Sabana Reit *Official* (SGX: M1GU)

[SBC]

Any good upside on this reits?

 

[Shion]

Sabana REIT incurs $5.6 mil of internalisation costs ytd; unitholders vote in favour of requisitionists' candidates​

https://www.theedgesingapore.com/ca...rnalisation-costs-ytd-unitholders-vote-favour

Sabana Industrial REIT has incurred $5.55 million of internalisation costs year-to-date ended Sept 30, bringing its total expenses to $10.19 million so far. Unitholders were led to believe that internalising the REIT’s manager would cost around $5 million. The process was also expected to last some four to five months.

Of the total amount spent in 2024, $1.15 million went to preparing and holding the extraordinary general meetings (EGMs) on March 8, May 24, Aug 6 and Oct 18, says the REIT manager in its 3QFY2024 and 9MFY2024 ended Sept 30 business update. Another $4.4 million was incurred while trying to implement the resolutions passed on Aug 6 to effect the internalisation of the REIT manager.

At its Oct 18 EGM, Sabana REIT’s unitholders voted in favour of the requisitionists’ proposed candidates for the internal manager. The candidates are: Lim Hock Chuan, Bhavik Umesh Doshi, Konrad Duttwiler, Jan Frederic Moermann, Saha Anshuman Manabendranath and Havard Chi. At the same time, At the same time, the trustee’s proposed candidates, Dr Chew Tuan Chiong, Chun Ming Jimmy Chan and Sandip Talukdar were rejected by the unitholders.

As at Sept 30, the REIT reported total portfolio occupancy of 84.9%, down from 91.8% as at Sept 30, 2023. Its weighted average lease expiry (WALE) as at the same period stood at 2.6 years, down from 3.1 years last year.

Rental revision stood at a positive 9.7% as at Sept 30, but down from the 16.8% reversion as at Sept 30, 2023. Some 313,953 sq ft of new leases were signed while 15,974 sq ft leases were renewed this year, compared to 111,440 sq ft of new leases signed as at Sept 30, 2023, and 212,735 sq ft of new leases renewed last year.

Aggregate leverage increased to 37.0%, from 33.8% last year. Interest coverage ratio as at Sept 30 stood at 3.2 times, compared to 3.4 times as at Sept 30, 2023.

Despite the REIT’s strong performance at the beginning of the year, Donald Han, CEO of the REIT manager, explained that the milestones were “hampered” by two repossessions in March and June this year of two master tenanted properties.

“Both ex-tenants of these properties are now in voluntary liquidation, for which we are proactively managing to protect the interest of the REIT,” he says.

“To reduce concentration risks of potential non-performance of master tenants, we have evolved our leasing strategy from that of master tenancy to an anchor tenancy focus,” he adds. “To this end, we have filled up approximately 74% of the net lettable area at 33, 33A & 35 Penjuru Lane with two anchor tenants.”

The REIT manager is also carrying out property reconfiguration initiative at 30 & 32 Tuas Avenue 8 to allow maximum leasing flexibility from early next year. The REIT manager also signed its first anchor tenant for Sabana@1TA4; the tenant will occupy 64% of the property’s total lettable area.

Units in Sabana REIT closed at 38.5 cents on Oct 17 before the REIT manager called for a trading halt on the morning of Oct 18.

 

[Shion]

Sabana REIT declares improved DPU of 2.86 cents for FY2024, 3.6% higher y-o-y​

https://www.theedgesingapore.com/ca...improved-dpu-286-cents-fy2024-36-higher-y-o-y

Sabana Industrial REIT has reported a distribution per unit (DPU) of 2.86 cents for the FY2024 ended Dec 31, 2024, 3.6% higher y-o-y. There were a total of 1.13 billion units in the REIT as at Dec 31, 2024, compared to 1.11 billion units in the REIT in the same period the year before.

Gross revenue for the full-year rose by 1.3% y-o-y to $113.3 million, thanks to a four-year high positive rental reversion in the period.

