Saizen Reit Repays YK Shintoku loan

Saizen Reit Repays YK Shintoku loan:

• Press Release

Key Points

• The manager Saizen REIT is pleased to announce that the loan of YK Shintoku had been fully repaid on 31 May 2011.
• Following the completion of the Repayment and the cancellation of the mortgage over YK Shintoku’s property portfolio, YK Shintoku’s portfolio of 27 properties which is valued at approximately JPY 4.3 billion1 (S$65.6 million) will become unencumbered. 
• Together with the property portfolios of YK Keizan, YK Shingen and GK Chosei, the total value of Saizen REIT’s unencumbered properties will amount to approximately JPY 14.9 billion (S$227.5 million).
• After the Repayment, Saizen REIT’s borrowings comprise five loans amounting to approximately JPY 9.0 billion (S$137.4 million), with the nearest loan maturity due in June 2013. 
• Saizen REIT’s gearing after the Repayment is approximately 24%.

Author's Note
The term "unencumbered" here means that the properties are not currently under any mortgage agreements, or are being used as collateral for loans. 

Related Posts

• Saizen Reit Divests Alpha Shinonome and Rise Gofuku
• Saizen divests Studio City from the YK Shingen portfolio
• Saizen divests Art Side Terrace and KN 21 Shiragane
• Saizen divests Escort South 11
• Saizen Reit Divests of Club House Kikugaoka
• Saizen Reit - Divestment of Johnan Building III and Wealth Meinohama

Saizen Reit Divests Alpha Shinonome and Rise Gofuku

Saizen Reit Divests Alpha Shinonome and Rise Gofuku:

• Press Release

Key Points

• The manager Saizen REIT wishes to announce the divestments of Alpha Shinonome and Rise Gofuku from the property portfolio of Yugen Kaisha (“YK”) Shintoku.
• YK Shintoku has, on 31 May 2011, entered into a sale and purchase agreement for the divestment of Alpha Shinonome (“ASN”) to an independent private investor (the “ASN Buyer”) for a cash consideration of JPY 74,402,500 (S$1.1 million 1 ) (the “ASN Sale Price”). The divestment of ASN was completed on the same day upon the payment of the full amount of the ASN Sale Price by the ASN Buyer.
• ASN, located in Hiroshima, was built in December 1984 and comprises 27 residential units. It contributed about 0.2% (or approximately JPY 9.5 million) of Saizen REIT’s annual revenue in the financial year ended 30 June 2010 (“FY2010”).
• YK Shintoku has, on 31 May 2011, entered into a sale and purchase agreement for the divestment of Rise Gofuku (“RG”) to an independent private investor (the “RG Buyer”) for a cash consideration of JPY 234,780,942 (S$3.6 million) (the “RG Sale Price”).
• The divestment of RG was completed on the same day upon the payment of the full amount of the RG Sale Price by the RG Buyer.
• RG, located in Kumamoto, was built in April 2006 and comprises 34 residential units, 1 commercial unit and 2 car parking units. It contributed about 0.6% (or approximately JPY 26.3 million) of Saizen REIT’s annual revenue in the FY2010.
• Given the small sizes of ASN and RG relative to the entire portfolio of Saizen REIT, the Current Divestments are not expected to have any material impact on the financial position of Saizen REIT.

Related Posts

• Saizen divests Studio City from the YK Shingen portfolio
• Saizen divests Art Side Terrace and KN 21 Shiragane
• Saizen divests Escort South 11
• Saizen Reit Divests of Club House Kikugaoka
• Saizen Reit - Divestment of Johnan Building III and Wealth Meinohama

Saizen Reit Q1 2011 Quarterly Earnings Report

Saizen Reit Q1 2011 Quarterly Earnings Report:

• Financial Statements

Key Points

• Revenue and income decreased year-on-year and quarter-on-quarter for the third quarter ended 31 March 2011 (“3Q FY2011”), due mainly to the sale of 18 properties between September 2010 and March 2011, of which six properties were sold in 3Q FY2011.
• The average occupancy rate was 91.0% in 3Q FY2011, as compared to 91.8% in the third quarter ended 31 March 2010 (“3Q FY2010”) and 90.8% in the previous quarter ended 31 December 2010 (“2Q FY2011”). Overall rental reversion of new contracts entered into in 3Q FY2011 was marginally lower by about 3.6% (3Q FY2010 and 2Q FY2011: lower by about 4.7% and 3.2% respectively) from previous contracted rates.
• Loan of YK Shintoku to be fully repaid by end of May 2011. YK Shintoku and YK Shingen divested three properties each in 3Q FY2011, at a weighted average discount of about 2% to valuation. In aggregate, these six properties contributed a gross revenue of JPY 28.0 million (S$0.4 million), or 2.9% of the Group’s total revenue, in 3Q FY2011. Partial loan repayment using sale proceeds as well as principal repayments made from YK Shintoku’s operations cash flow in 3Q FY2011 had reduced the loan balance of YK Shintoku to JPY 4.8 billion (S$73.1 million) as at the end of March 2011. YK Shintoku has commenced a repayment planwhich will enable its loan to be fully repaid by the end of May 2011.
• NAV per unit of $0.34 as at 31 Mar 2011.

