Saizen Reit Q3 2010 Quarterly Earnings Report

Q3 2010 results for Saizen Reit:

• Financial Statements 

Key Points

• Gross revenue, net property income and net income from operations increased marginally yoy by 0.8%, 0.8% and 2.5% respectively. In Japanese yen terms, they were slightly lower, but were out-weighed by a 2.8% appreciation of the JPY against the S$.
• On a qoq basis, gross revenue, net property income and net income from operations increased by 4.8%, 11.6% and 20.3% respectively. In JPY-terms, while gross revenue stayed flat, net property income and net income from operations increased by 6.5% and 14.8% respectively. This was due mainly to lower property operating expenses and other trust expenses. This performance was also enhanced by a 4.7% appreciation of the JPY against the S$ between quarters.
• The average occupancy rate was 90.9% in 1Q FY2011, as compared to 91.3% in the first quarter ended 30 Sep 2009 and 91.7% in the previous quarter ended 30 Jun 2010.
• Saizen REIT intends to continue to pay out semi-annual distributions in accordance with its distribution policy.
• The next distribution payment is expected to take place in March 2011 in respect of distributable cash accumulated in the six months financial period ending 31 December 2010.
• NAV per Unit has decreased from S$0.40 per Unit as at 30 June 2010 to S$0.36 per Unit as at 30 September 2010 due to the exercise of warrants with prices lower than the prevailing net asset value per Unit.

Author's Note

The manager has reiterated its intention to pay out distributions. The distribution frequency will be semi-annual, and the payments will be for the following periods:

1. From 1 Jan to 30 Jun
2. From 1 Jul to 31 Dec

The next distribution will thus be for the period from 1 Jul to 31 Dec 2010, and will probably be announced in the next quarterly earnings report. The payment of the next distribution is expected to be in Mar 2011.