Saizen – Lim & Tan

• No wonder that Argyle Street Management, the single largest shareholder of Saizen REIT (with 8.97%) has been a persistent seller of the stock in the past few weeks.
  
• One off refinancing costs as well as the the rapid weakening of the Japanese Yen has caused 3Q to Mar ’13 operating income to plunge 55% yoy and 74% qoq to only S$1.94mln.
  
• And the weakening of the Yen against S$ caused the NAV to fall from 30 cents to 25 cents as at Mar ’13.
  
• With rental collection in Japanese Yen while dividend distributions in S$ as well as the big plunge in operating income, June ’13’s distribution per unit will be negatively impacted.
  
• This suggest down-side risks to its upcoming 6 months dividend distributions expected for half year to June ’13.