Saizen Real Estate Investment Trust (Reit), the first real estate investment trust (Reit) in Singapore with purely Japanese regional residential properties, has posted a distributable income of S$6.1 million as of 30 June 2011, a rise from S$2.7 million as of the same period last year.
The group said the increase was mainly due to a lower amount of cash used for loan repayments during the financial year ended 30 June 2011, compared to last year.
Saizen Reit’s property operations remained stable in the 2011 financial year, with average occupancies above 90 percent and marginal downward rental reversions for new contracts.
Gross revenue dropped 6.4 percent, while the group’s gearing fell to 24.5 percent as of 30 June 2011, from 36.9 percent last year, following loan repayments made in FY2011.
“In the past year, Saizen Reit’s performance has been underpinned by its stable and resilient operations, even when faced with the unfortunate and difficult circumstances caused by the March 2011 earthquake,” said Chang Sean Pey, Co-Chief Executive Officer of the Manager.
“With our on-going efforts to seek new financing and the improvement in Saizen Reit’s corporate family rating, we are hopeful of securing additional financing for property acquisition opportunities this financial year,” said Linus Koh, Co-Chief Executive Officer of the Manager.
“Barring unforeseen circumstances, Saizen Reit’s property operations are expected to remain stable and generate steady cash flow to enable Saizen Reit to continue to pay out semi-annual distributions.”
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