Sabana Shari'ah REIT

(01-06-2011, 08:11 PM)freedom Wrote: a trust fully funded by rights issue, is bad management of money...a better run company will use low cost debt to profit more.

yup but alot probably dun see it that way. debt is equal to prostitution.

debt is not evil. proper level of debt can ensure a good relationship with the financial industry, as well as leverage on lower borrowing cost to improve return on equity.

(01-06-2011, 04:59 PM)Nick Wrote: It would be interesting to calculate which REIT has provided the highest average annual returns to its IPO unit-holders and whether are there any with negative returns. I compiled similar stats for business trust and all but two under-performed fixed deposits !

Yes it would, Nick.

Offhand, I can share with you some yield figures, taking into account rights issue I have participated since listing. Absolute yield is capital gain. Aggregate yield includes all distributions. The p.a. figures are just the yield divided by the no of yrs since listing.

1) SuntecREIT (no Rights or PO issue since listing)
Absolute yield = 50%; 7.79% p.a.
Aggregate Yield = 106%; 16% p.a.

2) Mapletree Log (1 Rights in '08+ 1 PO in '10)
Absolute yield = 24.9%; 4.27% p.a.
Aggregate Yield = 52%; 8.93% p.a.

3) Starhill Gbl fka MACQUARIE MEAG PRIME REIT(Rights in '09)
Absolute yield = 14.9%; 2.6% p.a.
Aggregate Yield = 40.8%; 7.2% p.a.

4) FrasersComm fka Allco (Rights in '07 and '09)
Absolute yield = -43%; -8.4% p.a.
Aggregate Yield = -26%; -5.3% p.a.

5) FrasersCT (no Rights or PO issue since listing)
Absolute yield = 42.7%; 8.8% p.a.
Aggregate Yield = 74%; 15.4% p.a.

6) CDL HTrust ( PO in '07)
Absolute yield = 99%; 20.5% p.a.
Aggregate Yield = 131%; 27.2% p.a.

7) AIMSAMP I Reit fka MacArthurCook I REIT (Rights in '09 and '10)
Absolute yield = -34%; -8.4% p.a.
Aggregate Yield = -18%; -4.5% p.a.

8) PLife (no Rights or PO issue since listing)
Absolute yield = 42.2%; 11.2% p.a.
Aggregate Yield = 61%; 16.3% p.a.

9) Saizen REIT (Rights in '09)
Absolute yield = -55%; -15,4% p.a.
Aggregate Yield = -50%; -15.9% p.a.

10) CLT (no Rights or PO issue since listing)
Absolute yield = 6.8%; 6.3% p.a.
Aggregate Yield = 14.6%; 13.5% p.a.

11) Mapletree Industrial (no Rights or PO issue since listing)
Absolute yield = 24.7%
Aggregate Yield = 27.3%

Pls note that for some of the above REITs, I added position along the way and for Saizen I had exercised warrants. So the above may not be a true reflection of the REIT's performance since listing.

Regardless, the above clearly shows that most REITs are giving more than decent returns to unitholders.

From the above, my top 3 performing REITs are CDL Htrust, PLife REIT and Suntec REIT.

If debt is not properly managed, it can be like drugs. Many corporate leaders bankrupt because of the drugs of debts.

(02-06-2011, 07:20 AM)freedom Wrote: debt is not evil. proper level of debt can ensure a good relationship with the financial industry, as well as leverage on lower borrowing cost to improve return on equity.

Debt is only bad if you binge on it.

Sabana REIT: Second Quarter Results In Line With Forecast.
27 Jul 2011 22:52


Sabana Shari'ah Compliant Industrial Real Estate Investment Trust announced a distributable income of S$13.8 million for the period from 1 April 2011 to 30 June 2011. Based on its 635,069,362 of units entitled to distribution, Sabana REIT's distributable income translates into a Distribution Per Unit of 2.18 Singapore cents for the quarter, exceeding its quarterly forecast DPU of 2.15 cents per unit...

