Interest rate is high by current Japanese standards. Understand...

Interest rate is high by current Japanese standards. Understand that exchange rate works favourably for income, against them for debt. They only have a couple of "incredibly long term leases" and many are not without risk - eg I would not consider 8 levels of health club an A grade tennant in this economic environment. Devaluation of up to 20% over the past 12 months for some regional holdings suggests at least these were in bubble. Many locals think Tokyo commercial is also in a bubble and that the foreigners paid too much. Unless there are publicised bankruptcies it is hard to get a complete idea of distress in the commercial Japanese property market as >90% of all commercial properties are sold off market. A not insignificant part of BJT's distributions to date have come from commercial property sales and I am unaware of any sales from BJT in the current year. In terms of the overall Japanese property market, accounting year end is March 30, this will be the telling time for the Japanese listed REITS (the ones that are not already formally bankrupt that is). Japanese banks have tried not to push the issue with lenders as they don't want to recognise the bad debts in their 09 accounts and almost all creditor court hearings have been pushed out to April to help achieve this.