Sabana REIT

Re: Sabana REIT

Postby winston » Wed Apr 22, 2015 4:15 pm

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Time: 2:05PM
Exchange: SGX
Stock: Sabana Reit(M1GU)
Signal: Bullish MACD Crossover
Last Done: $0.9


Source: UOBKH
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Re: Sabana REIT

Postby winston » Tue May 26, 2015 9:56 am

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Negatives Priced In, Upgrade To BUY

Sabana’s recent price slump presents a buying opportunity as negatives are more than priced in.

Investors are jittery over its 11 master leases, or nearly 46% by NLA, due to expire in Nov 15.

Our worst scenario of occupancy for the expiring master leases dropping to 50% still implies a healthy 7% yield.

Upgrade to BUY with a lower DDM-based target of S$0.95 as we factor in the underlying 61-89% occupancies.

Master lease renewal/conversion in 4Q15 will be a key re-rating catalyst.

Source: UOBKH

http://research.uobkayhian.com/content_ ... 22b536d449
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Re: Sabana REIT

Postby winston » Tue Jul 14, 2015 12:25 pm

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Time: 9:14AM
Exchange: SGX
Stock: Sabana Reit(M1GU)
Signal: Bullish MACD Crossover
Last Done: $0.855

Source: UOBKH
It's all about "how much you made when you were right" & "how little you lost when you were wrong"
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Re: Sabana REIT

Postby winston » Mon Jul 20, 2015 11:31 am

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Time: 11:13AM
Exchange: SGX
Stock: Sabana Reit(M1GU)
Signal: Resistance - Breakout with High Volume
Last Done: $0.88

Source: UOBKH
It's all about "how much you made when you were right" & "how little you lost when you were wrong"
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Re: Sabana REIT

Postby winston » Mon Jul 20, 2015 12:46 pm

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Analyst briefing key takeaways

The portfolio is facing concentrated lease expiries. 51.3% of the portfolio NLA is due for renewal in 2015.

Eleven Master-leases expiring this year; three to be converted to Multi-tenanted. Of the eleven Master-leases that are expiring this year, one will be at the end of
3Q15 while the remaining ten will be in 4Q15. The Manager is negotiating with eight of the eleven for renewal of the Master-leases, and has plans to convert
three to Multitenanted leases.

Underlying Occupancy of Master-lease properties to be converted to Multi-tenanted Property Use 2Q15
15 Jalan Kilang Barat High-tech Industrial 94%
23 Serangoon North Avenue 5 High-tech Industrial 62%
34 Penjuru Lane Warehouse & Logistics 94%
Source: Sabana REIT

Pro-active lease management to achieve better lease expiry profile going forward. The Manager highlighted that after the Master-leases are renewed, the lease
expiry profile will be better distributed, thus reducing the concentration risk in a single year.

Investment Action
No stock rating or price target provided, as we do not have coverage on Sabana REIT.

Source: Phillips
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Re: Sabana REIT

Postby winston » Wed Aug 19, 2015 9:38 am

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Sabana Shari'ah Compliant REIT (SSREIT SP)
Moment Of Truth Beckons

The market’s pessimism over Sabana’s master lease renewals presents a buying opportunity as negatives are more than priced in. Investor concerns over its 11 master leases, expiring this November, may be overblown.

We understand that the renewals (stemming from 2013) are a few steps shy of conclusion. Our built-in worstcase scenario of an occupancy drop to 50% for the affected master leases still implies a healthy >7% yield.

Maintain BUY with a DDM-based target of S$0.95.

WHAT’S NEW

The sharp 17% decline in share price ytd reflects investors’ wariness over the company’s efforts to renew its expiring eight master leases and is overblown. This presents a buying opportunity as negatives have been factored in.

STOCK IMPACT

Negatives more than factored in. During our post-results discussion, management reassured us of the impending completion of the renewal of eight of its 11 expiring master leases (46% by NLA).

The company is looking to convert three of the remaining properties into multi-tenanted buildings with underlying occupancies from 62-94%.

Management alludes that they are a few steps shy of putting pen to paper. 23 Serangoon North Ave, 34 Penjuru Lane, and 15 Jalan Kilang Barat have master leases expiring this November, and are slated for multi-tenanted conversion.

The company was similarly plagued by lease renewals in May 13, and saw its share price beaten down by 21% in the span of a month. Our worst-case scenario assumes occupancies of 50% for the expiring master leases, still implying a healthy >7% yield.

TC’s ruling that requires a 70% occupation by a master-tenant, the environment for leasing is quite challenging, especially for tenants that qualify as master-tenants (occupying more than 1,500 sqm). However, Sabana’s high tech industrial space (44% by portfolio NLA) should see some pick-up as the domestic business park space sees substantial pre-commitment.

Being a close substitute, the high tech portfolio should see some scope for spillover demand, in particular 151 Lorong Chuan (30% of portfolio valuation). In addition, increased appetite from pharmaceuticals and technology industries should bode well for the high tech industrial space this year.

Recycling of under-performing assets and acquisition-led growth key to management’s strategy. Apart from the company’s drive to renew master leases, management also has capital recycling in its sights, as the divestment of underperforming assets and pursuit of yield-accretive acquisitions remain at the core of its plans.