Author's Note
There is no distribution this quarter as the Reit adopts a semi-annual distribution policy. The next distribution payment is expected to take place in September 2011 in respect of distributable cash accumulated in the six months financial period ending 30 June 2011.


The previous distribution was 0.52 cents per Unit, paid on 8 March 2011.

Related Posts

• Results Release 
• DPU Information Page 
• Saizen Reit Q3 2010 Quarterly Earnings Report 
• Saizen Reit Q4 2010 Quarterly Earnings Report 

Saizen divests Studio City from the YK Shingen portfolio

Saizen divests Studio City from the YK Shingen portfolio:

• Press Release

Key Points

• YK Shingen has, on 10 May 2011, entered into a conditional sale and purchase agreement for the divestment of Studio City (“SC”) to an independent private investor (the “SC Buyer”) for a cash consideration of JPY 175,000,000 (S$2.7 million) (the “SC Sale Price”).
• SC, located in Sapporo, was built in March 1985 and comprises 51 residential units, 1 commercial unit and 12 car parking units. It contributed about 0.6% (or approximately JPY 26.8 million) of Saizen REIT’s annual revenue in the financial year ended 30 June 2010 (“FY2010”).
• Given the small size of SC relative to the entire portfolio of Saizen REIT, the Current Divestment is not expected to have any material impact on the financial position of Saizen REIT.

Related Posts

• Saizen divests Art Side Terrace and KN 21 Shiragane
• Saizen divests Escort South 11
• Saizen Reit Divests of Club House Kikugaoka
• Saizen Reit - Divestment of Johnan Building III and Wealth Meinohama

Saizen - Date of Result Release for Q1 2011

Updated date of Result Release for Q1 2011:
Saizen May 12 (AM)

Latest Update at Results Release.

Saizen divests Art Side Terrace and KN 21 Shiragane

Saizen divests Art Side Terrace and KN 21 Shiragane:

• Press Release

Key Points

• YK Shintoku has, on 15 April 2011, entered into a sale and purchase agreement for the divestment of Art Side Terrace (“AST”) to an independent private investor (the “AST Buyer”) for a cash consideration of JPY 416,745,000 (S$6.3 million 1 ) (the “AST Sale Price”). 
• The divestment of AST was completed on the same day upon the payment of the full amount of the AST Sale Price by the AST Buyer.
• AST, located in Sapporo, was built in February 1986 and comprises 61 residential units, 2 commercial units and 22 car parking units. 
• It contributed about 1.2% (or approximately JPY 49.3 million) of Saizen REIT’s annual revenue in the financial year ended 30 June 2010 (“FY2010”).
• YK Shintoku has, on 15 April 2011, entered into a sale and purchase agreement (the “KN Agreement”) for the divestment of KN 21 Shiragane (“KN”) to an independent private investor (the “KN Buyer”) for a cash consideration of JPY 213,164,000 (S$3.2 million) (the “KN Sale Price”). 
• The divestment of KN was completed on the same day upon the payment of the full amount of the KN Sale Price by the KN Buyer.
• KN, located in Kitakyushu, was built in March 2000 and comprises 31 residential units, 1 commercial unit and 27 car parking units. 
• It contributed about 0.5% (or approximately JPY 22.1 million) of Saizen REIT’s annual revenue in the financial year ended 30 June 2010 (“FY2010”).
• Given the small sizes of AST and KN relative to the entire portfolio of Saizen REIT, the Current Divestments are not expected to have any material impact on the financial position of Saizen REIT.

