Sabana Shari'ah REIT

[piggo]

It means they limit their potential tenants to businesses that fulfills the holy holy oh so holy beliefs of shariah.

This is extracted from Sabana-reit's home page. Click here

"Specifically, Sabana REIT is required to ensure that the total rental income from lessees, tenants and/or sub-tenants engaging in activities which are non-permissible under the Shari'ah Guidelines, which include activities relating to conventional financial and insurance services, gaming, non-halal production, tobacco-related products, non-permitted entertainment activities and stock-broking in non-compliant securities does not exceed 5.0% per annum of the gross revenue of Sabana REIT's portfolio of properties."

I was browsing their portfolios and it seems that being an industrial reit, it is highly unlikely that their lessees, tenants and or sub-tenants will bust their 5% threshhold. It may be easier for their limits to be reached in the case of retail i suppose. Dun think their business is limited by the shariah compliance at this point. Just my 2 cents worth.

Vested.

Thanks for pointing it out! Pays to read the finer lines It's based on total rental income, 5% may be hard to exceed for 1 tenant... but not so when combined. So they are still limiting themselves on "income opportunities" regardless of how good a deal it may be as compared to other industrial REITs. Not a good mix with the usual logic behind investing (i.e maximising returns).