Sabana Shari'ah Compliant REIT ("Sabana REIT") announced its 1Q FY15 (Y/E Dec) results on 20 April after market close. We tuned-in to the Analyst Briefing that was held on 21 April morning.

Analyst briefing key takeaways

4 Master-lease properties to be converted to Multi -tenanted – 11 Master-leases are expiring this year. The Manager is working to retain 7 of the 11 as Master leases, and to convert 4 to multi-tenant leases.

5 Sponsor-occupied Master-leases expiring this year – The Manager is working to get the Sponsor to renew 3 and negotiating with current anchor tenant to take up the lease.

Minimal rent-free periods given – Only 1 or 2-months rent-free period were given to renewals in the quarter.

Still a tenant's market – The Manager highlighted the challenging operating environment in seeking "qualified anchor tenants".

Investment Action

No stock rating or price target provided, as we do not have coverage on Sabana REIT.

Source: Phillip Securities Research - 22 Apr 2015