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Japan Residential hints at planned reforms

Japan Residential Investment Company has published results for the year ended 30 November 2014 that show its net asset value fell by 2.6p to 56.1p. This fall was entirely down to the weakness of the yen against sterling. in yen terms the net asset value rose by 5.7% over the year.

The dividend for the year was maintained at 3.6p, which is an achievement given the yen weakness which is reflected in a fall in the company’s earnings per share from 7.9p to 6.8p.

The gearing ratio increased from 37.1% to 50.3% as they used debt (and the proceeds of an equity fund raise that they carried out in the previous financial year) to fund an expansion of the portfolio.

Occupancy fell from 95.6% to 95.0%. Nevertheless they say the total property return, as measured by the Investment Property Databank (IPD), was 9.7%, outperforming the IPD Benchmark by 1.0%. For the seven years ended May 2014, the portfolio has outperformed the IPD Benchmark by 1.2% p.a.

The Board hopes to move the fund’s listing to the main market and hints in the statement that they have ” identified a number of initiatives which will help ensure that the Fund is well positioned for its next growth phase with a robust and efficient operating structure” these will be announced in due course.

JRIC : Japan Residential hints at planned reforms

 

 

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