- Main Sector(s): Industrial, Logistics & Retail
- Country(s) with Assets: Singapore
- No. of Properties (exclude Development/Associate/Fund): 18
Key Indicators
Related Parties Shareholding
- REIT Sponsor's Shareholding: Below median by 20% or more
- REIT Manager's Shareholding: 0%
- Directors of REIT Manager's Shareholding: Blow median by 20% or more
Lease Profile
- Committed Occupancy: ± 5% from median
- WALE: Below median by 20% or more
- Highest Lease Expiry within 5 Years: ± 10% from median. Falls in 2025
- Weighted Average Land Lease Expiry: Below median by 20% or more
Debt Profile
- Gearing Ratio: Below median by 20% or more
- Cost of Debt: Above median by 10% or more
- Fixed Rate Debt %: ± 10% from median
- Unsecured Debt %: 100%
- WADM: ± 10% from median
- Highest Debt Maturity within 5 Years: Above median by 20% or more; Falls in 2027
- Interest Coverage Ratio: ± 10% from median
Diversification Profile
- Top Geographical Contribution: 100%
- Top Property Contribution: Above median by 20% or more
- Top 5 Properties' Contribution: ± 10% from median
- Top Tenant Contribution: Below median by 20% or more
- Top 10 Tenants' Contribution: ± 10% from median
Key Financial Metrics
- Property Yield: ± 10% from median
- Management Fees over Operating Distributable Income: Below median by 20% or more; $7.52 distribution for every dollar paid
- Operating Distributable Income on Capital: Above median by 10% or more
- Operating Distributable Income Margin: Below median by 20% or more
- Operating Distribution Proportion: Above median by 10% or more
- TTM Distributable Income Breakdown:
- 99.8% from Operation
- 0.2% from Release of Retention/Capital
Trends
- Uptrend: DPU from Operation, Committed Occupancy, Interest Coverage Ratio, Property Yield, Operating Distributable Income on Capital
- Slight Downtrend: NAV per Unit
- Downtrend: Operating Distributable Income Margin
Relative Valuation
- Dividend Yield - Average for 1y, 3y & 5y
- P/NAV - Average for 1y, 3y & 5y
Author's Opinion
| Favorable | Less Favorable |
|---|---|
| Diversified Sector | Low REIT Sponsor's Shareholding |
| Low Gearing Ratio | 0% REIT Manager's Shareholding |
| 100% Unsecured Debt | Low Directors of REIT Manager's Shareholding |
| Low Top Tenant Contribution | Short WALE |
| Competitive Management Fees | Short Weighted Average Land Lease Expiry |
| High Operating Distributable Income on Capital | High Cost of Debt |
| High Operating Distribution Proportion | Concentrated Debt Maturity |
| DPU from Operation Uptrend | Concentrated Geographical Contribution |
| Committed Occupancy Uptrend | High Top Property Contribution |
| Interest Coverage Ratio Uptrend | Low Operating Distributable Income Margin |
| Property Yield Uptrend | Operating Distributable Income Margin Downtrend |
| Operating Distributable Income on Capital Uptrend |
Overall, the performance remains stable for 1H 2023. Despite higher finance costs, Sabana is able to maintain a similar DPU resulting from a higher occupancy rate and positive rental reversion. The occupancy is improving and the lease expiry is moderately well spread. The impact of a potential rate hike is mitigated since there is no refinancing requirement until 4Q 2025 as well as a slightly high proportion of fixed rate.
If you have been following the news, then you would know that Quarz Capital has made a requisition for EGM to vote on two resolutions: the removal of the existing manager and to set up of a new internal manager. The EGM will be held at 10.00 a.m. on Monday, 7 August 2023 at Hope@New Tech Park, 151 Lorong Chuan, #02-06 (Lobby F) Singapore 556741. From the interim financial report, the manager has stated that the removal of the manager may result in mandatory prepayment of its outstanding loans and interest if no satisfactory agreement is reached with the lenders, within a period of not more than 30 days (or such longer period as the Lenders may agree). In this regard, the manager had written to lenders to seek a waiver but it is not granted at this moment.
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SREITs Dashboard - Detailed information on individual Singapore REIT
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*Disclaimer: The information presented on this blog is for educational and informational purposes only. The materials, including research and opinions, are based solely on my own findings and should not be considered as professional financial advice or a definitive statement of fact. I cannot guarantee the accuracy, completeness, or reliability of the information provided. I shall not be held liable for any errors, omissions, or losses that may occur as a result of using the information presented on this blog. It should be noted that the information presented on this blog does not constitute a buy, sell, or hold recommendation for any security. It is crucial to conduct your own thorough research and due diligence before making any investment decisions.
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