Sabana REIT

Sabana REIT: Sabana REIT recorded 1Q14 distributable income of $13m (-16%) and DPU of 1.88¢ (-22%) mainly due to lower NPI on rental income for a major tenant due to straight‐lining adjustments - an accounting treatment. Gross revenue improved 14% to $24.6m on recently acquired (Sep'13) property at 508 Chai Chee Lane and higher rental revenue from 151 Lorong Chuan on conversion from single to multi tenanted lease arrangements, while NPI declined 9% to $18.4m on higher property expenses as direct-managed properties increased from one to six. Portfolio occupancy dipped 0.6ppts to 90.6% with weighted average lease to expiry of 2 years. Aggregate leverage increased marginally (+0.1ppts) to 37%, at average 4.1% interest cost and weighted average tenor of 2.7 years. At $1.085, Sabana REIT trades at 1x P/B.