Sabana REIT: 2Q 2013 2.4c DPU.

Sabana REIT has declared a DPU of 2.4c and will go XD on 23 July. Unit holders will be paid on 29 August.

The numbers are nothing out of the ordinary:

NAV/share: $1.06

Gearing: 37.1%

Interest cover ratio: 5.1x

Occupancy: 100%

Some people wonder why Sabana REIT is trading with such a high distribution yield. It is nearly 8%.

Well, there are many possible reasons but one reason is probably because 5 of its master leases are expiring in November this year and this is something I have blogged about since the second half of last year.

In the latest report, the management revealed that 1 of the master leases will be renewed while the other 4 are still undergoing negotiations. It has been revealed that in the event these 4 master leases are not renewed, the REIT will see a 7.3% vacancy rate. This would impact income available for distribution negatively even if temporarily.

As asking rents of industrial properties have risen over the last 3 years, I expect Sabana REIT to renew these leases with positive rental reversions if they should be successful in securing renewals. Failure to secure renewals would mean some temporary loss of income but it could be a good thing as the asking rents could be scaled higher compared to that of a master lease.

See presentation slides: here.

ASSI: 10 quarterly reports with 1 blog post.

One of the things I used to do which I stopped more than two years ago was to keep track of how ASSI was doing in terms of visitor numbers and pageviews. Someone told me back then that it was as if ASSI was a company and I was reporting to shareholders on its performance. Guess what? The last time I did such a report was on 2 April 2011!

I guess I am pretty late in presenting the results of the last 10 quarters. Yes, I know. If I were the CEO of a registered company, I would be in so much trouble. Thank goodness I am not.

Click to enlarge.

You know it is like how we live with someone in the same flat for a couple of years and we can't really tell if the person has changed in appearance? It takes someone who has not seen the person for quite a while to be able to tell the difference, if any.

Well, I had such a moment just now when I looked at the graph. Amazed.

I guess, somehow, I must be doing something right and there is even less reason for me to stop blogging now. Thanks to all of you. :)

Related post:
ASSI 1Q 2011Quarterly Report.