Saizen REIT property, Clair Court. (Photo: Saizen REIT)Saizen REIT property, Clair Court. (Photo: Saizen REIT)

Units of Singapore’s first and only residential REIT, Saizen REIT (SGX:T8JU), has fallen by more than 4% in the past ten days since it announced the outcome of a “strategic review”.

In December 2013, Saizen REIT announced that it appointed Deloitte & Touche Corporate Finance to undertake a “strategic review of options to enhance unit holder value”. REITsWeek understands that the review is undertaken in relation to the REIT’s financial performance.

However results of the review, announced on 9 June by the REIT’s manager Japan Residential Assets Manager Limited, seems to have left investors unconvinced as units of Saizen REIT fell from a high of SGD0.965 on that day to SGD0.925 at the close of the last trading day.

Among measures that were announced was a possible buyback of units of Saizen REIT at times of price weakness and general statements about the REIT looking out for suitable acquisition opportunities.

Saizen REIT invests in income-producing residential properties in Japan and went for IPO in 2007 at SGD1.00. Its unit slipped all the way to as low as SGD0.13 for much of 2012 and 2013 before management for the REIT executed a unit consolidation of one unit for every five units in November 2013.

Saizen REIT property to be divested in Fukuoka (Credit Saizen REIT)
Saizen REIT property recently divested in Fukuoka (Credit Saizen REIT)

By Ridzwan Rahmat

Ridzwan has been analysing REITs and business trusts since 2008, and personally manages a portfolio comprising mainly of SGX-listed REITs. He founded REITsWeek in 2013.