News, Events and Media
Japan Hotel and Resort announced to change their earnings forecast
Japan Hotel and Resort sponsored by Goldman Sachs announced that they decided to change their earnings forecast in the period ended at the end of August this year because they see their dividends drop by more than 5% compared to the previous forecast owing to the reduction of hotel demand caused by the disaster. They haven’t posted the exact updated figures in the still unclear situation.
Moody’s Japan comments on the direct loss caused by the earthquake
Moody’s Japan released their comment saying that their estimated direct loss caused so far by the earthquake within all 18 REITs they rate is less than 0.1% of their total portfolio. Further loss could be anticipated caused by the decrease of cash flow/weaker business volume however, Moody’s do not expect such loss to be material and that none of the operators so far have expressed their concerns during the respective interviews Moody’s have conducted with the REITs during the last couple of weeks.
DTZ released their report about the impact of the earthquake
DTZ released their report about the impact of the earthquake on the Tokyo office market. There will be only a limited and short term impact on the Tokyo office market based on their preliminary analyses, even though their original estimates also showed downward trend this year.
9.0-magnitude earthquake in Japan
A 9.0-magnitude earthquake occurred off the northeastern coast of Japan on 11 March (Friday). The earthquake, with its epicenter in the Tohoku-Sanriku area, was the largest ever recorded in Japan.
MPC Capital AG stops placement of real estate fund Sachwert Rendite Fonds Japan
MPC Capital AG, a Hamburg based arranger of closed end funds announced that the firm will stop the placement of its Japan real estate fund Sachwert Rendite Fonds Japan. The fund that MPC has been placing since August 2008 is invested with about Euro 170 Million in 9 mainly regional properties used as shopping, sports and entertainment facilities. MPC gives the uncertainty in Japan after the earthquake as a reason why they decided to stop the further placement now.
Union Investment Real Estate GmbH temporarily suspended redemption and issue of units for UniImmo: Global fund
Union Investment Real Estate GmbH announced that they had temporarily suspended redemption and issue of units for UniImmo: Global fund, because they judged they cannot currently assess the impact of the earthquake and the nuclear accident in eastern Japan. The properties the fund owns in Japan account for 14% of its total property asset and are all locate in Tokyo. The properties suffered no significant physical damage.
United Urban cancelled the acquisition of 5 properties
United Urban sponsored by Marubeni cancelled the acquisition of 5 properties for JPY 24.1 billion and JPY 65 billion of public share offering. They cancelled the PO because of their unstable share price after the earthquake. They planned to decide the issuing price the week after the accident. Accordingly, they cancelled the deals because they intended to use some of the money for the acquisitions.
Nikkei Real Estate on the impacts of the earthquake
Nikkei Real Estate organized the announcements about the impacts of the earthquake that hit northeast Japan on March 11 from each J-REIT as of the morning of March 14 and found out that there was no significant damage to the properties. By the end of March 14, all REITs finished announcing the status of their properties and no major physical damage was seen, though 3 retail properties owned by Mitsubishi UBS REIT stopped operation and some logistics properties owned by Mitsui Trading Company REIT continue to be investigated.
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