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The REIT's yield accretive purchases of five properties last year has helped to push DPU to 2.26c for 1Q 2012. Annualised, this would give us a DPU of 9.04c. Based on the REIT's last closing price of 97.5 per unit, we are still looking at a distribution yield of more than 9%. 9.27% to be more exact.
With a NAV/unit of $1.04, the REIT is still trading at a discount to NAV even though its unit price has risen significantly in the last few months.
Gearing: 33.9%.
Interest cover ratio: 5.5x.
Occupancy: 96% to 98.4%.
WALE: 2.6 years
Weighted average remaining land lease: 39.9 years.
The REIT will go XD on 25 April and income will be distributed on 29 May.
I would like to see the managers working to increase occupancy and negotiate lease renewals with positive rental reversions this year. If successfully executed, we could see DPU improving marginally in the next few quarters.
For anyone interested in investing in an industrial S-REIT for regular income, Sabana REIT would appear to be an attractive proposition even at current prices.
Related post:
Sabana REIT: 4Q 2011 results.
See presentation slides: here.
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