The strong JPY is a boon for Saizen REIT unitholders as it lifted distributable income in S$ terms as well as the NAV per unit.
A DPU of 0.61c has been declared for 1H FY2012 and is payable on 6 March 2012. At a unit price of 15c, this represents an annualised distribution yield of 8.1% which is not bad at all.
NAV per unit stands at 35c.
I continue to like the fact that Saizen REIT owns freehold residential properties in a country which sees a majority of its population renting the homes they stay in.
A continuing decline in rental reversions although small hints at a weak housing market and keeping the status quo, the only way DPU could grow is through cost cutting and a continuing appreciation of the JPY.
However, the management is unlikely to keep the status quo and Saizen REIT could potentially increase DPU through acquisitions using ......