Japan quake impact on cash flows

It is important to continue to monitor relevant properties to determine the impact on profitability and values of Japan CMBS of the March 11 earthquake.

The transactions involve 90 properties in the 8 affected areas -- 6 prefectures in the Tohoku region, and the prefectures of Ibaraki and Chiba.

Reports on post-quake conditions for 37 of the 90 properties, none were severely damaged. And 8 of the 9 hotels have suspended operations or are experiencing disruptions, and this will have a short-term impact on cash flows.

Confirmation on the conditions and performance of the affected properties will continue to monitor on the affected areas and the possible effect of both property and loan performances.