Related Posts

• Saizen divests Escort South 11
• Saizen Reit Divests of Club House Kikugaoka
• Saizen Reit - Divestment of Johnan Building III and Wealth Meinohama
• Saizen Reit divests of Jewel Town Suehiro - 10 NOV 2010
• Saizen Divests Kamei Five from the property portfolio of YK Shintoku - 21 OCT 2010
• Saizen divests 3 properties - 14 OCT 2010
• Saizen Reit divests Villa Kaigancho - 8 OCT 2010
• Saizen completes divestment of Patios Ohashi - 30 SEP 2010
• Saizen divests four properties - 29 SEP 2010

Saizen divests Escort South 11

Saizen divests Escort South 11:

• Press Release

Key Points

• YK Shintoku has, on 11 April 2011, entered into a conditional sale and purchase agreement for the divestment of Escort South 11 to an independent private investor for a cash consideration of JPY 45,520,000 (S$0.7 million).
• ES, located in Sapporo, was built in March 1992 and comprises 10 residential units. 
• It contributed about 0.3% (or approximately JPY 11.9 million) of Saizen REIT’s annual revenue in the financial year ended 30 June 2010 (“FY2010”).
• Given the small size of ES relative to the entire portfolio of Saizen REIT, the Current Divestment is not expected to have any material impact on the financial position of Saizen REIT.

Related Posts

• Saizen Reit Divests of Club House Kikugaoka
• Saizen Reit - Divestment of Johnan Building III and Wealth Meinohama
• Saizen Reit divests of Jewel Town Suehiro - 10 NOV 2010
• Saizen Divests Kamei Five from the property portfolio of YK Shintoku - 21 OCT 2010
• Saizen divests 3 properties - 14 OCT 2010
• Saizen Reit divests Villa Kaigancho - 8 OCT 2010
• Saizen completes divestment of Patios Ohashi - 30 SEP 2010
• Saizen divests four properties - 29 SEP 2010 

Saizen - Repayment plan for YK Shintoku loan

Saizen - Repayment plan for YK Shintoku loan:

• Press Release

Key Points

• The Manager has set out a schedule for the full repayment of the YK Shintoku Loan, with the intention of averting any foreclosure actions.
• The repayment schedule under the Repayment Plan is as follows:
• repayment of not less than JPY 2.0 billion (S$29.9 million) on 11 April 2011;
• repayment of approximately JPY 0.8 billion (S$12.0 million) between 12 April 2011 and 30 May 2011, through proceeds from the disposals of YK Shintoku’s properties, including those currently under negotiation or pending completion; and
• repayment of the balance amount on or before 31 May 2011.
• The Repayment Plan is currently being discussed and has not been agreed to by the lender.

Related Posts

• Saizen Reit Divests of Club House Kikugaoka
• Saizen Reit - Divestment of Johnan Building III and Wealth Meinohama
• Saizen Reit divests of Jewel Town Suehiro - 10 NOV 2010
• Saizen Divests Kamei Five from the property portfolio of YK Shintoku - 21 OCT 2010
• Saizen divests 3 properties - 14 OCT 2010
• Saizen Reit divests Villa Kaigancho - 8 OCT 2010
• Saizen completes divestment of Patios Ohashi - 30 SEP 2010
• Saizen divests four properties - 29 SEP 2010

Saizen Reit Divests of Club House Kikugaoka

Saizen Reit Divests of Club House Kikugaoka:

• Press Release

Key Points

• YK Shingen has, on 29 March 2011, entered into a sale and purchase agreement for the divestment of Club House Kikugaoka (“CHK”) to an independent private investor (the “CHK Buyer”) for a cash consideration of JPY 230,000,000 (S$3.6 million1) (the “CHK Sale Price”). 
• The divestment of CHK was completed on the same day upon the payment of the full amount of the CHK Sale Price by the CHK Buyer.
• CHK, located in Kitakyushu, was built in March 1991 and comprises 25 residential units and 26 car parking units. It contributed about 0.6% (or approximately JPY 23.3 million) of Saizen REIT’s annual revenue in the financial year ended 30 June 2010 (“FY2010”).
• Given the small size of CHK relative to the entire portfolio of Saizen REIT, the Current Divestment is not expected to have any material impact on the financial position of Saizen REIT.

Related Posts

• Saizen Reit - Divestment of Johnan Building III and Wealth Meinohama
• Saizen Reit divests of Jewel Town Suehiro - 10 NOV 2010
• Saizen Divests Kamei Five from the property portfolio of YK Shintoku - 21 OCT 2010
• Saizen divests 3 properties - 14 OCT 2010
• Saizen Reit divests Villa Kaigancho - 8 OCT 2010
• Saizen completes divestment of Patios Ohashi - 30 SEP 2010
• Saizen divests four properties - 29 SEP 2010 

Saizen Reit - Divestment of Johnan Building III and Wealth Meinohama

Divestment of Johnan Building III and Wealth Meinohama:

• Press Release for Divestment of Johnan Building III
• Press Release for Divestment of Wealth Meinohama

