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SABANA REIT
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GoldenPig
Veteran |
20-Jul-2023 19:42
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Well-said. Full agree with you on all points.
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sangsang1
Senior |
20-Jul-2023 19:25
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Quarz is fighting for better price and dpu at sabana reit... same same what unitholders want i think all along, Quarz has said that the goal is to get back at NAV at 53 cents i think internalisation is going to be very good for shareholders .. if its bad, like what you say, the manager and sponsor will probably not be fighting it so hard... can teach the sabana shareholders a lesson mah if it fails. that they seem to be trying to do everything to make shareholders not to vote for it tells u everything...  |
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RumbaRambo
Member |
20-Jul-2023 17:51
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Hahaha, I am looking forward to media reports: " Sabana Reit, having new internal manager in place and among lowest leverage of SG REITs, gets loans cancelled!" This is NEVER going to happen.
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RumbaRambo
Member |
20-Jul-2023 17:40
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Sabana is reit with one of the lowest leverages. Once new manager with qualified personnel (not diffcult to find in SG) is in place, banks will say YES to existing loan agreements. Smooth transition, manager internalised, no reason for banks to refuse. The glass is not half empty, but half full.
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sangsang1
Senior |
20-Jul-2023 16:40
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well.... both the sponsor and the manager will end up with nothing if shareholders all vote to remove the manager Does that answer your question?? Have to think deeper la
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moonsun
Veteran |
20-Jul-2023 16:16
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Why banks recall ? Sabana bad credit ratings ?
Interest rate seems to have peak.. most speculating fed will lower rates come next yr.. guess banks will have to assess sabana credit worthiness independently rather than manager ? Dyodd |
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sangsang1
Senior |
20-Jul-2023 16:15
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the quarzt are not stupid. They rejected the merger and make money from it. They took away the share issue mandate so that shareholders cannot get diluted. Trustee already say very very clearly that old manager will be in place until new manager is setup and licensed then take over. Singapore got rules and regulation one. Just like SBS transit or singpost cannot 1 day to another say we stop work, then nobody can go to work and massive disruption? SP power say stop work la, then how we get our electricity? so there' s regulation and contract to make sure this does not happen same same in reits. MAS regulates REIT manager. they cannot suka suka resign. Only if trustee approve or mas say so, then they can resign, its written into contract. So they have to stay until new manager is up, transfer all the loan over. banks smart also. why pull loan when properties all there and lose a good reit client to their competitiors? u pull la, then other banks come in. then u forever lock out. its okay la, other people can be part of a bigger reit and help them get bigger by taking part in rights and placements at lower and lower than market price. manager will be very grateful to you when they earn more fees from you. sabana shareholder like small and smart reit which can increase dpu and share price for shareholders to huat huat huat! Leave sabana' s future to sabana' s shareholders
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GoldenPig
Veteran |
20-Jul-2023 15:58
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Why do you imagine the internalisation will cost only $3-4m? Seems it cost $50m for Croesus REIT to internalise. And Sabana trustee does not even want to try to put an estimate on the cost, which is not surprising considering the current high interest rates, high inflation and economic headwinds.
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sangsang1
Senior |
20-Jul-2023 15:16
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Sabana dividend is 33m a year.. to set up the manager probably cost $3-4m??? and then after that you dont need to pay any management fees, peformance fees forever after that after that??? Quarz already projects that 2+m of cost savings from removing the manager. And then DPU will increase by that going forward, forever and why would NAV get hit? portfolio remains the same hai ya..have to think abit deeper. Manager will lose the fees once they are removed. Is this probably why they are so against it?
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GoldenPig
Veteran |
20-Jul-2023 14:52
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To enjoy that, must first be prepared to lose 1 or 2 years of dividends? Also may need to wait that long for share price to recover after NAV is hit by cost of internalisation?
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luckyplate
Member |
20-Jul-2023 13:05
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I do understand some might prefer not to rock the boat .. But if we go internal , guarantee we can get lower cost and better mgmt ??
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luckyplate
Member |
20-Jul-2023 13:04
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i understand maybe it is good to move away from ESR .. But .. we need to retain the Good Manager Donald .. as well..
