Sabana Reit *Official* (SGX: M1GU)

[steadywin]

back to covid price again but with higher DPU and upcoming increase in DPU from AEI like 1 Tuas, higher occupancy rate and manager's profit.

hooting now, may we all huat!

 

[luckyplate]

well, wouldn't say Sabana management has top class people. without shareholders stopping them from their worst inclinations, share price would have been lower.

In fact maybe its a chance to hire the Croesus people. Can grow dividend faster and sell Sabana at big premium to book value

slow and steady wins the race... we dont want any dump people from suntec city reit ...

 

[luckyplate]

Suntec city .. invest in UK .. is the worst decision .. let's debate

 

[steadywin]

Suntec city .. invest in UK .. is the worst decision .. let's debate

heard their aussie office properties also quite jialat

 

[luckyplate]

heard their aussie office properties also quite jialat

Overseas property ...is like that .. carry high risk . Unless there is a steep discount .. usually .. chop carrot.

 

[V_for_Vanilla]

heard their aussie office properties also quite jialat

Don't recall Sabana has overseas property.

 

[steadywin]

Don't recall Sabana has overseas property.

we talking about Suntec and its overseas properties in UK and Aussie =)
agreed. Sabana does not have overseas property.

investors starting to buy in to the sabana story of low leverage, increasing occupancy and internal manager. Hopefully will push share price back to the 42-43 cents level soon!

 

[luckyplate]

lets continue to post progress of internal manager here ..

 

[steadywin]

https://omny.fm/shows/moneyfm-morning-show/bigger-picture-sabana-reit-heads-into-uncharted-te
bullish.. i like it when he say ESR bought the manager for 35 million, Croesus bought the manager for 50 million and now sabana shareholders will setup the manager for 3-5million.

setup process will take up to april next year and shareholders will see jump in dpu.
Huat ah!

 

[sohguanh]

I also hold this REIT stock for many many years. It is quite sad to see the current situation unfold. I dunno why sometimes smaller players tend to have such drama. Not to say big players don't have of cuz. I guess this is why sometimes ppl say invest in stock that got bigger market cap for "safety" reason and after so many years I think there is "some truth" in it.

I invest in smaller players in the hope they turn into bigger players along the way but I guess this strategy is not foolproof. Some went on to achieve that and some turn the other way. Once turn the other way hope it don't become a delisting from SGX at a super lousy price! Soilbuild REIT was my experience REIT can get delisted!

 

[steadywin]

has held up quite well versus other reits, with 2-3 big shareholders checking each other, i am super relax in this counter

quite a good sign that ESR took scrip and increased their stake to 21 percent

https://links.sgx.com/FileOpen/_eFORM3 ESR Sabana REIT 18.09.23.ashx?App=Announcement&FileID=772649

 

[luckyplate]

It is the manager ... That decide the fate .. need capable people ...not stupid people to run the show. .just go take a look at suntec and Singpost ..

 

[luckyplate]

Look at Elon musk too .. it is because he is capable that the Tesla stock can reach such level ..

 

[Shion]

Sabana Reit nets 91.8% total portfolio occupancy in Q3​

https://www.straitstimes.com/busine...reit-nets-918-total-portfolio-occupancy-in-q3

SINGAPORE - The interim manager of Sabana Industrial Real Estate Investment Trust (Sabana Reit) on Wednesday announced the real estate investment trust (Reit) had achieved total portfolio occupancy of 91.8 per cent for the third quarter ended Sept 30, down 2.1 percentage points from its Q2 occupancy of 93.9 per cent.

However, this was higher than the 89.1 per cent total portfolio occupancy it netted in the corresponding year-ago period.

The Reit’s interim business update for Q3 did not include a net income figure. It also does its distributions on a half-yearly basis.

In the update, Reit manager Sabana Real Estate Investment Management (SREIM) noted that the Reit had renewed 212,735 square feet (sq ft) of leases, higher than the 134,409 sq ft of renewed leases it logged in Q2.

In particular, the anchor tenant at 508 Chai Chee Lane renewed its lease in Q3.

The Reit reported a positive rental reversion of 16.8 per cent, down from 27.1 per cent in Q2, continuing its track record of positive quarterly reversions since Q1 FY2021, said the manager.

In terms of new leases, it signed 111,440 sq ft of leases mainly for the Reit’s warehouses and logistics properties. This was also an increase from the 62,597 sq ft of new leases the Reit achieved in Q2 and the 83,588 sq ft signed in Q3 FY2022.

The Reit’s aggregate leverage ratio stood at 33.8 per cent in Q3, while its weighted average lease expiry is now 3.1 years.

Mr Donald Han, chief executive of the Reit manager, said the interim manager’s current focus is to stabilise its portfolio and execute ongoing capital expenditure projects. This includes the asset enhancement initiative at 1 Tuas Avenue 4, which was 45 per cent completed as at end-September.

