Sabana Shari'ah REIT

Stocker · (This post was last modified: 13-09-2013, 01:13 PM by Stocker.)

There are plentiful of ind. buildings for sales in the market, why need to rush to buy ?

KopiKat · 13-09-2013, 12:09 PM

Extracts from UOBKH report,

Potential near-term dilution. We see a potential near-term 2-3% dilution of DPU as the acquisition is currently 50% occupied, and would need some time to be fully leased out.

Singapore_guru · 13-09-2013, 12:54 PM

Next will be increased vacancy, fall in net property income, fall in valuation...further fall in stock price Confused

Let the unravelling begin!

Stocker · 13-09-2013, 01:14 PM

But the manager is going to collect their fees , no impact to them at all.

Greenrookie · 13-09-2013, 01:30 PM

(13-09-2013, 12:09 PM)KopiKat Wrote: Extracts from UOBKH report,

Potential near-term dilution. We see a potential near-term 2-3% dilution of DPU as the acquisition is currently 50% occupied, and would need some time to be fully leased out.

Can attached the report? I from Uobkayhian too, but can't find the report lei...
That will means post dilution DPU will be 9 cents

Gaudente · 13-09-2013, 01:36 PM

I wonder what Sharia law says about managers who rob unitholders by offering units in private placement at discounted price Rolleyes

KopiKat · 13-09-2013, 01:48 PM

(13-09-2013, 01:30 PM)Greenrookie Wrote:
(13-09-2013, 12:09 PM)KopiKat Wrote: Extracts from UOBKH report,

Potential near-term dilution. We see a potential near-term 2-3% dilution of DPU as the acquisition is currently 50% occupied, and would need some time to be fully leased out.

Can attached the report? I from Uobkayhian too, but can't find the report lei...
That will means post dilution DPU will be 9 cents

Sorry, using hp earlier and rather challenging to perform even simple cut-and-paste tasks.... It's in email form, extracts as follows,

Sabana REIT (SSREIT SP) HOLD
Price/Tgt: S$1.13/S$1.29 Mkt Cap: S$731m/ US$577m Daily Vol: US$1.5m
1-Yr Hi/Lo: S$1.38/S$1.09 Current/Forward Dividend Yield: 8.5%/8.2%

SP: Sabana REIT (SSREIT SP): Private Placement raises S$40m.
Analyst: Terence Khi/ Vikrant Pandey Tel: (65) 6590 6614/6590 6623

· Private placement of 40m units. Sabana REIT (Sabana) has completed a private placement of 40m new units at an issue price of S$1.00 per unit to raise gross proceeds of S$40.0m. Net proceeds are approximately S$39.2m after fees. The 40m new units represent a 6.2% increase from the 649.7m units in issue as at 30 June 2013. The underwriters are HSBC and Morgan Stanley.

· Placement price at 9.6% discount to VWAP. The placement price of S$1.00 per unit represents a 9.6% discount to the adjusted Volume Weighted Average Price (VWAP) of S$1.1066 per unit for trades done on 12 September (less the proposed advanced distribution) and at a 11.1% discount to the last traded price of S$1.125 per unit. The issue price also represents an 8.3% discount to the adjusted NAV per unit of S$1.09 as at 30 Jun 2013.

· Proceeds used to partially fund acquisition of AMD factory. The net proceeds of S$39.2m will be used to fund 58% of the S$67.2m acquisition of the Advanced Micro Devices’ (AMD) light industrial building at 508 Chai Chee Lane which was announced on 22 August.

· Proposed advanced distribution of 2.2 S cents. Sabana has also announced an estimated advanced distribution of 2.2 S cents for the period 1 July to the date prior to which the new units are issued (estimated 24 September 2013). Details will be announced at a later date when the management accounts for the period has been finalised.

· Aggregate leverage remain at 37.2%, following the acquisition and the private placement, relatively unchanged from the 37.1% as at 30 June 2013. We had earlier estimated that if the acquisition had been fully-funded by debt, gearing would have reached 40.5%.

· Potential near-term dilution. We see a potential near-term 2-3% dilution of DPU as the acquisition is currently 50% occupied, and would need some time to be fully leased out.

· We currently have a HOLD on Sabana with a target price of S$1.29 based on DDM (required rated of return:8.1%, terminal growth of 1.8%). We may relook our DPU assumptions as we had factored the acquisition to be fully-funded by debt.

specuvestor · 13-09-2013, 01:54 PM

(13-09-2013, 10:21 AM)felixleong Wrote: now sabana is trading below book, time to buy? or is management a big red flag?

they sold out their shares twice before doing a placement and dooming the share price... claps claps

sorry when and what price did mgt sell?

Is that Shariah compliant? Big Grin

**CityFarmer** · 13-09-2013, 03:07 PM

Dear Buddies,

No further discussion on Sharia law, and please re-focus back to economical issues.

I will delete those inappropriate post(s), in moderator opinion.

Regards
Moderator

~~felixleong~~ · 13-09-2013, 03:18 PM

(13-09-2013, 01:54 PM)specuvestor Wrote:
(13-09-2013, 10:21 AM)felixleong Wrote: now sabana is trading below book, time to buy? or is management a big red flag?

they sold out their shares twice before doing a placement and dooming the share price... claps claps

sorry when and what price did mgt sell?

Is that Shariah compliant?

they sold twice this year, price was 1.2x and 1.1x
was posted in this thread, maybe you wanna check the pages back

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