Saizen REIT

[Tiggerbee]

Hi all ... according to Moody’s calculations, Frasers Centrepoint Trust and Saizen REIT are the most insulated from rising interest rates. FCT has 94% of its total debt on fixed-rate terms, and 10% due for refinancing over the next 18 months. Saizen REIT has 85% of its debt on fixed-rate terms, and its earliest refinancing is in February 2018.

However share prices of Saizen had been dropping. Anyone had any insight on holding on to Saizen or to cut loss?

(Vested)

Based on history, Saizen had been doing share buy backs at about 17 cts, which translates to about 85 cts after the reverse stock split. My guess is that once the yield hits about 7.5%, Saizen will do share buy backs as that will give them a pretty decent margin over their cost of borrowing. Saizen's cost of borrowing is one of the lowest among the REITs listed in Singapore due to the low interest rate environment in Japan.