Sabana REIT

[winston]

not vested

Valuation

With the surge of 31% in semi-annual review of average development charge rates for industrial and warehousing use on 1 September 2011, we opined that the revaluation of properties will boost the asset value to exceed its target of $1 billion portfolio even without any further acquisition towards the end of 2011.

Similar to the acquisition made last month, both the new acquisitions are not factored into our model as details of the lease agreement are not available.

The rental contributions from the three acquisitions will take place in the fourth quarter when the transactions are understood to be completed.

Anticipated DPU growth and revaluation gains will support the price from the external headwinds. Based on previous closing price, our target price represents a 26% potential upside. Thus, we maintain our BUY recommendation with an unchanged target price of $1.120.

Source: Phillips

http://www.remisiers.org/cms_images/res ... 091311.pdf

[winston]

not vested

Sabana Reit's Q3 DPU at 2.14 cts, in line with forecast
By ANGELA TAN

Sabana Real Estate Investment Management Pte Ltd, the manager of Sabana Shari'ah Compliant Industrial Real Estate Investment Trust, reported on Wednesday a distribution per unit (DPU) of 2.14 cents for the third quarter ended September 30, 2011.

The DPU of 2.14 cents is in line with its forecast.

Distributable income was at S$13.6 million.

'With our 3Q2011 DPU in line with our forecast, our cumulative DPU performance is on track to achieve our Forecast3 DPU of 8.63 Singapore cents for the financial year ending 31 December 2011,' Kevin Xayaraj, CEO and executive director of the manager said.

On September 30, 2011, the value of Sabana Reit's portfolio had appreciated by S$50.1 million from S$851.2 million a year ago. This equates to 5.9 per cent increase in property values in the one-year period.

http://www.businesstimes.com.sg/sub/lat ... 93,00.html?

[john_ric]

sabana is < 88 cents now.



declinoing day by day.

vested 3 lots.

[tonylim]

Above S$1.00 now.

[tonylim]

Sabana Reit Q2 DPU up 4.1% to 2.27cts by Carine Lee

Sabana Shari'Ah Compliant Reit on Thursday reported a 4.1 per cent increase in year on year distribution per unit (DPU) to 2.27 cents, exceeding forecast of 2.17 cents, for the fiscal second quarter ended June 30, 2012.

Unitholders can expectto receive their DPU on August 29, 2012.

Income available for distribution rose 4.7 per cent to $14.5 million from $13.85 million a year ago, on a 17 per cent increase in turnover to $20.35 million from $17.38 million a year ago. Net property income rose 15.3per cent to $19.08 million from $16.54 million a year ago.

The increase in revenue and property income was due to contribution from new properties acquired in the fourth quarter of 2011.


Source: Business Times

[winston]

not vested


Sabana REIT – Laggard Yield Play

(BUY/S$1.02/Target: S$1.15)
FY12F PE (x): 12.0
FY13F PE (x): 11.9

Laggard yield play. With current and forward yields at 9.3-9.4%, Sabana REIT’s (Sabana) yields are attractive compared with the yields for AREIT (5.7%), AIMSAMP (8.5-8.9%) and Cambridge Industrial Trust (8.1-8.5%).

Acquired a property for S$61m. Sabana is buying a light industrial property in Singapore for S$61m. The property, at 23 Serangoon North Ave 5, is a 5-storey light industrial building with mezzanine level with a gross floor area of 159,384sf. The valuation and cost of the property is S$61m, or at S$383psf of GFA.

Upgrade to BUY (from HOLD) with a higher target price of S$1.15 (from S$1.11), based on the dividend discount model (required rate of return: 8.3%, terminal growth: 1.5%).


Source: UOBKH

[winston]

not vested

Sabana Shari’ah Compliant REIT - 3Q12: Highest yielding S-REIT.

(SSREIT SP/BUY/S$1.13/Target: S$1.25)
FY12F DPU Yld (%): 8.2
FY13F DPU Yld (%): 8.4

(Sabana) reported a 3Q12 distributable income of S$15.0m or a DPU of 2.34 S cents (+9.3% yoy, +3.1% qoq).

9M12 DPU of 6.86 S cents is in line with our expectations, accounting for 73.0% of our 2012 DPU estimates.

3Q12 revenues reached S$20.3m (+16.7% yoy, -0.2% qoq) and Net Property Income (NPI) hit S$19.1m (+16.6% yoy, +0.2% qoq) due to the acquisition of five properties in 4Q11 and the completion of another acquisition in 3Q12.

