Sabana REIT: Global Small-Cap Indices.

It seems that Sabana REIT will no longer be unloved and the following development probably explains the after market large volume buy up at 94c per unit in the last session:

Sabana Real Estate Investment Management Pte. Ltd., the Manager of Sabana Shari’ah Compliant Industrial Real Estate Investment Trust (“Sabana REIT”), announces that Sabana REIT has been included in the Morgan Stanley Capital International “(MSCI”) Global Small-Cap Indices.

Commenting on Sabana REIT’s inclusion in the MSCI Global Small-Cap Indices, Mr Kevin Xayaraj, Chief Executive Officer and Executive Director of the Manager, said, “The MSCI Indices are widely tracked global equity benchmarks covering companies with good operational results and potential. The inclusion puts Sabana REIT onto the ‘radar screens’ of a much wider group of institutional investors and funds seeking value and performance from markets round the world. We are greatly encouraged to have achieved this major milestone and feel very honored for Sabana REIT to be selected as one of the constituent stocks, considering that it has been listed for only six months.”

Read annoucement here.

With greater exposure to international investors, this could only be good thing for the REIT. Sabana REIT is my second largest investment, together with First REIT, when I last looked. I am looking forward to possibly stronger unit prices in time to come.

Related post:
Sabana REIT: Resistance at 93c demolished.

Saizen REIT: YK Shintoku's CMBS repaid.

The Board of Directors of Japan Residential Assets Manager Limited, the manager (the “Manager”) of Saizen Real Estate Investment Trust ("Saizen REIT"), is pleased to announce that the loan of YK Shintoku had been fully repaid on 31 May 2011 (the “Repayment”).

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 billion (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%.  

Verify announcement here.

This is, of course, what I have been waiting for since I started investing in this REIT in late 2009. It is really a pity that the triple disasters hit Japan when it did. Otherwise, I have no doubt that Saizen REIT's unit price would be much higher than it is now.

As it is now, technically, further upside could be capped at 15.5c while downside could be limited at 14.5c. Could the repayment of YK Shintoku's CMBS provide a strong enough catalyst for the REIT's unit price to breakout on the upside?

Related post:
Saizen REIT: Sanity prevails with more good news.