Sabana Shari'ah REIT

[Singapore_guru]

http://infopub.sgx.com/FileOpen/20131017...eID=260079

There we have it.

Only 1 out of 5 master leases to be renewed. The rest will be multi-tenant. Next q we shall know the impact of this in gross rent revenue. Waiting ... Again...

Where is the forward guidance? Hiding the good news or holding back the bad?

[ForeverAlone]

I think likely to be bad ahead

if the 4 other master leases had good prospect wouldn't the previous guys want to do the master lease with sabana
obviously sabana taking over is no good, need more manpower and the conditions are likely to be unfavorable


currently they are saying
"The net balance of NLA available for lease on 25 November 2013 is approximately 233,058 sq ft (or 6.6% of total portfolio)."

flipping back at page 24 of this thread, which is what they said last quarter
"net lettable area (“NLA”) available for lease on 25 November 2013 is expected to be approximately 7.3% of Sabana REIT’s total NLA."

over the past 3 months, they only brought it down from 7.3% to 6.6%!!!
this is a super big red flag, if after the next 2 months it expires and 5% of the area still not rent out
How will DPU be affect?
how much drop? maybe about 5% drop in DPU? since you renting out 5% less of area right?

[felixleong]

sabana... really lousy management
so glad I sold out when it was 1.2x and never looked back

gearing is close to 40% and DPU is likely to be pressured
recent placement was bad for shareholders and management cutting down its stakes also a negative in my view

good luck to those who are still holding this ^^

[Singapore_guru]

They need to keep buying assets but unfortunately there is not enough quality stock available or if they are, it might be a multi tenated facility with existing vacancy..

The AMD deal was to protect DPU - they really had no need to buy it, given the other concerns they have with their existing assets

Good luck to those invested

[NTL]

sabana... really lousy management
so glad I sold out when it was 1.2x and never looked back

gearing is close to 40% and DPU is likely to be pressured
recent placement was bad for shareholders and management cutting down its stakes also a negative in my view

good luck to those who are still holding this ^^

A quick question.

What prompt you to buy them at first place?

[corydorus]

Without master leases, is it doing away with middle man "premium" and more space to rent out to earn even more ?
Will this be an opportunity if dip significantly tomorrow ?

[NTL]

I believe it depends on how much space were taken up by the master tenants for their own use, and if they have intention to continue renting the space.

[ForeverAlone]

Without master leases, is it doing away with middle man "premium" and more space to rent out to earn even more ?
Will this be an opportunity if dip significantly tomorrow ?

by right should have "premium"
but if they did it right they should had leased it all out already and enjoy the "premium"
given the poor situation now... I think they are having problems renting out, maybe due to weak market sentiments?

$1.00 or less the yield would be very attractive... for yield

[NTL]

If the master tenant be moving out, where will the "premium" be?

[Singapore_guru]

The "premium" was received on selling to Sabana - I doubt whether the leaseback tenants where covering the rental costs from its sub-tenants, considering operating expenses, land rent & property tax

But it was 3 years of "pain" during the leaseback period....but large premiums over book values on sale

Does anybody think CDL sold their building cheap to Sabana? I think not!