“We are on track with our solar panel installations at selected properties, of which two of the four installations have been completed,” he added.

The Reit was recently in the limelight after its unitholders voted in an extraordinary general meeting to remove SREIM and internalise the Reit manager, a landmark decision for the Singapore Reit market, which has never seen an internally managed Reit.

Units of Sabana Reit rose 1.3 per cent or $0.005 to $0.39 before the announcement. THE BUSINESS TIMES

 

[luckyplate]

Another egm on the way ..let's get the internal manager iron out ...as the first priority ..

 

[Shion]

Sabana REIT’s trustee announces application for Order 32 to clarify issues around trust deed amendment​

https://www.theedgesingapore.com/ne...ion-order-32-clarify-issues-around-trust-deed

Sabana Industrial REIT’s trustee, HSBC Institutional Trust Services (HSBC Trustee) announced on Jan 9 that it has filed an originating application, under Order 32 of the Rules of Court 2021 of Singapore (the Order 32 Application), to help clarify necessary threshold issues and steps for the internalisation process and to ensure that the views of all Unitholders are properly considered in an appropriate forum. Order 32 of the Rules of Court allows for an action to be brought in the Singapore courts for the determination of any question arising in the execution of a trust

HSBC Trustee is seeking a declaration from the Court that amendments to the Trust Deed are required to implement the Resolutions passed on Aug 7 in an EGM requisitioned by Quarz Capital Asia.

In addition, HSBC Trustee has asked the Court to declare that the Trustee’s power to certify amendments to the Trust Deed is in the nature of a discretion rather than an obligation. The Trustee has also asked the Court to declare that the Trustee is at liberty to convene an EGM in accordance with the requirements of the Trust Deed and the CIS Code to consider the proposed Trust Deed amendments.

On Nov 7, 2023, HSBC Trustee had announced that it would need an extraordinary resolution in an EGM for to effect changes in the Trust Deed. On Jan 9, in an appendix, HSBC Trustee has indicated the amendments required to the Trust Deed, explaining the rationale for proposed Trust Deed amendments, and “why it cannot be said with certainty that the proposed Trust Deed amendments do not materially prejudice the interests of the unitholders”.

In addition to applying for Order 32, HSBC Trustee has also advised that to convene an EGM to vote on the 12 Requisitioned Resolutions by the Sabana Growth Internalisation Committee (SGIC) in a requisition notice dated Dec 21, 2023, “at this juncture will add additional work over and above the current Work Plan. Some of the Requisitioned Resolutions will also require further clarifications and modifications and may not be actionable as proposed”.

On Jan 8, Sabana REIT’s manager, under advice, announced on SGIC is not a registered unitholder of Sabana REIT, and hence the requisition notice dated Dec 21 is not valid.

 

[Shion]

Sabana Reit posts 21.2% fall in H2 DPU to $0.0115, with 10% kept for capital management​

https://www.straitstimes.com/busine...-to-00115-with-10-kept-for-capital-management

SINGAPORE - Sabana Industrial Real Estate Investment Trust (Sabana Reit) posted a distribution per unit (DPU) of 1.15 Singapore cents for the half-year ended Dec 31, 2023, down 21.2 per cent from the year-ago period.

In a bourse filing on Jan 23, the trust manager said the decline was the result of 10 per cent of the total available for distribution being retained for “prudent capital management, in view of additional costs incurred and to be incurred in connection with the internalisation (of the Reit’s manager)”.

Gross revenue for H2 2023 rose 13.1 per cent year on year (yoy) to $56.6 million from $50.1 million, uplifted by positive rental reversions across the portfolio as overall occupancy rate remained stable.

Net property income (NPI) improved slightly to $27.8 million in H2 2023 from $26.3 million in the corresponding period a year ago.

The H2 results bring Sabana Reit’s FY2023 DPU to 2.76 Singapore cents, down 9.5 per cent from 3.05 cents in FY2022.

For the full year, gross revenue was up 17.9 per cent to $111.9 million from $94.9 million in FY2022; NPI rose 3.2 per cent to $55 million on the back of three consecutive years of positive double-digit rental reversions and stable overall occupancy rate, said the manager.

As at end-December 2023, the Reit’s portfolio occupancy rate remained at 91.2 per cent, unchanged from the previous year. The manager said this data excludes 1 Tuas Avenue 4, which is undergoing asset-enhancement works.

The Reit, which has 18 properties under its management, achieved a higher portfolio valuation of $903.9 million as at end-2023, up 2.1 per cent yoy. This was attributed to ongoing asset enhancement initiatives, asset rejuvenation and higher signing rents for both new and renewed leases across the portfolio, said the manager.

