SabanaREIT

SabanaREIT: DPU of 2.18c declared, 1.3% higher than forecasted. 2Q Rev at $17.4m with net income at $12.3m. NPI of $16.5m was in line with IPO forecast. Co has approx debt headroom of $119.5m based on current 34% gearing and weighted avg lease term to expiry of 3.2 yrs. At current price of $0.945, annualized DPU is approx 9.2%. Co is positive on industrial sector as a whole. Recall most recent industrial rents grew 4.5% in 2Q, 7th consecutive qoq increase though growth is slowing (8.3% in 1Q11).