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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