On the other hand, portfolio occupancy slipped to 85.0% compared to 91.2% as at the FY2023. This was largely due to the repossessions of 33, 33A & 35 Penjuru Lane on Mar 8, 2024, and subsequently, 30 & 32 Tuas Avenue 8 Jun 14, 2024.

Despite this, net property income (NPI) for FY2024 increased by 4.5% y-o-y to $57.5 million, thanks to higher revenue and lower property expenses.

The REIT’s cash and cash equivalents posted a similar uptrend in the period, coming in at $18.5 million, a 15.0% y-o-y increase from FY2023’s $16.1 million.

As at Dec 31, 2024, the REIT’s portfolio weighted average lease expiry (WALE) by gross rental income was 2.6 years, with underlying land leases averaging 26.4 years by gross floor area (GFA).

The total distribution amount declared stood at $32.2. million, 5.4% higher y-o-y. The amount is about 90.4% of the REIT’s distributable income to its unitholders, per its distribution policy. According to the REIT manager, it kept 10% of its distributable income for FY2023 for “prudent capital management” for costs incurred and to be incurred in connection with the internalisation of the manager.

As at 31 Dec, 2024, aggregate leverage was 37.4% with a weighted average debt maturity at 2.9 years. In comparison, aggregate leverage was 34.3% with a weighted average debt maturity at 2.9 years as at 31 Dec, 2023.

Sabana REIT’s interest coverage ratio was 3.0 times as at 31 Dec, 2024.

“We achieved multiyear highs for gross rental income, NPI and DPU for FY2024 if we were to add back the approximately 10% that was being retained for internalisation expenses,” says Donald Han, CEO of the manager.

“Throughout the last four years, our attentiveness to rental renewal rates resulted in our rental reversion reaching a four-year high gear, attaining one of the best track records amongst industrial S-REITs,” he adds.

“Despite the uncertainties that the internalisation process brought along, we pressed on to safeguard the financial prudence of the REIT to maintain the foundation for stability,” says Han.

Sabana REIT expects the current FY2025 to be challenging due to rising costs and prospects of interest rates held at elevated levels.

Additionally, with internalisation of the REIT management function ongoing, it expects to incur additional costs.

Units in Sabana Industrial REIT closed 0.5 cents higher or 1.35% up at 37.5 cents on Jan 21.

 

[luckyplate]

increase dpu ...so far ..what to expect next ,?
Coming AGM ..inapril.... Voting advice ..??anyone attending ..

 

[luckyplate]

Sabana REIT declares improved DPU of 2.86 cents for FY2024, 3.6% higher y-o-y​

https://www.theedgesingapore.com/ca...improved-dpu-286-cents-fy2024-36-higher-y-o-y

Sabana Industrial REIT has reported a distribution per unit (DPU) of 2.86 cents for the FY2024 ended Dec 31, 2024, 3.6% higher y-o-y. There were a total of 1.13 billion units in the REIT as at Dec 31, 2024, compared to 1.11 billion units in the REIT in the same period the year before.

Gross revenue for the full-year rose by 1.3% y-o-y to $113.3 million, thanks to a four-year high positive rental reversion in the period.

On the other hand, portfolio occupancy slipped to 85.0% compared to 91.2% as at the FY2023. This was largely due to the repossessions of 33, 33A & 35 Penjuru Lane on Mar 8, 2024, and subsequently, 30 & 32 Tuas Avenue 8 Jun 14, 2024.

Despite this, net property income (NPI) for FY2024 increased by 4.5% y-o-y to $57.5 million, thanks to higher revenue and lower property expenses.

The REIT’s cash and cash equivalents posted a similar uptrend in the period, coming in at $18.5 million, a 15.0% y-o-y increase from FY2023’s $16.1 million.

As at Dec 31, 2024, the REIT’s portfolio weighted average lease expiry (WALE) by gross rental income was 2.6 years, with underlying land leases averaging 26.4 years by gross floor area (GFA).

The total distribution amount declared stood at $32.2. million, 5.4% higher y-o-y. The amount is about 90.4% of the REIT’s distributable income to its unitholders, per its distribution policy. According to the REIT manager, it kept 10% of its distributable income for FY2023 for “prudent capital management” for costs incurred and to be incurred in connection with the internalisation of the manager.

