Sabana Reit

Sabana Reit: Reported 2Q12 results which was ahead of estimates. DPU at 2.27c (9% annualized yield), +4.1% yoy, exceeding forecast of 2.17c, for 2Q12. NPI at $19.1M, +15.3% YOY, while income available for distribution rose 4.7% to $14.5m. (REIT had initially forecast NPI of $16.5m and distributable income of $13.8m) Overall increase in revenue and property income was due to contribution from new properties acquired in 4Q11. Total portfolio occupancy was 99.9% for 2Q12 with 19 buildings under master leases and one multi-tenanted building. At current price, grp trades at 1x P/B with a forecasted FY12 yield of 8.7%, while leverage stood at a comfortable 34.1%, leaving debt headroom of approx. $86.9m.