Saizen REIT: More buildings confirmed standing.

This is the latest from the managers:

"The property managers have managed to view a further 5 properties in Sendai and 3 properties in Morioka. In total, all 6 properties in Morioka and Koriyama, and 8 out of 22 properties in Sendai have been viewed by the property managers thus far, and preliminary reports have confirmed that these properties appear to have sustained only minor damage and are not in any imminent danger of collapse.

"To-date, we have not received any reports of tenant casualties, and none of the properties viewed appear to have been vacated.... All the 28 affected properties are located outside the evacuation zones surrounding the nuclear power plants at risk."

Of the 14 properties yet to be viewed, 9 belong to the portfolio of YK Shintoku which does not contribute to income distribution as its CMBS is in default.  Read announcement here.

Saizen REIT: Update on properties in Sendai, Koriyama and Morioka.

Panic selling of units of Saizen REIT from the opening bell this morning was evident as price gapped down and started the day at 13.5c. As of now, it seems to have found support at 13c, the price at which I started investing in the REIT in 2009.

The management of the REIT has issued an update on the situation in Japan:

"The property managers have managed to view 6 properties so far, as set out below. Preliminary reports have confirmed that these 6 properties have sustained only minor damage and do not appear in any imminent danger of collapse. However, the full extent of damage can only be ascertained after more detailed assessments.

"The property managers have managed to view 3 out of 22 properties in Sendai....It should be noted that 11 out these 22 properties (with annual rental income of approximately JPY 152.8 million (S$2.4 million)) belong to the YK Shintoku portfolio. Revenues from YK Shintoku’s properties currently do not contribute to distributions. (This was a point I made in an earlier blog post as well. See it here.)

"The property managers have managed to view all 3 properties in Koriyama.... The property managers have not managed to view any of the 3 properties in Morioka.... It should be noted that 1 out these 3 properties (with annual rental income of approximately JPY 30.6 million (S$0.5 million)) belongs to the YK Shintoku portfolio." See announcement here.

The selling this morning is overdone but it is to be expected, I suppose. If I did not have a thorough understanding of the REIT's current financial standing and how much it could suffer on the downside in the worst case scenario, I could have been one of the sellers too. Good luck to us all.

Related posts:
Saizen REIT: Properties in Sendai and YK Shintoku.
Saizen REIT: Sendai, Koriyama and Moriokas' positions in relation to the two distressed nuclear power plants.