Rich gets richer and poor gets poorer.

Point #1

Someone might have more money than another. He is simply richer. It doesn't mean that he is rich.

Someone might have less money than another. He is simply poorer. It doesn't mean that he is poor.


Compared to the needy, most of us are very fortunate.

Point #2

Instead of lamenting how some people are getting richer, try to understand what they are doing to become richer. Unless seriously disadvantaged, anyone can become richer.

If we want it badly enough, we will make it happen!

只要功夫深，铁杆磨成针.

Related post:
The very first step to becoming richer!

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.