Japanese REITs good long term buying opportunity

Discussion in 'Wall St. News' started by amylase, Feb 14, 2008.

  1. amylase

    amylase

    Japan's land prices have been falling for 17 years, but prices in central Tokyo have started to rise since 2005.

    There are 41 listed J-REITs on Tokyo stock exchange, more than half of them are trading at below their net asset value.

    I believe the fall of J-REIT is caused by cash stripped U.S. investment banks selling their foreign holdings (at great loss) to finance their balance books.

    The dividend yield on J-REITs are extremely stable (they are required by law to distribute 90% of income at least) and have become mouth watering due to depressed prices.

    For example, Re-Plus REIT, Joint REIT, yields appx. 9% and MID reit, DA Office, LaSalle japan (formerly eAsset) also have solid yields of around 8%.

    I am looking to buy into J-REITs. What do you guys think?