Sabana REIT: Daiwa initiates at O/P with $1.05 TP. Note that REIT is a stable portfolio with rerating potential. Portfolio stands out from other industrial-property S-REITs for its exposure to the high-value-added high-tech industrial, chemical warehouse and logistics segments. Believe DPU accretive acquisitions could be highly positive unit-price drivers….
REIT however, faces some income uncertainty after its master leases begin to expire in Nov13. See limited downside risk from negative rental reversions as long as business-park sector continues to recover.