As at 31 Dec, 2024, aggregate leverage was 37.4% with a weighted average debt maturity at 2.9 years. In comparison, aggregate leverage was 34.3% with a weighted average debt maturity at 2.9 years as at 31 Dec, 2023.

Sabana REIT’s interest coverage ratio was 3.0 times as at 31 Dec, 2024.

“We achieved multiyear highs for gross rental income, NPI and DPU for FY2024 if we were to add back the approximately 10% that was being retained for internalisation expenses,” says Donald Han, CEO of the manager.

“Throughout the last four years, our attentiveness to rental renewal rates resulted in our rental reversion reaching a four-year high gear, attaining one of the best track records amongst industrial S-REITs,” he adds.

“Despite the uncertainties that the internalisation process brought along, we pressed on to safeguard the financial prudence of the REIT to maintain the foundation for stability,” says Han.

Sabana REIT expects the current FY2025 to be challenging due to rising costs and prospects of interest rates held at elevated levels.

Additionally, with internalisation of the REIT management function ongoing, it expects to incur additional costs.

Units in Sabana Industrial REIT closed 0.5 cents higher or 1.35% up at 37.5 cents on Jan 21.

Attending AGM in April ??vote no ..to most resolution ..

 

[light84]

I just send in letter to vote against internal price discovery exercise. What a waste of money!

Let’s finish the internalisation first!

 

[light84]

increase dpu ...so far ..what to expect next ,?
Coming AGM ..inapril.... Voting advice ..??anyone attending ..

Please vote against the internal price discovery. It is a waste of time and money to do this. The priority is to finish the internalisation first. Everything else can talk later

 

[luckyplate]

Please vote against the internal price discovery. It is a waste of time and money to do this. The priority is to finish the internalisation first. Everything else can talk later

Agreed ..let's complete current task and not try to rock the boat .. further ....I vote against it ..too ...

 

[chowck]

Please vote against the internal price discovery. It is a waste of time and money to do this. The priority is to finish the internalisation first. Everything else can talk later

Internal price discovery is meaning what? Is it to find buyers to bid for all of their porforlios and after that delist this reit & distribute proceeds to all SHs?

 

[light84]

Internal price discovery is meaning what? Is it to find buyers to bid for all of their porforlios and after that delist this reit & distribute proceeds to all SHs?

Find out what price buyers are willing to pay for the assets first.

Delist is the next natural step and distribute the proceeds but is not within the scope of the price discovery

 

[V_for_Vanilla]

Internal price discovery is meaning what? Is it to find buyers to bid for all of their porforlios and after that delist this reit & distribute proceeds to all SHs?

Means nothing much. Waste of money imo.

 

[andriod]

There is still another vote:
- To authorise the manager to issue units and to make or grant convertible instruments.
- to authorise the manager to allot and issue units pursuant to the distribution reinvestment arrangements.

What should we vote for the above?

 

[luckyplate]

There is still another vote:
- To authorise the manager to issue units and to make or grant convertible instruments.
- to authorise the manager to allot and issue units pursuant to the distribution reinvestment arrangements.

What should we vote for the above?

No as well

 

[luckyplate]

Means nothing much. Waste of money imo.

Don't let this happen

 

[SBC]

Up 2 cents today

 

[SBC]

Good turnaround story.

 

[V_for_Vanilla]

Is the Trustee still playing punk over the internalisation process? How much already incurred for the process?

 

[light84]

Internalization completed !!!

It’s history as a first in the making for local REITs with internal manager

Though I quite sad to see the current ceo Donald han leaving, I think his team did a commendable job.

Not sure if the new management will be as capable.

But the name Alpha integrated reit sounds a lot better

 

[andriod]

Yes this reit is doing well, dpu increased with the recent quarter announcement, and should keep increasing and rally up like the other s reits, given that this reit share price is still at a discount.

 

[Asphodeli]

MAKE SABANA REIT GREAT AGAIN!
SABANA REIT, THE PEOPLE'S REIT!