Saizen REIT starts cash accumulation to resume distribution payouts

According to mainboard-listed Saizen REIT, it has started accumulating cash in preparation for the resumption of its distribution payouts, expecting payment of its 2010 financial year distribution to unitholders to take place sometime in September 2010.

For the third quarter ended in March 31, it reported a net property income of S$10.1 million, down 12.4 percent compared to the same period in 2009.

Saizen saw a healthy overall occupancy rate of 93.4 percent as at end-March.

It has also repaid all its loans, except for the commercial mortgage-backed securities (CMBS) loans.

The establishment of a new banking relationship, where it obtained a ¥2-billion loan, has strengthened its financial position, it said.

Saizen, which provides access to purely Japanese residential property, suspended its payout of distributable income in the aftermath of the Japanese CMBS market’s collapse.