Key Points on Divestment of Johnan Building III

• Entered into a sale and purchase agreement for the divestment of Johnan Building III (“JB3”) to an independent private investor (the “JB3 Buyer”) for a cash consideration of JPY 312,577,516 (S$4.9 million 1 ) (the “JB3 Sale Price”). 
• The divestment of JB3 was completed on the same day upon the payment of the full amount of the JB3 Sale Price by the JB3 Buyer. 
• JB3, located in Fukuoka, was built in June 1983 and comprises 24 residential units, 6 commercial units and 21 car parking units. It contributed about 0.9% (or approximately JPY 35.9 million) of Saizen REIT’s annual revenue in the financial year ended 30 June 2010 (“FY2010”).
• Given the small size of JB3 relative to the entire portfolio of Saizen REIT, the Current Divestment is not expected to have any material impact on the financial position of Saizen REIT.

Key Points on Divestment of Wealth Meinohama  

• Further to announcement on 14 March 2011, the manager of Saizen REIT is pleased to announce that the divestment of Wealth Meinohama was completed on 23 March 2011.
• WM’s sale price of JPY 59,500,000 (S$0.9 million) was paid in full on 23 March 2011.

Related Posts

• Saizen Reit divests of Jewel Town Suehiro - 10 NOV 2010
• Saizen Divests Kamei Five from the property portfolio of YK Shintoku - 21 OCT 2010
• Saizen divests 3 properties - 14 OCT 2010
• Saizen Reit divests Villa Kaigancho - 8 OCT 2010
• Saizen completes divestment of Patios Ohashi - 30 SEP 2010
• Saizen divests four properties - 29 SEP 2010

Saizen, MLT update on impact of Earthquake to Japanese properties

Saizen, MLT update on impact of Earthquake to Japanese properties:

• Press Release By MLT
• Press Release By Saizen

Author's Note
The clearer assessment of the potential damage will probably need more time due to breakdown of telecommunications networks and power blackouts. Other REITs that have Japanese properties in their portfolio include Parkway Life Reit and Frasers Commercial Trust. Frasers Commercial Trust has just announced its divestment of Cosmo Plaza, a Japanese property, in Jan 2011, but it still has some other Japanese properties in its portfolio. AIMSAMPI Reit has announced the divestment of its only property in Japan in Feb 2011. The divestment is expected to be completed in Mar 2011.


Related Posts

• AIMSAMPI Reit Sells Asahi Ohmiya Warehouse in Japan Above Book Value 
• FrasersComm Divests Cosmo Plaza in Osaka Japan

Saizen Reit Q4 2010 Quarterly Earnings Report:

Saizen Reit Q4 2010 Quarterly Earnings Report:

• Financial Statements

Key Points

• Distribution of 0.52 Singapore cents per Unit for the six-month financial period ended 31 December 2010.
• While property operations remained stable, revenue and income decreased year-on-year and quarter-on-quarter for the second quarter ended 31 December 2010 (“2Q FY2011”), due mainly to the sale of a total of 12 properties between September 2010 and November 2010.
• The average occupancy rate was 90.8% in 2Q FY2011, as compared to 91.0% in the second quarter ended 31 December 2009 (“2Q FY2010”) and 90.9% in the previous quarter ended 30 September 2010.
• YK Shintoku’s loan issue continues to be addressed. YK Shintoku divested seven properties in 2Q FY2011, at a weighted average discount of about 4% to valuation.
• The Books will close from 5pm on 21 Feb 2011 for the purpose of determining Unitholders’ entitlement to the distribution. 
• Distribution is to be paid on 8 March 2011. 
• NAV per unit of $0.36 as at 31 December 2010.

Author's Note
The DPU for the reporting quarter is 0.52 cents. It will be paid on 8 March 2011, with the Books closure on 21 Feb 2011.

The previous distribution had been 0.26 cents per Unit for the financial year ended 30 June 2010. The distribution was much lower previously as it was actually distributable cash accumulated over two months (May 2010 and June 2010).

Related Posts

• Results Release 
• DPU Information Page 
• Saizen Reit Q3 2010 Quarterly Earnings Report

Saizen Reit - Date of Result Release for Q4 2010

Updated date of Result Release for Q4 2010:

Saizen Reit  FEB 11 (AM)

Latest Update at Results Release.

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.

Saizen Reit divests of Jewel Town Suehiro - 10 NOV 2010

Divestment of Jewel Town Suehiro from the property portfolio of YK Shintoku.
See press release.

