Saizen REIT

[d.o.g.]

All of saizen's loans and earnings are denominated in Japanese Yen, so maybe there's a good chance to refinance at lower rate as Japan is now again swimming in cheap loans and when Yen rises against USD and after conversion to S$ there could be some unexpected bonuses in store.

Long-term owners should consider the economic tailwinds [edit: I meant headwinds] facing Japan. Demographics is a big problem since the shrinking and ageing population is unlikely to result in increased demand for housing, with a consequent depressing effect on rents. Saizen's properties are in the local hub cities, so they'll be hit less slowly, but they are still in the eventual path of the demographic train. Tokyo will be the last to fall, but Saizen doesn't have many properties in Tokyo.

The other effect of a declining Japanese economy is the exchange rate. The yen is probably overvalued given the poor state of the economy and the high level of government debt. Plus, export dependence means that companies will lobby for a weak yen. Since the government can fix its own fiscal issues and please exporters at the same time by printing yen, it is likely to do so sooner rather than later. The government is already running out of domestic buyers for its bonds, so D-Day is approaching. It could be years away, but it could also be months.

As usual, YMMV.