Sell @ $0.935
Forgot to sell yesterday (1st day xd for 3.2ct DPU) when it opened and matched at $0.94. Sold at a loss but will have a small profit after DPU payout.
I managed to clear all the ones I'd bought in anticipation of a good recommendation (eg. Pay out Special DPU due to high cash or Sell all assets and liquidate as NAV Discount 20%+) but was disappointed with it maintaining status quo. Am left with the original ones but may also sell those at current prices if there are buy volume. Reasons,
- Unable to understand their financials. Saizen uses Loan Amortization (they explained that it helps to lower their loan interest expenses – I can understand this) but uses Cash Reserves to offset that in order to maintain a larger DPU payout. They further mentioned that this DPU component (close to 50%) may not be sustainable as it's dependent on their Free Cash balance. What I don't understand is why Saizen is doing a Loan Amortization as I don't see it being done in other REITs, including those with Japan assets eg. CRT (in case it's a Japanese accounting requirement).
- Abenomics is taking a longer time to positively impact Residential assets and more so, in outlying areas (Tokyo commercial properties are already enjoying good increase in valuations)
- JPY continued to weaken recently, possibly to help make their Exports more competitive. But, this is bad for Saizen DPU
- Next DPU payout is 6mths later. Money could be better deployed elsewhere.
However, in the event Saizen share price slides towards 90ct, I may change my strategy… 😀