TIDMJRIC

RNS Number : 4744H

Japan Residential Inv. Co. Ltd

20 June 2013

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 Yen32,614 million (GBP213 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 Yen1,225 million (GBP8 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.

Portfolio valuation trend by region for year ending May (like-for-like basis):

 
             Change in Value YoY (%)     Property Yield 
                                               (%) 
            2011      2012      2013        May-2013 
 Tokyo      -1.4       0.5       4.9          5.1 
 Osaka      -2.8       0.4       2.9          5.8 
 Nagoya     -2.5      -1.5       2.9          6.2 
 Other      -0.3       0.0       3.5          6.6 
 Total      -1.8       0.1       3.9          5.7

Note: Sterling values are based on the exchange rate of Yen153.18/GBP1 as at 31 May 2013.

Enquiries:

KK Halifax Management Limited

Manager Edward Barrow +65 6593 8904

KK Halifax Asset Management

Investment Adviser Alec Menikoff +81 (0)3 5563 8771

Smith & Williamson Corporate Finance Limited

   Nominated Adviser                                    Azhic Basirov 
          David Jones                         +44 (0)20 7131 4000

Liberum Capital Limited

Joint Broker Richard Bootle +44 (0)20 3100 2222

Westhouse Securities Limited

   Joint Broker                                              Alastair Moreton 
          Darren Vickers                     +44 (0)20 7601 6100

This information is provided by RNS

The company news service from the London Stock Exchange

END

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