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Presentation Slides Of Unaudited Second Quarter For The Period Ended 30 June 2011 * Financial Statement And Related Announcement

http://sabana.listedcompany.com/newsroom...0563.1.pdf

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Unaudited Financial Statements & Distribution Announcement For The Second Quarter And Period From 29 October 2010 (Date Of Constitution) To 30 June 2011 * Financial Statement And Related Announcement

http://sabana.listedcompany.com/newsroom...90E6.1.pdf

http://sabana.listedcompany.com/newsroom...90E6.2.pdf

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http://www.businesstimes.com.sg/sub/late...55,00.html

July 29, 2011, 7.09 pm (Singapore time)

Sabana Reit gets S&P's investment grade rating

By ANGELA TAN

Sabana Real Estate Investment Management Pte. Ltd, the manager of Sabana Shari'ah Compliant Industrial Real Estate Investment Trust (Sabana REIT), announced on Friday that it has been assigned a 'BBB-' long-term corporate credit rating and 'axA-' ASEAN scale rating with a stable outlook from Standard & Poor's Rating Services (S&P's).

S&P's credit analyst report dated 29 July 2011, the ratings reflect Sabana REIT's moderate leverage with good access to diversified funding channels and stable cash flows.

The ratings also take into account the quality of Sabana REIT's industrial property assets in Singapore and minimal capital expenditure needs.

The stable outlook was based on the REIT's balanced business risk profile as well as its adequate cash flow protection measures.

Tan Chiew Kian, Chief Financial Officer of the Manager, commented, 'We are delighted to receive our first-time credit ratings from S&P's. Achieving a 'BBB-' global rating and 'axA-' ASEAN rating is a significant first step that will allow Sabana REIT to access investment grade Shari'ahcompliant debt and capital markets, which are important components of our future funding strategy.'

Sabana by Daiwa 15 August 2011

https://viewer.zoho.com/docs/y7aEde

Are the donations have to do with the SHARI’AH COMPLIANT rule ? This is the most generous reit among all listed reits on SGX.

SABANA SHARI’AH COMPLIANT INDUSTRIAL REAL ESTATE INVESTMENT TRUST
(a real estate investment trust constituted on 29 October 2010 under the laws of the Republic of Singapore)
Sabana REIT donates to Al Ansar Mosque for Educational Programme
Singapore, 6 September 2011 – Sabana Real Estate Investment Management Pte. Ltd.,

the Manager of Sabana Shari’ah Compliant Industrial Real Estate Investment Trust (“Sabana REIT”), announces
that it has donated S$27,718 of its income for the three months ended 30 June 2011 to the a.L.I.V.E
(Learning Islamic Values Everyday) programme at Al Ansar Mosque.

Said Mr Kevin Xayaraj Tay, Chief Executive Officer and Executive Director of the Manager, “We made
this donation because we believe that they can be put to good use to benefit poor children.”
The a.L.I.V.E. programme is developed by the Islamic Religious Council of Singapore (“Muis”) and its
partners.

Haji Abdul Razak bin Hassan Maricar, Secretary of Muis, said, “The donation will be used to benefit
needy children attending our a.L.I.V.E programme who would require financial and other supportive
assistance.”
This donation has been approved by the Independent Shari’ah Committee of Sabana REIT.
In addition, Sabana REIT has also made an earlier donation of S$13,858 in July 2011 to the Singapore
Kadayanallur Muslim League, an organisation dedicated to the local Indian Muslim community for
the purpose of providing social and financial assistance.

The total donation made by Sabana for this three-month period is therefore S$41,577 or 0.3% of
Sabana REIT’s net property income. It also follows its previous donation of S$23,553 in June, each to
The Straits Times School Pocket Money Fund and the Embassy of Japan to support the
reconstruction efforts in Japan.

(06-09-2011, 06:02 PM)Stocker Wrote: Are the donations have to do with the SHARI’AH COMPLIANT rule ?

Yes. Part of their revenue is not Shariah compliant.
One of the ways to cleanse it is through donations to approved charities.

From Prospectus
Estimated Donation of non-Shari’ah compliant income : $134,000
Represents no more than 0.3% of Gross Revenue, arising from non-Shari’ah compliant activities of two tenants.

3. DETAILS OF THE ACQUISITION AND LEASE (THE “TRANSACTION”)
The Property is being sold on a sale and leaseback basis wherein the Vendor will, upon completion of
the acquisition of the Property, take a master lease of the entire premises for a term of three years on a triple net basis (the “Lease”).


What is the meaning of the words hilighted in red ? Pls help to enlighten.