Thursday, August 23, 2012

Saizen Reit posts higher FY DPU

Business Times: Thu, Aug 23

SAIZEN Real Estate Investment Trust yesterday posted distribution per unit of 1.24 cents for the fiscal year ended June 30, 2012, and declared a distribution of 0.63 Singapore cent per unit.

A year ago, the Reit reported DPU of 1.02 cents and paid out 0.50 cent per unit.

Unitholders can expect to receive their distribution for the period ended June 30, 2012, on Sept 18, 2012.

Distributable income from operations amounted to 575.45 million yen (S$9.2 million) for the year, up from 401.97 million yen a year ago, which includes an amount from capital cash resources which will be used to offset loan principal repayment.

However, net property income fell 7.8 per cent year on year to 2.34 billion yen from 2.54 billion yen, due mainly to the sale of 31 properties the previous year and a slight 2.1 per cent decrease in rental rates of new contracts entered into in FY2012.

The average occupancy rate was 91.4 per cent in FY2012 as compared to 90.9 per cent in FY2011.

In the financial year, Saizen acquired four properties, including its first two properties in Tokyo for an aggregate purchase price of 3.1 billion yen.

In August, the group added another two properties for one billion yen. Consequently, Saizen's property portfolio now comprises 136 properties with a total value of 37.46 billion yen.

Its current unencumbered properties are valued at an aggregate of 2.82 billion yen, and the management is actively exploring the possibility of raising funds via the use of its unencumbered properties as collateral.

While Saizen continues to explore acquisition opportunities subject to availability of funds, the management is also looking for opportunities to realise some of its assets so as to rebalance the Reit's property portfolio with a view of enhancing the overall quality and growth potential.

Most recently, Saizen is seeking unitholders' approval for a unit buy-back mandate so as to provide the manager with flexible and cost effective tool for capital management.

Saizen ended yesterday up 0.1 cent at 15.8 cents per unit.


Martin Koh | 86666 944 | R020968Z
Sherry Tang | 9844 4400 | R020241C
Senior Sales Director
DTZ Debenham Tie Leung (SEA) Pte Ltd (L3006301G)

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