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RumbaRambo
Member |
20-Jul-2023 13:02
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Standard letter by EY, they have to publish that. Nothing to be alarmed. Banks will not call loans, they never have. Let' s go for internalisation and not listen to those who stand in the way of progress. Internalisation is the future for SG REIT market, well established in other countries.
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sangsang1
Senior |
20-Jul-2023 12:04
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The Manager wishes to inform unitholders of Sabana Industrial REIT (&ldquo Unitholders&rdquo ) that the High Court has today dismissed the Originating Application, including the Applicants&rsquo request for the Permanent Injunction. Injunction dismissed, EGM come liao, time for shareholders to remove the manager!!! The first time we reject the merger, Sabana go back to 43 cents. excited to see the upside for internalisation.. Huat ah!!!
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Joelton
Supreme |
20-Jul-2023 09:53
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Sabana REIT&rsquo s external auditor adds emphasis of the matter ahead of EGM to be held on Aug 7
Sabana Industrial REIT&rsquo s manager, Sabana Real Estate Investment Management (SREIM), announced on July 19, that its independent external auditors, Ernst & Young, has included an emphasis of matter in respect of a material uncertainty that may cast significant doubt on Sabana REIT&rsquo s ability to continue as a going concern depending on the outcome of an extraordinary general meeting requisitioned by Quarz Capital Asia. The EGM will be held at 10 am on Aug 7,
The Requisition is proposing, among others, a resolution that SREIM be removed as the manager of Sabana REIT &ldquo as soon as practicable should this resolution be passed&rdquo .
Material uncertainty arises because of the potential adverse consequences to the financial position of the REIT from the requisition.
Under Sabana REIT&rsquo s existing financing arrangements with various lenders, the removal of SREIM as manager of Sabana REIT would trigger the removal of manager clause that constitutes a review event. &ldquo Such review event, if triggered, may result in mandatory prepayment by Sabana Industrial REIT of its outstanding loans and interest if no satisfactory agreement is reached with the lenders, within a period of not more than 30 days or such longer period as the lenders may agree,&rdquo the July 19 announcement states.
The manager had written to the lenders to seek a waiver from the review event. &ldquo The lenders have replied that they are unable to grant the relevant waivers at the current juncture,&rdquo the announcement says.
On July 15, Sabana REIT&rsquo s trustee, HSBC Institutional Trust Services had its draft letter issued on SGXnet where it said that if the resolutions in the EGM passed, the process of internalisation could take &ldquo at least 12 months&rdquo . Fees, costs and expenses of the various advisers and lawyers would be passed on to the REIT.
As a matter of record, Croesus Retail Trust&rsquo s internalisation process cost its unitholders $50 million. Elsewhere, the cost of the REIT trustee overseeing the REIT, including identifying a new manager, and restructuring the debt including liquidation is believed to have run into millions.
Quarz Capital Asia has not estimated the impact on Sabana REIT&rsquo s DPU in the event the internalisation process runs into millions. For instance, a cost of $10 million for internalisation would have a 28% impact on the amount available for distribution. In 1H2023, Sabana REIT will be distributing $17.82 million to its unitholders.
HSBC trustee says it cannot estimate the time taken nor the cost in fees and expenses, that it will be charging to the REIT.
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Joelton
Supreme |
20-Jul-2023 09:52
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Sabana Reit H1 DPU up 1.3% to S$0.0161 on &lsquo strong operational performance&rsquo
SABANA Industrial Real Estate Investment Trust : M1GU 0% (Sabana Reit) posted a distribution per unit (DPU) of S$0.0161 for the first half of its fiscal year ended Jun 30, 2023, up 1.3 per cent from S$0.0159 in the corresponding year-ago period, its manager announced on Wednesday (Jul 19).
Gross revenue for H1 was up 23.2 per cent on year to S$55.3 million from S$44.9 million, mainly due to higher portfolio occupancy of 93.9 per cent. This is 2.6 percentage points higher than the 91.3 per cent recorded in the corresponding year-ago period, and a multi-year high, the manager said.
&ldquo The improvement in occupancy rate is underpinned by the strong leasing momentum backed by robust demand from third-party logistics providers in the first half of 2023,&rdquo it said.
In a media briefing on Wednesday, Donald Han, chief executive of the manager, said the Reit recorded steady or improved occupancies across all properties on Jun 30 from six months before.
