Japan Residential ORD 10P Share Discussion Threads

[scbscb] 18/12/2014 19:21

I am not familiar with Alpha Pyrenees and certainly would not invest in anything to do with socialist France. An effective currency hedge should mean that a rise or fall in the nav in Yen terms is similar in pounds. Of course there will be a cost but it should be a tiny amount. For example I invest in Japan via UC62 UBS ETF (LU) MSCI Japan GBP hedged UCITS ETF and IJPH £ MSCI Jap hedged IJPH MSCI Jap hedged. These seem to manage the currency risk quite well.
Although I do not like trackers it is mad to invest in Japan without a currency hedge. The Japanese government has been pushing down the value (successfully) of the Yen for years. Perhaps they should link the Yen to the Rouble, or put Putin in charge of the Finance ministry!

[4spiel] 18/12/2014 10:03

This would be an interesting investment if it were hedged. remember Alpha Pyrenees

[scbscb] 17/12/2014 13:47

SteMiS On the contrary it is not even hard. It would be quite easy to make progress if they had in past few years hedged all their yen exposure. It has been obvious for years that Abeconomics main goal was to devalue the Yen.

Yet the board seems keener on boosting their ego by moving to the main market This will cost shareholders a small fortune in fees and compliance costs. The lawyers, banks and brokers will charge hundreds of pounds per hour to produce documents that are unreadable but tick a box. Private shareholders will suffer after the move to the main market due to higher market and compliance costs, stamp duty and loose inheritance tax relief. Of course the board will be egged on by their parasitic advisors – who will only be thinking of their fees.
The shareholders should vote against a move to the main market and sack the board and get directors that are focused on shareholder value.
Jeff

[stemis] 08/12/2014 10:06

And the relentless decline in the Yen continues. At 188.86 Y/£, the 31 August NAV of 59p has declined to 54p on a proforma basis

[stemis] 31/10/2014 10:56

It seems impossible for JRIC to make any progress against the relentless weakening of the Yen. Exchange rate is now 178, which knocks another 1.7p off the sterling NAV/share. If only I could get a Yen loan from the bank to invest in this.......

[stemis] 24/10/2014 14:15

Subsequent movement in Yen has knocked another 0.2p off NAV

[masurenguy] 23/10/2014 10:54

RNS Number : 0605V
23 October 2014
Japan Residential Investment Company Limited

Update on Net Asset Value

Japan Residential Investment Company Limited (AIM: JRIC) is a closed-ended Guernsey registered company established to make and hold investments in residential property in Japan.

The Net Asset Value ("NAV") for the Company as of 31 August 2014 (unaudited) was 59.0 pence per share (Yen102.0 per share) compared to 58.9 pence per share (Yen100.5 per share) as at 31 May 2014. This NAV reflects an increase of 0.9 pence from underlying profit which was partially offset by decreases of 0.7 pence due to net foreign exchange losses and 0.1 pence from net loss on fair value adjustments. The calculation of NAV is based on the most recent external valuation of investment properties as at 31 May 2014. The NAV in Sterling is determined using the Yen: Sterling exchange rate of JPY172.762, which was the prevailing rate as at 31 August 2014 (31 May 2014: JPY170.509).

[edwardt] 26/9/2014 13:42

looks cheap to me, despite the yen devaluation- hopefully some more write ups of the small portfolio holdings in coming months will help act as a catalyst to re-rate.

[masurenguy] 26/9/2014 10:31

Slipped a further 4% to 55p this morning on a paltry trading volume of just 22,000. At this price point the yield is now 6.5%, the discount to NAV is virtually 7% and the price fall against last years placing @63p is circa 12.5%. The shareprice has now drifted down by 18%, from 67p, over the past 12 months and by 8%, from 60p, over the past 6 months. If it should fall any further, then the next level of support would appear to be at around 51p.

[masurenguy] 24/9/2014 13:29

Like you Stemis, I like quiet threads too ! :-)

I think that this is attractively priced at the moment with a shareprice just below NAV of circa 59p and a dividend of 6.4% at the current level. I also like the fact that their gearing is quite low at 52% for a real estate business which will therefore increase NAV by twice the rate of any increase in Japanese residential property prices. I also think that the proposed move to the main market over the next 12 months could have a positive impact on valuation as this will bring the company onto a broader range of radar screens than at present.

Obviously the main potential downsides are any fall in the exchange rate of the Yen and any potential interest rate increase in Japan. Howver, like the UK, they have an I imbalance between residential property supply and demand but unlike the UK they are still in recovery mode from the catastrophic property crash some 20 years ago.

On balance I currently think that the positives outweigh the negatives and while we wait for a potential re-rating following the proposed main market listing, there is a still a very juicy dividend available to provide an attractive return on the investment here.

[stemis] 24/9/2014 10:25

He's the MD of Miton but doesn't run the funds that are invested in JRIC (which is David Jane).

