27-08-2013, 10:27 AM
Just too many ind properties chasing after too few tenants , many tenants like Armstrong is not renewing its agreement with Ascenda, because Armstrong will be moving its operation to Malaysia.
(27-08-2013, 02:40 PM)Singapore_guru Wrote: [ -> ]Some REITS are reporting positive reversions, these are more likely head lease deals struck in pre 2010. My view is that the sale and leaseback rents for Sabana are high and given leasing risk, operating expenses now being under their responsiblilty (assuming the head tenant does not renew) I think there is more risk to the downside....
if there was positive news why wouldnt they announce it?
Quote:“We’re pleased with the progress we’ve made in engaging our tenants, negotiating early renewals
for underlying leases, as well as in filling up available space. In the event that the remaining four
master leases are not renewed, we will be well‐prepared to take over the direct management of
these currently master‐tenanted properties and we’re positive that the transition will be smooth. ”
Mr Xayaraj said. Under this scenario, the net balance of the net lettable area (“NLA”) available for
lease on 25 November 2013 is expected to be approximately 7.3% of Sabana REIT’s total NLA.
(27-08-2013, 02:52 PM)Nick Wrote: [ -> ](27-08-2013, 02:40 PM)Singapore_guru Wrote: [ -> ]Some REITS are reporting positive reversions, these are more likely head lease deals struck in pre 2010. My view is that the sale and leaseback rents for Sabana are high and given leasing risk, operating expenses now being under their responsiblilty (assuming the head tenant does not renew) I think there is more risk to the downside....
if there was positive news why wouldnt they announce it?
Even if the master lessor doesn't renew, won't it be collecting rent from sub tenants directly ? I think it is very likely that the sub tenants rents are higher or else the master lessor won't be earning from the spread. Well, let's wait and see the next quarter result for its leasing progress.
Quote:“We’re pleased with the progress we’ve made in engaging our tenants, negotiating early renewals
for underlying leases, as well as in filling up available space. In the event that the remaining four
master leases are not renewed, we will be well‐prepared to take over the direct management of
these currently master‐tenanted properties and we’re positive that the transition will be smooth. ”
Mr Xayaraj said. Under this scenario, the net balance of the net lettable area (“NLA”) available for
lease on 25 November 2013 is expected to be approximately 7.3% of Sabana REIT’s total NLA.
(Not Vested)
(27-08-2013, 02:26 PM)Nick Wrote: [ -> ]Is it definite that the expiry of the leases will result in a decline on revenue ? Aren't industrial reits reporting positive rental reversions over the past few quarters ? I think the main benefit of this acquisition would be the length of its leasehold compared to the weighted average land tenure of the REIT.
(Not Vested)
(27-08-2013, 10:27 AM)cfa Wrote: [ -> ]Just too many ind properties chasing after too few tenants , many tenants like Armstrong is not renewing its agreement with Ascenda, because Armstrong will be moving its operation to Malaysia.
(27-08-2013, 02:52 PM)Nick Wrote: [ -> ]Even if the master lessor doesn't renew, won't it be collecting rent from sub tenants directly ? I think it is very likely that the sub tenants rents are higher or else the master lessor won't be earning from the spread. Well, let's wait and see the next quarter result for its leasing progress.
(27-08-2013, 04:28 PM)Greenrookie Wrote: [ -> ](Warning: Just my speculation)
I remember reading somewhere that notice for non-renewal of Master leases should be around 6-9 months. Thus, given there is no announcement of non-renewal of Master leases, we can conclude the following:
1) The 7.2% NLA that will be free up is the existing vacant units that is currently existing, it is not due to anyone moving out.
2) If the master lessee want to move out of the premises, they will not need to negotiate till this eleventh minute, they will give notice of non-renewal. So if the master lessee is staying put, even if they give up the status of master-tenant and become a sub-tenant, the impact on revenue should be very minimium, what I am trying to say is, the 7.2% NLA free up might not cause a proportional/ or any fall in revenue.
3) The reason why it is taking so long is everyone guess, my take is the amount of rental revision that is holding everyone back
Do I make sense? I hope. (vested)