DMG Research has pegged Saizen real estate investment trust (Reit) one of the most affected Singapore-listed companies to emerge from the recent earthquake to hit Japan.
Saizen has 22 of its 146 properties in Japan located near the epicentre of the tsunami in Sendai.
“In total, all six properties in Morioka and Koriyama, and eight 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,” according to Saizen’s latest update on the property conditions in Japan.
Other S-Reits with properties in Japan and Singapore listed-companies faired better, compared to Saizen.
The healthcare facilities owned by Parkway Life Reit that are mainly in western Japan, dropped 1.2 percent to S$1.68 still structurally sound and with its properties intact.
PLife Reit’s 29 nursing homes and one pharmaceutical manufacturing facility is continuing “business as usual”. The Reit’s closest property is in Akita, which is 200 km away from the Sendai area.
Janice Ding, Analyst for CIMB, reported that despite minor water pipe leakage seen at PLife’s manufacturing facility in Matsudo, PLife has a target price of S$1.98.
“Nursing home residents usually stay for a longer term, at around three to five years on average,” said a PLife company spokesman addressing the forecast of the company. “Hence, we do not expect any significant changes in occupancy rates. Our Japan nursing homes are on long term master leases and as such, income will not be affected by any dips in occupancy rates.”