Japan Residential (JRIC) delivered a solid enough performance last year, but a 15 per cent fall in the yen/sterling exchange rate meant that net assets lost ground in sterling terms. Without the rate swing, unrealised valuation gains amounted to £7m, while a further £843,000 was booked on disposals at a 34 per cent premium to book value, which helped lift net assets in yen terms by 5.7 per cent.
Average occupancy rates within its Japanese residential property portfolio eased back slightly, from 95.6 per cent to 95.0 per cent. But gross rental income still moved up 5 per cent to £17.6m, thanks largely to an expanded portfolio. During the year, the fund purchased nine residential apartment buildings for £58.9m, with an estimated prospective net operating yield of 5.2 per cent.
Demand for residential property in Japan remains brisk, while land constraints and rising construction costs have served to limit the amount of new supply. New rental housing starts in Greater Tokyo grew by just 1.3 per cent last year - well below the long-term average. This served to push up house prices by over 5 per cent.
Analysts at Liberum are forecasting net assets per share of 61.3p for the year-end.
| JAPAN RESIDENTIAL INVESTMENT COMPANY (JRIC) | ||||
|---|---|---|---|---|
| ORD PRICE: | 55.25p | MARKET VALUE: | £117m | |
| TOUCH: | 55.25-57.5p | 12-MONTH HIGH: | 63p | LOW: 51p |
| DIVIDEND YIELD: | 6.5% | TRADING PROPERTIES: | nil | |
| DISCOUNT TO NAV: | 1.5% | |||
| INVESTMENT PROPERTIES: | £249m | NET DEBT: | 108% | |
| Year to 30 Nov | Net asset value (p) | Pre-tax profit (£m) | Earnings per share (p) | Dividend per share (p) |
|---|---|---|---|---|
| 2010 | 65.2 | -11.6 | -8.5 | 2.5 |
| 2011 | 71.2 | 7.8 | 4.0 | 3.3 |
| 2012 | 69.7 | 15.2 | 7.8 | 3.6 |
| 2013 | 58.7 | 15.9 | 7.9 | 3.6 |
| 2014 | 56.1 | 15.6 | 6.8 | 3.6 |
| % change | -4 | -2 | -14 | - |
Ex-div: 26 Mar Payment: 29 Apr | ||||