Distributable income increased 3.4% qoq to S$15.0m due to higher interest expense arising from the new acquisitions.

Assets under management touched S$1.1b with the completion of the acquisition of 23 Serangoon North Ave 5 at S$61m on 1 October.

Early refinancing to stretch debt maturity to 3.5 years from 2.2 years in end-11 was completed in 3Q12, while the average all-in financing costs fell 50bp yoy to 4.3%.

By refinancing early, Sabana will not have any debt due in 2013, and will have also managed to term out its debt through to 2017.


Maintain BUY with a lower target price of S$1.25 (from S$1.29), based on DDM (required rate of return: 7.8%, terminal growth: 2.0%).

We have tweaked 2012-14 DPU by -2 to +1% to factor in lower interest costs together with the dilution from the conversion of the CB.

Key risks include slower economic growth impacting tenants and underlying occupancies.


Source: UOBKH

[winston]

Investment Actions?

We fine-tuned our financing assumptions and revised forecasted payout ratio to 100%. These raised our DPU by 6.5% on average over the period of 2012 to 2016
and lifted our price target up to S$1.150.

Anticipated FY12 revaluation gains through the annual property valuation in fourth quarter could be a re-rating catalyst on the price based on P/B basis.

However, we think there is less scope for further yield spread compression and expect limited upside to our new price target of S$1.150.

From the risk-reward standpoint, the current price does not warrant an accumulate call in our view, we therefore downgrade to neutral despite the compelling
forward yield of 7.8%.

Source: Phillips

http://www.remisiers.org/cms_images/res ... 121022.pdf

[winston]

not vested

Sabana Shari’ah Compliant REIT (SSREIT SP) BUY

Price/Tgt: S$1.155/S$1.30
Mkt Cap: S$740m/ US$605m
Daily Vol: US$1.1m
1-Yr Hi/Lo: S$1.17/S$0.875

4Q12 Results Flash: DPU of 9.28 cents; results in-line with expectations

Sabana Shari’ah Compliant REIT (Sabana REIT) reported a 4Q12 distributable income of S$17.4m or a DPU of 2.18 cents, bringing the full year DPU to 9.28 cents in line with our expectations.

FY12 revenues were at S$81.8m (6.3% yoy, 18.7% above forecast) while Net Property Income (NPI) touched S$76.9m (53% yoy, 16.3% above forecast) mainly due to mainly due to contribution from the Acquisition Properties.

Management noted that the impact on Sabana REIT from the recent industrial property measures is expected to be minimal it holds its properties on a long term basis. The measures will potentially weed out speculators and moderate industrial property prices, particularly strata-title units.

Portfolio occupancy remains 100% for the 20 properties under master-lease agreements and 98.4% for the multi-tenanted property at 9 Tai Seng Drive.

The total asset value now exceeds S$1.1b, 33% higher than the initial IPO portfolio post the recent acquisition of 23 Serangoon North Avenue 5 for S$61m coupled with a net revaluation gain of S$25.3m.

Valuation. We have a BUY recommendation on Sabana REIT with a target price of S$1.30, based on the dividend discount model (required rate of return: 7.5%, terminal growth: 2.0%). Sabana REIT is trading at a yield of 8% (vs 5.7% for the sector).

We will provide further updates following the management briefing.

Source: UOBKH

[winston]

not vested

Sabana Shari’ah Compliant REIT- 4Q12: Looking to lease renewals in 2013.

(SSREIT SP/BUY/S$1.19/Target: S$1.30)
FY13F DPU Yld (%): 8.1
FY14F DPU Yld (%): 7.3

Results in line with expectations. Sabana Shari’ah Compliant REIT (Sabana) reported 4Q12 distributable income of S$15.4m and DPU of 2.41 cents (+11.1% yoy, +3.0% qoq).

Full-year DPU of 9.28 S cents is in line with our expectations, accounting for 99.8% of our 2012 DPU estimate.

Looking to lease renewals in 2013. Sabana will face the expiry of 45% of its leases by gross revenue in 2013. This is largely due to the falling off of the master leases but we expect the majority of the leases will be supported by underlying tenancies.

Moreover, management also shared that the underlying occupancy at its largest asset, 151 Lorong Chuan, reached 96% in 4Q12, up 14ppt from 82% in 3Q12, reducing the risk of a fall in income when the master lease expires in end-13.

Maintain BUY and target price of S$1.30, based on DDM (required rate of return: 7.45%, terminal growth: 2.0%).


Source: UOBKH