For the past 2 years, the stock price of Saizen reit has remained mostly stable with slight declines. Just last week, its price went up suddenly which made a lot of investor curious. It rose 8.2% on Friday alone. What caused the stock price to rise so much?
Saizen reit released a statement thereafter saying that they had actually received a firm's offer in relation to the assets of Saizen Reit. This simply means there's a possibility of an acquisition from another firm which caused the unit price to rise.
Here's the announcement:
"the Manager wishes to announce that the Manager has received a firm offer in relation to the assets of Saizen REIT which the Evaluation Committee and the joint financial advisers are currently reviewing and evaluating. No definitive agreements have been entered into and there is no assurance that the offer will be accepted and that definitive agreements will be entered into."
However, it is still speculative at this stage on whether the acquisition will go through. With Saizen reit's net asset valued at $1.14 currently, any potential buyout may be higher than its current stock price below $1 thus the stock price rose from 80 cents plus to 93 cents on Friday.
Saizen Reit has a portfolio of income producing real estates. These properties are mostly residential properties. It is hard to find an investment in residential properties which was what attracted me to invest in Saizen reit in the beginning. The company is certainly trading at a discount plus residential properties are stable income producing assets especially in Japan where the majority of the population rent their homes.
Saizen Reit is my biggest investment to date as I've added my positions over the years at lower prices. I've collected dividends over the years while waiting for the Reit to unlock its true value. Whether there's an acquisition or not, this has still been a good investment till today.
Let's see what happens next.
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