But revenue growth was largely offset by higher property expenses, which grew year on year to S$28.1 million from S$17.8 million. This included higher utility costs. Net property income rose 0.5 per cent to S$27.2 million from S$27 million.
Total amount available for distribution came in at S$17.8 million, 3.9 per cent higher than the preceding year&rsquo s S$17.1 million.
&ldquo Despite operational challenges and intensified upheaval in recent months, we have stayed focused and delivered another set of impeccable financial results,&rdquo Han said.
&ldquo Equally important, our proactive tenant management and leasing strategy, including our focus on rentals, has enabled us to protect our valuation and NAV (net asset value), despite the challenge of declining land tenure.&rdquo
The Reit achieved an overall higher portfolio valuation of S$887.5 million as at Jun 30, 2023, from S$885.7 million as at end-December 2022. The Reit is &ldquo firmly focused on extracting value from (its) existing portfolio&rdquo , Han added.
The Reit is in the second phase of its strategy to &ldquo grow value&rdquo it plans to undertake asset-enhancement initiatives and selected rejuvenation of its portfolio.
It is also looking to move into the next phase of the strategy, where it would explore potential yield-accretive acquisitions, including overseas ones. Han said it is hoped that such acquisitions would include assets with longer lease tenures or freehold tenures.
Sabana Reit&rsquo s rental reversion for H1 came in at a record 20.1 per cent. It also posted a record 27.1 per cent rental reversion for Q2. The manager added that it has also renewed and replaced 52.5 per cent of its leases expiring in FY2023, with another 23.6 per cent under negotiation or lease documentation.
Han said the manager continues to be confident about certain segments such as warehouse and logistics. Segments like the high-tech industrial segment, however, are dependent on other markets such as the office market.
&ldquo If you see a slowdown in the office market, then you see backroom operations starting to slow down as well. And that will impact your business park and your high-tech in that sense,&rdquo he said, adding they are keeping an eye on the high-tech segment.
&ldquo We want to on-board tenants, and we will maintain our rates as competitive as possible to on-board tenants.The key is really to drive occupancy, and, at the same time, ensure that we end this year with a strong showing,&rdquo he said.
As at end-June, aggregate leverage stood at 32.5 per cent, and weighted average all-in cost of borrowing was 3.9 per cent, with 82.2 per cent of total borrowings hedged to fixed rates. The Reit&rsquo s weighted average debt maturity stands at 3.3 years, with no refinancing requirements until Q4 2025.
Sabana Reit&rsquo s independent auditor indicated an emphasis of matter as there was material uncertainty that may cast &ldquo significant doubt&rdquo on the Reit&rsquo s ability to continue as a going concern, depending on the outcome of an extraordinary general meeting (EGM) requisitioned by activist investor Quarz Capital.
Quarz is proposing that Sabana Real Estate Investment Management be removed as the Reit&rsquo s manager, which could affect financing arrangements with various lenders.
The High Court on Wednesday dismissed the originating application in which ESR Group, the ultimate owner of Sabana Reit&rsquo s manager, sought to have Quarz&rsquo s requisition rendered &ldquo invalid and/or ineffectual&rdquo . ESR was also unsuccessful in seeking a permanent injunction restraining the manager from taking steps to convene an EGM, pursuant to Quarz&rsquo requisition.
The EGM date has been changed. It will now be held at 10am on Aug 7.
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mrwise
Supreme |
20-Jul-2023 09:30
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Someone seems to be buying up Sabana shares for some reasons! Watch the ride up....Good show coming!! |
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asianguy
Senior |
19-Jul-2023 23:35
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ESR recently sold $330 million worth of properties at a 5.1 per cent discount to the latest valuation. The net proceeds (after deducting GST and fee) from the sale amount to about S$299.3 million, and the resulting net loss is about S$30.7 million. ESR is so desperate to raise money. i hope they are not using this money to launch a takeover in order to stop the EGM. |
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Alcus-Trader
Member |
19-Jul-2023 22:50
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The 1H 2023 financial statement shows EPS dropped from 2.28c to 0.90c, due to significant decrease in fair value of " financial derivatives" and " investment properties" |
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Huchin
Member |
19-Jul-2023 21:31
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dismissed! unitholders should dismissed them too! | ||||
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