Saturday, January 19, 2013

Sabana REIT 4Q 2012

Sabana REIT has just announced its results for 4Q2012. A distribution of 2.41c is declared for the period 1 Oct 2012 to 31 Dec 2012. This is higher than the previous quarter of 2.34c. On the following day after the results, Sabana REIT increased by 3c, closing at 1.185.

The NAV is currently about 1.07. The gearing is currently 37.6% which makes it difficult to acquire new properties without a private placement or rights issue.

Leases expiring
44.7% (based on gross revenue) of the leases will be expiring this year. This could work as a double-edged sword. If leases are renewed with higher rents, we could see higher dpu. However, it leases are not renewed and Sabana is unable to find a new tenant, the dpu will definitely fall.

High Yield
Sabana REIT has a yield of about 8%, one of the highest yield among its S-REITs peers. Hopefully, with higher rentals after the lease renewal, we will see the DPU being increased again.

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