tag:blogger.com,1999:blog-7944902213075756335.post9168761410369977774..comments2024-03-28T23:00:40.055+08:00Comments on A Singaporean Stocks Investor (ASSI): Saizen REIT's properties: Would I buy?AK71http://www.blogger.com/profile/16832145412062954289noreply@blogger.comBlogger6125tag:blogger.com,1999:blog-7944902213075756335.post-63981367011769755392010-10-11T21:23:25.067+08:002010-10-11T21:23:25.067+08:00Hi Nick,
Actually, the proposal to do a
"pr...Hi Nick,<br /><br />Actually, the proposal to do a <br />"progressive and partial sale of YK Shintoku’s properties to reduce the absolute amount of the<br />YK Shintoku Loan" was made by the loan servicer and accepted by the CMBS holders (the existing lenders). This point is purely academic but I just want to highlight it.<br /><br />Saizen REIT also has two other portfolios which are AK71https://www.blogger.com/profile/16832145412062954289noreply@blogger.comtag:blogger.com,1999:blog-7944902213075756335.post-78077110464489745952010-10-11T21:04:40.433+08:002010-10-11T21:04:40.433+08:00Hi Darryl,
When a company is in default, its prim...Hi Darryl,<br /><br />When a company is in default, its primary responsibility is to its creditors and not to its shareholders. Finding ways to repay the defaulted debt should take priority over any attempts to make a profit. Similarly here, Saizen's TK 'subsidiary' is in material default and hence it has to start selling assets to reduce its exposure to the CMBS if the creditors willAnonymousnoreply@blogger.comtag:blogger.com,1999:blog-7944902213075756335.post-67063439807426308932010-10-11T21:00:56.337+08:002010-10-11T21:00:56.337+08:00Hi SnOOpy88,
I have no doubt that the next income...Hi SnOOpy88,<br /><br />I have no doubt that the next income distribution which would take place in March 2011 would be a much bigger sum. ;)<br /><br />http://singaporeanstocksinvestor.blogspot.com/2010/08/saizen-reit-better-than-expected-dpu.htmlAK71https://www.blogger.com/profile/16832145412062954289noreply@blogger.comtag:blogger.com,1999:blog-7944902213075756335.post-18076629677186790022010-10-11T20:56:44.264+08:002010-10-11T20:56:44.264+08:00Hi Darryl,
YK Shintoku's CMBS is in default s...Hi Darryl,<br /><br />YK Shintoku's CMBS is in default since November 2009. Saizen REIT, as you may already know, is paying punitive 7.07% interest rate on that CMBS and would continue to do so unless they could refinance the CMBS. <br /><br />To make it more palatable to potential lenders, they are selling assets in YK Shintoku to pay off the CMBS partially to make the absolute loan quantumAK71https://www.blogger.com/profile/16832145412062954289noreply@blogger.comtag:blogger.com,1999:blog-7944902213075756335.post-48860201838867349002010-10-11T20:02:57.869+08:002010-10-11T20:02:57.869+08:00Nice insight.
Whatever Saizen does, in assets tur...Nice insight.<br /><br />Whatever Saizen does, in assets turnover / refinancing under better terms / asset enhancements (did they?) etc, I just hoped that they can resume paying regular dividends and a high one too.<br /><br />This counter remains my only exposure to the Japanese market.<br /><br />Everyone huat ah.....<br /><br />SnOOpy88Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-7944902213075756335.post-41641832625646949972010-10-11T19:57:25.839+08:002010-10-11T19:57:25.839+08:00Hi AK71, I am just wondering, if Saizen Reit could...Hi AK71, I am just wondering, if Saizen Reit could have got 16.5% yield on that property, why in the world would they sell it? Are the other properties in their portfolio earning that yield or more?<br /><br />Of course I understand that they wish to pay down debt but it just sounds like they are getting the bad end of the deal here.Darrylnoreply@blogger.com