Sabana REIT

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Sabana REIT has entered into an agreement to acquire a Property located at 10 Changi South Street 2 for S$50m.

The Property is a purpose-built part single-storey/part sixstorey warehouse building with ancillary office areas. It is situated within the Changi South Industrial Estate, next to Changi Business Park, and has a gross floor area of 189,609 square feet.

The Property is a JTC leasehold estate of 30 + 27 years tenure commencing from 1 October 1994, with a remaining tenure of approximately 37 years.

The acquisition is in line with the Manager’s aim to invest in income producing real estate and real-estate related assets used for industrial purposes in Asia which provide attractive cash flows and capital growth opportunities so as to generate stable and growing returns to Unitholders.

Source: DBS

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Time: 9:00AM
Exchange: SGX
Stock: Sabana Reit(M1GU)
Signal: Bullish MACD Centerline Crossover
Last Done: $1.02

Source: UOBKH

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Sabana REIT: Leases and renews 2 out of 3 properties with master leases expiring in 2014.

The trust has signed a new master lease for 3A Joo Koon Circle and renewed the master lease of 6 Woodlands Loop, amounting to 295,443sf of gross floor area.

The new master lease of 3A Joo Koon Circle will commence on 22 Nov 14, while the renewed master lease of 6 Woodlands Loop will commence on 15 Dec 14, immediately upon the expiry of the earlier master leases.

The two properties represent 6.6% of the gross floor area of the overall portfolio, accounting for about 4.7% of portfolio value and an annualised rental
income of S$4.3m.

Source: Sabana REIT

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Sabana REIT ($0.965, down 1 cent), the world’s largest Islamic REIT, announced that it has inked a new financing arrangement with several banks for commodity murabaha facilities of up to S$243mln to refinance and roll over its existing facilities.

These new facilities will be fully utilised to refinance an existing three-year S$120mln debt and roll over a five-year commodity murabaha contract of up to S$75mln and a three-year revolving commodity murabaha facility of up to S$48mln.

This new funding arrangement will comprise additional facilities involving a two-year contract of up to S$90mln and a fi ve-year term of up to
S$30mln. for FY14.


Source: Lim & Tan

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Sabana REIT's FY14 net property income was 9.2% lower YoY at S$72.9m due to higher vacancies and property expenses.

DPU fell 21.9% lower YoY to 7.33 S-cents.

Source: OCBC

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Sabana REIT
Analyst Briefing Key Takeaways
SINGAPORE | REAL ESTATE (REIT) | NON-RATED NOTE

Sabana REIT announced its Full Year FY2014 (Y/E Dec) results on 21 January after market close. We dialled-in to the Analyst Briefing that was held on 22 January morning. These are the key takeaways from the briefing, as well as other information that investors might not be aware of about Sabana REIT.

Portfolio update – 7 properties are on multi-tenant lease, remaining 16 are Master lease.

11 Master leases to expire – The Manager is working to retain 7 of the 11 as Master leases, and to convert 4 to multi-tenant leases.

The four to be converted to multitenant are:
1. 15 Jalan Kilang Barat (High-tech Industrial, 97% underlying occupancy)
2. 23 Serangoon North Avenue 5 (High-tech Industrial, 62% underlying occupancy)
3. 18 Gul Drive (Chemical Warehouse and Logistics, 62% underlying occupancy)
4. 34 Penjuru Lane (Warehouse and Logistics use, 72% underlying occupancy)

No major Capital Expenditures this year – Minor Capex comes about when sub-dividing units and putting up partitions for multi-tenant buildings. The Manager guided that they are not expecting to do any major Asset Enhancement Initiatives (AEI) this year.

Manager experiences some level of customer stickiness – Cheaper rental elsewhere is not the prime consideration for tenants. Tenants consider location, productivity and relocation costs.

Strong visible acquisition pipeline to expand portfolio – The Manager noted that there is a visible presence of industrial properties available for REITs to acquire.

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

Source: Phillips

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Sabana REIT: Announces 12.1% Y-O-Y Growth In FY2014 Gross Revenue & 1.78 Cents DPU For 4Q 2014.

For 4Q 2014, Sabana REIT registered distributable income of S$12.9 million, which was 1.6% higher than that of 3Q 2014.

However, DPU in 4Q 2014 dipped by 1.7% compared to the previous quarter due to an increase in units issued mainly for the Trust's partial payment for the acquisition of 10 Changi South Street 2 in units.

The full impact for the DPU-accretive acquisition will be seen from 1Q 2015 onwards.

http://sabana.listedcompany.com/news.html/id/446974

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Time: 9:11AM
Exchange: SGX
Stock: Sabana Reit(M1GU)
Signal: Bullish MACD Crossover
Last Done: $0.91

Source: UOBKH

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Time: 9:53AM
Exchange: SGX
Stock: Sabana Reit(M1GU)
Signal: Bullish MACD Crossover
Last Done: $0.91

Source: UOBKH

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Sabana REIT's 1QFY15 NPI was up 1.1% YoY to S$18.6m while DPU of 1.78 S-cents was 5.3% lower YoY, mainly due to an increase in the number of units from a year ago.

Source: OCBC