Debt headroom of $45m (assuming a comfortable 40% gearing limit) would support domestic acquisitions, likely funded by a combination of debt and equity. Management reiterated their reluctance to stretch their gearing levels, preferring to remain at a more prudent 40%.

Future endeavours to smoothen lease expiry profile. Management continued to highlight diligence in monitoring expiring leases. Going forward, the company will prevent lease expiry from exceeding 30-35% at any given year.

EARNINGS REVISION/RISK

Key risks include:
a) Inability to renew the eight master leases due Nov 15
b) Inability to ensure master tenants occupy 70% of GFA.

VALUATION/RECOMMENDATION
Maintain BUY with a target price of S$0.95 based on DDM (required rate of return: 8.3%, terminal growth: 1.5%).

SHARE PRICE CATALYST
Renewal of master leases.

Source: UOBKH
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Re: Sabana REIT

Postby winston » Wed Sep 09, 2015 2:22 pm

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We hosted Sabana Industrial REIT (SSREIT SP) to our Asian Sharia Investment Conference in Kuala Lumpur yesterday.

Sabana anticipates market conditions to remain challenging and intends to actively manage its lease expiry profile and continue to be aggressive in its marketing and leasing efforts to increase the Trust’s portfolio occupancy.

Sabana is also looking for potential yield‐accretive acquisition opportunities both locally and abroad, as well as development projects and asset enhancement initiatives.

It intends to divest underperforming or non‐core assets to recycle capital.

On the 11 master leases expiring in year 2015 (1 at end‐3Q and 10 in 4Q), the group is in the process of renewing or securing new master leases for 8 of them.

The remaining 3 properties will likely be converted into multi‐tenanted buildings.

Clients are concerned about the impact of JTC subletting policy on Sabana's master leases.

Master leases currently accounts for 58% of portfolio NLA.

CEO explains why converting from single user asset (master lessee) to multi-tenanted buildings (MTBs) is burdensome to the REIT.

On top of physical alterations, the REIT also needs to absorb land-rent, insurance, maintenance etc.

We currently do not have a rating on the REIT.

Source: RHB
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Re: Sabana REIT

Postby winston » Sun Sep 27, 2015 3:16 pm

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Sep 7, 2015

Management strategy and outlook

• The Manager anticipates market conditions to remain challenging. However, it will actively manage Sabana REIT’s lease expiry profile and continue to be aggressive in its marketing and leasing efforts to increase the Trust’s portfolio occupancy.

• Simultaneously, the Manager will also continue to evaluate potential yield‐accretive acquisition opportunities both locally and abroad, as well as development projects and asset enhancement initiatives to grow the Trust’s portfolio.

• The Manager also intends to divest underperforming or non‐core assets to recycle Sabana REIT’s capital and is evaluating opportunities to do so.

• On the capital management front, the Manager will keep on exploring new ways to diversify funding sources, to improve borrowings maturity profile, and to further strengthen the Trust’s capital structure.

• On the 11 master leases expiring in year 2015 (1 at end‐3Q and 10 in 4Q), the Manager is in the process of renewing or securing new master leases for 8 of them.

The remaining 3 properties will likely be converted into multi‐tenanted buildings.

The Manager will release more information once the master leases have been officially concluded.
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Re: Sabana REIT

Postby winston » Fri Oct 16, 2015 2:55 pm

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Sabana Shari'ah Compliant REIT

Analyst Briefing Key Takeaways

What is the news?

Sabana Shari'ah Compliant REIT (Sabana REIT) announced its 3Q FY15 (Y/E Dec) results on 15 October after trading hours. We tuned in to the Analyst Briefing conference call earlier this morning.

Eight master leases expiring in 4Q15 (all on 26 Nov) are in the advanced stages of Master-lease properties to be converted to Multi-tenanted will be renewed by the existing master tenant, while negotiations for the remaining two bring more clarity to its portfolio occupancy and income going forward.

Acquisitions to remain Singapore-focused. The Manager guided that any future acquisitions will be in Singapore. These will be of the sale and leaseback type with completing the renewal of the leases. The Manager guided that six of the properties are with the main sub-lessee. This is a positive development for the REIT as it would minimum tenure of five years.

Outlook remains challenging. The upcoming supply of industrial space is making the current situation very much a tenant's market. The Manager has some confirmed non-renewals from tenants.

Source: Phillips
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Re: Sabana REIT

Postby winston » Mon Nov 30, 2015 7:48 pm

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UPDATE ON MASTER LEASES EXPIRED IN 2015

Singapore, 26 November 2015 - Sabana Real Estate Investment Management Pte. Ltd., the Manager of Sabana Shari’ah Compliant Industrial Real Estate Investment Trust (“Sabana REIT” or the “Trust”), wishes to update unitholders that out of the eleven (11) master leases expired in 2015, six (6) master leases have been signed, three (3) properties converted into multi-tenanted buildings, one (1) being divested, and the remaining one (1) is temporarily vacant, pending the outcome of the evaluation of options.

http://sabana.listedcompany.com/newsroo ... TYYO.1.pdf
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