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Regular visitors to my blog would know that I am still actively accumulating units in Saizen REIT. I have written extensively about the REIT and I have also received readers' comments in affirmation as well as cautionary advice.
Even though I believe that my FA of the REIT is thorough and my continuing accumulation of units in the REIT is sensible, it is, dare I say, bracing to hear from more professional quarters.
I remember saying that even if the YK Shintoku portfolio suffers foreclosure, Saizen REIT is still a buy as it would still be severely undervalued. That is why when a friend told me that his father does not like the management's seemingly cavalier attitude towards this matter, I told him that it is not a big issue and that the management has good reasons to be less worried about it.
"Assuming a conservative stance and based on the assumption that the JPY7.25b CMBS loan encumbered with JPY9.10b worth of assets will be foreclosed eventually, using DDM, we value Saizen at 24.5 Scts (previously 24.3 Scts) and arrive at a target price of 17.0 S cts as previously, maintaining our discount to valuation of 30%."
"News flow of new credit access is expected to lift valuations to 32.3Scts and a target price of 22.5Scts (based on the same 30% discount rate), providing catalyst for further upward re-rating of Saizen."
Written by Angeline Phua (NRA Capital) .
SAIZEN REIT: Fair value 17 c, long-term buy , please read it here.
Just like my earlier investments in Healthway Medical and some other companies before I started this blog, I believe that accumulating shares in good companies before everyone else is interested in them is one of the best ways to greater capital gains. Well, in the case of Saizen REIT, we are accumulating units. Good luck to fellow unitholders and have a good Sunday.
Related posts:
Buy Japanese real-estate.
Passive income with high yields: Saizen REIT.
Saizen REIT's quarterly report.
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