Sabana REIT

Sabana REIT: DPU of 2.34c declared for 3Q, annualized yield of 8.2%. Distributable income also rose 10.0% yoy and 3.4% qoq to $15m. 3Q12 rev was $20.3m (+16.7% yoy, -0.2% qoq) and Net Property Income (NPI) hit $19.1m (+16.6% yoy, +0.2% qoq) due to the acquisition of five properties in 4Q11 and the completion of another acquisition in 3Q12. Assets under management touched S$1.1b with the completion of the acquisition of 23 Serangoon North Ave 5 at S$61m on 1 Oct. Weighted avg lease term is approx 2.4 yrs with majority in 2013. Aggregate leverage at 38.3% Cites MTI figures that Sg economy grew 1.3% on a yoy basis and Savills Sg also expects industrial property prices to increase by 5.1% in 4Q2012 and 2.5% in 1Q2013. Counter goes ex-distribution on 24 Oct with payment date on 28 Nov 2012. UOB KH maintains Buy though lowers TP to $1.29 from $1.25 after factoring dilution from its $80m convertible bond. At 8.4% div yield, co is the highest yielding among S-REITs.