Having said that, there's a lot to like about JRIC. I guess the big questions are:-

1. what is going to happen to the Yen/£ exchange rate. It's moved against JRIC since the year end by around 4.5%, therefore currently priced at a small (1%) discount to NAV.
2. how long will Japanese interest rates stay so low. Basically this is a play on the difference between retail property and debt yields (which is quite high at the moment).

I do like that there's only 4 posts here in 6 months though.......;-)

[masurenguy] 24/9/2014 01:35

Miton is run by Gervais Williams, who was named Fund Manager of the Year in 2013.

[coolen] 23/9/2014 22:37

agreed SteMis, but a flicker of institutional interest:

[stemis] 23/9/2014 09:57

Not much interest here

[topvest] 19/8/2014 20:33

Move to the main market looks like a good move. There is certainly some value here, particularly if the Yen/£ picture changes. The latest disposal shows what value there is on some of the properties.

[dashton42] 19/3/2014 11:47

For those with access, IC again reiterates its Buy advice on JRIC:

[dashton42] 21/1/2014 06:53

...And another mention in the Mr Bearbull column in Investors Chronicle, which I've only just spotted. Note that registration is probably required for this:

[dashton42] 20/1/2014 11:16

JRIC gets a brief mention in Investors Chronicle today, with a reiteration of the Buy advice:

[masurenguy] 25/10/2013 08:05

Interesting - they got this placing away very easily !

RNS Number : 2542R
Japan Residential Inv. Co. Ltd
24 October 2013

Completion of Placing

Pursuant to the announcement by the Company on 21 October 2013, the Company is pleased to announce that it has successfully placed a total of 24,444,224 new ordinary shares of 10 pence each (the "Placing Shares") at a price of 63 pence per share to raise total gross proceeds of approximately GBP15.4 million (the "Placing"). Application has been made for the Placing Shares to be admitted to trading on AIM and it is expected that the admission will take place at 8:00 a.m. on 28 October 2013. Further details of the Placing are set out in the announcement released by the Company on 21 October 2013. Liberum Capital Limited acted as sole broker and placing agent in relation to the Placing.

Following admission, the Company will have 211,944,224 ordinary shares in issue. Therefore, the total number of voting rights in the Company is 211,944,224. This figure may be used by shareholders as the denominator for the calculations by which they will determine if they are required to notify their interest in, or a change to their interest in, the Company.

As a result I took an initial position @64.5p yesterday

[jaws6] 18/9/2013 07:30

Good rns out on new buy

[pimsim] 24/6/2013 11:39

Yes, Aviva selling entire holding representing 27.4% of the total mcap.

[davebowler] 24/6/2013 10:10

It was a big placing by Liberum.

[pimsim] 21/6/2013 18:46

Very odd activity here today. 128m shares traded in 15 minutes, all down as ordinary trades.

The entire share issue is only 187m. At first I assumed it was a data error but other sites are showing the same sort of volume?

[davebowler] 20/6/2013 11:02

20 June 2013



Japan Residential Investment Company Limited

(the "Company")



Investment Property Valuation





Japan Residential Investment Company Limited (AIM: JRIC) is a closed-ended Guernsey registered company established to make and hold investments in residential property in Japan. The Company, its subsidiaries and entities in which it has a beneficial interest are referred to collectively as "the Fund".



The Fund portfolio was externally valued at ¥32,614 million (£213 million) as at 31 May 2013. The rate of property value growth rose to 3.9% for the year ended May 2013 on a like-for-like basis, compared with a 0.1% increase over the same period one year prior. Property value gains totaled ¥1,225 million (£8 million) on a like-for-like basis during the period. Yield compression and reduced operating expenses were the primary factors supporting valuation gains. During the six months ended 31 May 2013, portfolio value increased 1.4% on a like-for-like basis.



The unleveraged net yield of the portfolio (appraised net operating income over value) was 5.7% as at 31 May 2013, down from 5.9% at the same time one year prior. The Investment Adviser expects falling yields to continue exerting upward pressure on Japanese residential property prices driven by improving fundamentals, investor asset diversification requirements, and generous spreads between property income and financing costs.







Note: Sterling values are based on the exchange rate of ¥153.18/£1 as at 31 May 2013.







Enquiries:

KK Halifax Management Limited

Manager Edward Barrow [phone]



KK Halifax Asset Management

Investment Adviser Alec Menikoff [phone]



Smith & Williamson Corporate Finance Limited

Nominated Adviser Azhic Basirov

David Jones [phone]



Liberum Capital Limited

Joint Broker Richard Bootle [phone]



Westhouse Securities Limited

Joint Broker Alastair Moreton

Darren Vickers +44

[grim] 12/4/2013 19:58

A comment reported in our press last week following the expansion of Japanese Q.E. said that property would be a major beneficiary. Didn't say why.