Japan's REITs To Increase Their Property Purchases Next Year By $12 Billion

AS for the Japanese economy's efforts to help the economic recovery to
rebound and support the growth to exist from its hurdle, where Japan's
Real Estate Investment Trusts (REITs) announced today that they are
going to increase their investment and double property purchases
during the next year by 1 trillion yen (12 billion American dollars)
by increasing bond sales amid falling interest rates for three years.

Moreover, Japan's Real Estate Investment Trusts sold 179.5 billion yen
of bonds during last year which was the most since 2007, while this
investment trusts' purchases will break the highest level in four
years, comparing with as much as 600 billion yen current year that
started in April 2010, supported by the Bank's stimulus, where the
Bank's purchasing plan will help them to make this process easier, and
it aims to increase their capital.

On the other hand, the Real Estate Market created in 2001 to be a
financial tool (which is a pools assets into trade-able securities) to
help the economic growth, and to support J-REITs' investments, while
Investment Trusts account about 20% of Japan's 45 trillion yen
securitized real-estate market.

The Governor Mr. Shirakawa and his board leaders, decided to fix the
rates steady at the lowest level between zero and 0.10%. Further,
consumer price index in Japan is continuing to fall, pushing the Bank
of Japan to keep the interest rates between zero and 0.10% at least
for two more years, to fight deflation.

During the last two years land prices in Japan dropped to the lowest
level. Real estate trusts get most of their profit from rental income,
paying the majority of it as dividends. While investors receive a
yield that is competitive with bonds, they can also benefit should the
value of the underlying properties rises.

Investors in J-REITs including units of Mizuho Financial Group Inc.,
Japan's third-largest bank by market value, and Tokio Marine
Holdings Inc., the nation's second-largest casualty insurer, have
already began raising funds to invest in REIT shares. Mizuho Asset
Management Co. set up a 17.7 billion yen fund this month and Tokio
Marine Asset Management Co. started a 21.2 billion yen fund in
November.

Increasing Investment Trusts' investment will lead the stock market to
rise as much as 40% this year.
Japan's tertiary industry index inclined 0.6% in November, following
an incline by 0.5% during the preceding month in October, which was
revised to 0.3%, where the market's expectations estimated of 0.5%
Source: ActionForex.Com