Key Points

• YK Shintoku has, on 9 November 2010, entered into a sale and purchase agreement for the divestment of Jewel Town Suehiro (“JT”) to an independent private investor (the “JT Buyer”) for a cash consideration of JPY 146,042,400 (S$2.3 million 1 ) (the “JT Sale Price”). 
• The divestment of JT was completed on the same day upon the payment of the full amount of the JT Sale Price by the JT Buyer.
• JT, located in Hakodate, was built in August 1991 and comprises 30 residential units and 8 car parking units. It contributed about 0.5% (or approximately JPY 19.1 million) of Saizen REIT’s annual revenue in the financial year ended 30 June 2010 (“FY2010”).
• Given the small size of JT relative to the entire portfolio of Saizen REIT, the Current Divestment is not expected to have any material impact on the financial position of Saizen REIT.

Related Posts

• Saizen Divests Kamei Five from the property portfolio of YK Shintoku - 21 OCT 2010
• Saizen divests 3 properties - 14 OCT 2010
• Saizen Reit divests Villa Kaigancho - 8 OCT 2010
• Saizen completes divestment of Patios Ohashi - 30 SEP 2010
• Saizen divests four properties - 29 SEP 2010

Saizen Reit, Fortune Reit - Date of Result Release for Q3 2010

Updated date of Result Release for Q3 2010:
Fortune Reit   NOV 8  
Saizen Reit   NOV 10 (AM)  


Latest Update at Results Release.

Saizen Divests Kamei Five from the property portfolio of YK Shintoku - 21 OCT 2010

Saizen Divests Kamei Five from the property portfolio of YK Shintoku.
See press release.

Key Points

• YK Shintoku has, on 21 October 2010, entered into a conditional sale and purchase agreement for the divestment of Kamei Five to an independent private investor for a cash consideration of JPY 70,401,250 (S$1.1 million).
• Kamei Five, located in Hiroshima, was built in July 1989 and comprises 22 residential units, 2 commercial units and 2 car parking units. It contributed about 0.2% (or approximately JPY 9.8 million) of Saizen REIT’s annual revenue in the financial year ended 30 June 2010.

Related Posts
Saizen divests 3 properties - 14 OCT 2010
Saizen Reit divests Villa Kaigancho - 8 OCT 2010
Saizen completes divestment of Patios Ohashi - 30 SEP 2010
Saizen divests four properties - 29 SEP 2010

Saizen divests 3 properties - 14 OCT 2010

Saizen divests 3 properties. See press release.

Key Points

• The manager of Saizen REIT wishes to announce the divestment of the following properties from the property portfolio of Yugen Kaisha (“YK”) Shintoku:
• Higashi Hakushima Y Building 
• Otemachi Y Building
• Kinyacho Y Building

Related News

• Saizen Reit divests Villa Kaigancho - 8 OCT 2010 
• Saizen completes divestment of Patios Ohashi - 30 SEP 2010 
• Saizen divests four properties - 29 SEP 2010

 

Saizen Reit divests Villa Kaigancho - 8 OCT 2010

Saizen Reit divests Villa Kaigancho. See press release.

Key Points

• The manager Saizen REIT wishes to announce the divestment of Villa Kaigancho (the “Current Divestment”) from the property portfolio of YK Shintoku.
• YK Shintoku has, on 8 October 2010, entered into a sale and purchase agreement for the divestment of Villa Kaigancho (“VK”) to an independent private investor (the “VK Buyer”) for a cash consideration of JPY 250,710,000 (S$3.9 million1) (the “VK Sale Price”). The divestment of VK was completed on the same day upon the payment of the full amount of the VK Sale Price by the VK Buyer.
• VK, located in Hakodate, was built in November 1990 and comprises 50 residential units, 1 commercial unit and 24 car parking units. It contributed about 1.0% (or approximately JPY 41.4 million) of Saizen REIT’s annual revenue in the financial year ended 30 June 2010.
• Given the small size of VK relative to the entire portfolio of Saizen REIT, the Current Divestment is not expected to have any material impact on the financial position of Saizen REIT.
  
  

Saizen completes divestment of Patios Ohashi - 30 SEP 2010

Saizen completes divestment of Patios Ohashi. See press release.

Key Points

• Further to Saizen Real Estate Investment Trust’s ("Saizen REIT") announcement on 21 September 2010, the Board of Directors of Japan Residential Assets Manager Limited, the manager of Saizen REIT, is pleased to announce that the divestment of Patios Ohashi was completed on 30 September 2010.
• The sale price of Patios Ohashi is JPY 79,352,200 (S$1.2 million1) and a deposit of JPY 4,325,200 (S$0.1 million) was paid on 21 September 2010. The remaining sum was paid on 30 September 2010.