Sabana Shari'ah REIT

[InvestArk]

yes we can assume that the bulk of the master lease will be converted to multi tenanted, meaning they wont be renewing the master leases but yet had chosen to stay put with Sabana Reit (thus resulting in the 233,058 sq ft or 6.6% of total portfolio balance which sabana has to look for new tenants to fill up on the 25th of November).

Another thing to note is that despite majorirty of the master leasers converting to multi tenanted we must take into consideration of the revision in rental and its material impact on DPU if they were to be renewed at a unfavorable rate. Of course we should also include the 6.6% potential reduction in the contribution as i believe that these spaces have yet to be leased out.

[corydorus]

This is where i am coming at. There is also a saving for the manager since without a master lease, the tenants bargaining power is reduced significantly as there unlikely be "Bulk discount". Net Net i am not sure deviation will be significant. Empty space released may also means upside.

I will be keen to know what's the negotiation between Tenants and Manager currently. How i wish !

[valuebuddies]

This is where i am coming at. There is also a saving for the manager since without a master lease, the tenants bargaining power is reduced significantly as there unlikely be "Bulk discount". Net Net i am not sure deviation will be significant. Empty space released may also means upside.

I will be keen to know what's the negotiation between Tenants and Manager currently. How i wish !

Yes I do expect higher revenue and also higher property expenses, end result could be positive or negative. A drop of 5-10% in DPU still ok for me, I could be totally wrong but at least I am prepared.

[InvestArk]

This is where i am coming at. There is also a saving for the manager since without a master lease, the tenants bargaining power is reduced significantly as there unlikely be "Bulk discount". Net Net i am not sure deviation will be significant. Empty space released may also means upside.

I will be keen to know what's the negotiation between Tenants and Manager currently. How i wish !

i'd rather be more prudent and try to factor in the 6.6% free space which would be not filled up plus and downward revision of the rental terms since management is staying mum on the details.

[Singapore_guru]

Have Sabana provided both GFA & NLA areas for each building converted to multi tenanted?

Building efficiencies could reduce to 80-85% - so are they saying 6.6% (233,000 sqft) of Gfa is vacant or NLA?

My guess is that 6.6% represents vacancy on total GFA of the portfolio.

If so, the real vacancy rate within the buildings converting to multi tenanted would be significantly higher.

Assuming non renewals for:
151 Lorong Chuan
8 Commonwealth
200 Pandan
123 Genting Lane

Total GFA 1.31mill square feet - converted to Multi building efficiency of 85% - 1,113,500 sqft of Lettable space - therefore vacancy rate (233,000 sqft vacant) across the above 4 is circa 20%.

[felixleong]

hitting $1.00 soon, any brave souls?

[valuebuddies]

still holding, I wrote earlier that will add more when go under S$1, looking forward.

[countonme]

Market weakness. It will come.

[NTL]

All REiTs are dropping. So, why go specifically for this?

[valuebuddies]

All REiTs are dropping. So, why go specifically for this?

on my wait list got FCT, FEHT, CACHE and so on..