Author: tfwee
Industrial REITs – OCBC
Summary: Industrial REITs have proven its defensive nature YTD, having generally outperformed both the broader REIT sector and STI. On the operational level, they also put up a strong showing. Going into 2012, we expect the industrial REITs to adopt a more cautious stance on their acquisition plans. On a brighter note, despite the lower expected investments, we still anticipate industrial REITs to rake up a good set of financial performance in 2012, thanks to their proactive approaches on investment/ asset enhancement activities over the past year, built-in rental escalations and possibly further positive rental reversions. We continue to maintain our OVERWEIGHT view on the industrial-REITs subsector. Industrial REITs, we note, offer one of the highest DPU yields in the REIT space. This is in addition to the relative stability and earnings visibility in their portfolio, backed by longer term leases, diversified tenant base and security deposits. In addition, they now have stronger financial positions and greater access to capital, unlike the difficult times seen in the global financial crisis. We maintain our BUYs for A-REIT and MLT, and single out CACHE as the preferred pick for this subsector.
Charities and Cause – 2011
Attention to Readers of Singapore REITs
Thank you for taking the time in expressing your view on the poll that was conducted from Nov 22 to Nov 30 2011. Children and Youth has the highest number of votes during the polling period. Thus, we have decided to donate to the Children’s Aid Society.
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Poll on Charities and Cause – 2011
Attention to Readers of Singapore REITs
As the year draws to an end, we are planning to start an annual tradition of donating to a charity, using part of the proceeds (perhaps we'll share our charity plans for the balance at a later date when the amount is a lot more meaningful) we'd collected from our adsense account. Since the money comes from our readers, we thought that it'd be more meaningful for the readers to make the decision on which charity to donate to.
Which charities and causes do you support? Please express your view on the poll that was setup on the sidebar.
Last day of polling is on 30 Nov 2011.
Sabana – BT
Sabana Reit to buy 21 Joo Koon Crescent for about $20.3m
Sabana Shari'ah Compliant Industrial Real Estate Investment Trust is proposing to buy 21 Joo Koon Crescent, a three-storey factory building with ancillary office, for $20.274 million from AVA Global.
Under the sale and leaseback deal, the seller will upon completion of the sale, take a master lease of the entire premises for a four-year term on a triple net basis. Sabana Reit's manager intends to fund the acquisition by debt.
This acquisition, along with the proposed acquisitions of 39 Ubi Road 1, 3A Joo Koon Circle and 2 Toh Tuck Link, announced earlier will see the Reit's aggregate leverage (gross borrowings divided by total deposited property value) rise to 35 per cent from 25.1 per cent at June 30, 2011.
21 Joo Koon Crescent is a JTC leasehold estate of 30+30 years tenure starting from Feb 16, 1994, with a remaining tenure of about 43 years. The proposed transaction is subject to approval from JTC, among other conditions.