On the same day that prime minister Shinzo Abe won upper-house elections to take full control of Japanese parliament, London-listed landlord Japan Residential Investment Company (JRIC) unveiled half-year results that underlined both the appeal and difficulty of investing in Japan under the so-called 'Abenomics'.
Even as the company announced an acceleration in its portfolio growth rate and disposals at a 20 per cent premium to carrying value, its book value fell 14 per cent in sterling, to 62.4p a share. One plank of Mr Abe's reforms involves radical monetary easing, including buying real-estate shares. This has led to a surge in the local property market, but it has also depressed the yen. Because JRIC is an unhedged vehicle, UK-based investors have borne the full force of the plunging exchange rate. Underlying profit per share fell from 2p to 1.7p - below the dividend payout of 1.8p.