With an aggregate leverage of 34.3 per cent as at end-2023, the Reit has a debt headroom of $145.7 million. The manager added that the portfolio’s weighted average lease expiry has remained consistent at three years, underpinned by proactive leasing efforts.

The manager expects interest rates to stay elevated and operating costs to remain high. The manager will continue to aim to convert all financing facilities into sustainability-linked or green loans by 2025.

Units of Sabana Reit ended Jan 23 unchanged at $0.39. THE BUSINESS TIMES

 

[hound297]

https://www.businesstimes.com.sg/co...r-hiring-spree-following-high-attrition-ahead

THE manager of Sabana Industrial Real Estate Investment Trust (Sabana Reit) is on a hiring spree as it faces a high attrition rate of more than 30 per cent ahead of a proposed internalisation of the Reit’s management function.

"There are currently six openings from Sabana Real Estate Investment Management (SREIM) advertised on the MyCareersFuture job portal, all posted earlier this month. The roles advertised include positions in investor relations, finance, human resources, compliance and asset..."

Looking for scapegoats ? Or is this a sign of renewal and a brighter future ?

 

[ctan84]

This banana reit really is .... Glad I sold at 99 cents back then..

 

[Shion]

Internalisation comes at a cost and Sabana REIT is fully valued, DBS says​

https://www.theedgesingapore.com/ca...es-cost-and-sabana-reit-fully-valued-dbs-says

DBS Group Research, in a research note dated Jan 24, echoed Sabana Industrial REIT’s Trustee, that the REIT will continue to incurr internalisation costs this year.

On Jan 23, HSBC Trust Services (HSBC Trustee), as Sabana Industrial REIT’s trustee, stated that costs have been incurred and will continue to be incurred as it carries out the internalisation process.

In the meantime, HSBC Trustee has filed an originating application, under Order 32 of the Rules of Court 2021 of Singapore (the Order 32 Application), to help clarify necessary threshold issues and steps for the internalisation process and to ensure that the views of all Unitholders are properly considered in an appropriate forum. Order 32 of the Rules of Court allows for an action to be brought in the Singapore courts for the determination of any question arising in the execution of a trust. The respondent in the Order 32 Application is Quarz Capital Asia.

Prior to Sabana REIT’s Aug 7 EGM requisitioned by Quarz Capital Asia to vote to remove the external manager, and to direct the Trustee to implement an internalisation process, in resolutions proposed by Quarz Capital Asia, the Trustee had warned the the process would take at least 12 months and the process would incur costs.

No surprise then, that on Jan 23, Sabana Industrial REIT's manager announced that the REIT had incurred costs of $1.37 million for the period up to the requisition of the EGM by Quarz Capital Asia, held on Aug 7.

An additional $3.27 million of expenses were incurred, relating to the internalisation process based on the resolutions passed at the EGM. The retention of 10% of distributable income, coupled with one off impairment of receivables of $2 million caused total distributions to decline by 7.7% to $30.5 million. As a result, distributions per unit (DPU) declined by 21.2% in 2HFY2023 to 1.15 cents.

Together with 1HFY2023 DPU of 1.61 cents, FY2023's DPU declined by 9.5% to 2.76 cents.

In its Jan 24 report, DBS says FY2023 DPU would have matched FY2022’s DPU of 3.05 cents if not for the decision to retain 10% of distributable income.

“With the 10% income retention, FY2023 DPU settled at 2.76 cts. The retention of income was a strategic move aimed at prudent capital management, considering the costs incurred and anticipated expenses associated with the internalisation process. To date, a total of $4.64 million has been spent on activities related to the internalisation of the REIT,” DBS says.

Operationally, Sabana REIT performed quite well, with revenue at an all-time high. “In FY2023, revenues surged to $111.9 million, marking a substantial 17.9% y-o-y increase. This strong growth can be attributed to consistently robust positive rental reversions and sustained stable occupancy rates,” DBS says.

Net property income (NPI) also rose but at a more modest 3.2% y-o-y, to $55 million. “This increase was partially tempered by elevated operating and utility costs. It's worth noting that revenues could have been even higher were it not for a $2 million impairment in accounts receivable related to the master tenant at 33/35 Penjuru Lane. Legal proceedings concerning this matter are still ongoing,” DBS notes.

DBS says Sabana REIT is fully valued with a target price of 30 cents. There are too many known unknowns. “Key to watch will be the response from lenders given the change in ownership, and whether there would be a change in credit spreads when refinancing comes due, which could result in further pressure on DPUs. Our estimate is a 1% increase in interest rates could potentially cut DPUs by close to 9%. In addition, questions surrounding the ESR Group stake in the REIT will likely arise and could be an overhang for the stock should they relook at their stake in the medium term.”