Sabana Shari'ah REIT

HoBee will not renew its master tenancy for the Jalan Kilang building , for sure.

Is the master tenancy a big issue ? There are underlying tenants in the properties - 147 sub-tenants as of 1Q 13. I think it might be better for the Manager to relinquish most of the middle men (the master tenants) and deal with the tenants directly. The rental reversions will flow directly into the unit-holders hands. Currently, all the properties are master leased except one so I suspect they will re-balance this to diversify income stream and rents will be in line with the market (though more volatile).

(Not Vested)

(18-05-2013, 02:27 PM)NTL Wrote:

(18-05-2013, 01:51 PM)Dividend Warrior Wrote:

(08-11-2012, 07:42 PM)Stocker Wrote: Another problem could be some master leases may not be renewed and Sabana has to face lower occupancy and higher maintenance expenses .

This is still a worry..

Exit or hold a lesser % in this? At least can sleep better.

I would say depends on your entry price and how many percent yield it is giving you at that price. reits have had their run. You can always buy in on a correction.

(18-05-2013, 03:38 PM)Nick Wrote: Is the master tenancy a big issue ? There are underlying tenants in the properties - 147 sub-tenants as of 1Q 13. I think it might be better for the Manager to relinquish most of the middle men (the master tenants) and deal with the tenants directly. The rental reversions will flow directly into the unit-holders hands. Currently, all the properties are master leased except one so I suspect they will re-balance this to diversify income stream and rents will be in line with the market (though more volatile).

(Not Vested)

The sabana management team is pretty small, I think they would strongly prefer to stick to master lease as they do not have the manpower to manage so many tenants on individual leases.

Generally I like reits that have half their lease on master and the other half they do it themself.

(18-05-2013, 03:38 PM)BlueKelah Wrote:

(18-05-2013, 02:27 PM)NTL Wrote:

(18-05-2013, 01:51 PM)Dividend Warrior Wrote:

(08-11-2012, 07:42 PM)Stocker Wrote: Another problem could be some master leases may not be renewed and Sabana has to face lower occupancy and higher maintenance expenses .

This is still a worry..

Exit or hold a lesser % in this? At least can sleep better.

I would say depends on your entry price and how many percent yield it is giving you at that price. reits have had their run. You can always buy in on a correction.

Waiting, waiting....

Now we should know why the management unloaded their holdings. Drop 6% today.

Please pardon me ... KNN the management damn evil sia! Before we see fire they already run first liao

They sold at the peak, around 1.36.

u pro lor, not everyone so lucky to have escaped the baby bear

(23-05-2013, 01:49 PM)cfa Wrote: Now we should know why the management unloaded their holdings. Drop 6% today.

They shouldn't have see it coming, do they?