Saizen REIT proposes no Q2 distribution after reporting loss

Mainboard-listed Saizen REIT on Thursday said it has proposed not to declare any distribution for its second quarter after reporting a loss.

Net loss for the three months ended in December was 94.3 million yen or about S$1.48 million. That was in sharp contrast to a 214.6 million yen profit made over the same period a year ago.

Saizen REIT said it saw a loss in the divestment of its properties, leading to the overall drop in earnings.

Its bottomline was also impacted by a lower revenue on the back of decreased rental rates, as well as an increase in other expenses.

With the stabilisation of the financing environment in Japan, Saizen REIT added that it is hopeful of making progress in securing new financing.

It said it will start accumulating cash for distribution in the last quarter of its current financial year and resume distribution for the period ending in June 2010.

Source : Channel NewsAsia – 11 Feb 2010

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