, this is good news anyway. My decision to accumulate Saizen REIT from 13c to the current price is informed by a thorough FA with the understanding that it is terribly undervalued. Even if the REIT\'s portfolio of YK Shintoku were to be foreclosed and even after all the warrants are converted into regular units, Saizen REIT would still have a NAV of 29c per unit.
Good news.... The Board of Directors of Japan Residential Assets Manager Limited, the manager (Ã¢â¬ÅManagerÃ¢â¬Â) of Saizen Real Estate Investment Trust (Ã¢â¬ÅSaizen REITÃ¢â¬Â), wishes to announce that Yugen Kaisha Shinzan (Ã¢â¬ÅYK ShinzanÃ¢â¬Â), a TK operator of Saizen REIT, has entered into an agreement dated 16 March 2010 (the Ã¢â¬ÅLoan AgreementÃ¢â¬Â) for a JPY 2.0 billion (S$30.8million1) loan (the Ã¢â¬ÅLoanÃ¢â¬Â) from a Japanese bank, Tokyo Star Bank Ltd (Ã¢â¬ÅTokyo StarÃ¢â¬Â). The Loan is expected to be fully disbursed on 18 March 2010, subject to the fulfillment of the conditions precedent as set out in the Loan Agreement, such as the registration of mortgages of the properties. The Loan is for a term of 5 years up to 16 March 2015 and carries a fixed annual interest rate of 3.75625%. Under the Loan Agreement, Tokyo Star will also charge a one-time fee of JPY30.0 million (S$0.5 million), which is equivalent to 1.5% of the initial loan amount. The Loan has an amortising feature with JPY 100 million of principal repayment per annum. The Loan is non-recourse to Saizen REIT. Under the Loan Agreement, the asset manager of Saizen REIT, KK Tenyu Asset Management (the Ã¢â¬ÅAsset ManagerÃ¢â¬Â), will act as a sponsor for the Loan. In return, the Asset Manager will charge an annual sponsor fee (the Ã¢â¬ÅSponsor FeeÃ¢â¬Â) of 0.175% of the outstanding loan amount. The property portfolio of YK Shinzan, which is unencumbered and valued at JPY 4.8 billion (S$74.0 million) based on valuations as at 30 June 2009, will be pledged as security for the Loan. The proceeds from the Loan will be deployed towards Saizen REITÃ¢â¬â¢s working capital until such time when they are required for other purposes, including the refinancing of the loan of YK Shintoku (if such refinancing is possible). The Management Team is pleased with the establishment of a new banking relationship with Tokyo Star. Despite the challenging economic environment and global credit crisis over the past two years, the Management Team has successfully established new banking relationships with five financial institutions. It intends to continue its efforts on diversifying sources of financing and working towards obtaining new loans with existing and new lenders.
Hello friends, i just joined this forum and hope to engage in informed discussions. one very profitable investment i find most investors ignorant of is REITS, i want to start a thread on this where i will be posting my views overall on REITS and also on specific ones to start with here is a piece I wrote on reits sometime back for PULSES the local business periodical, take a look.. will follow up with more in-depth analysis later... cheers