What is the news?

Sabana Shari'ah Compliant REIT ("Sabana REIT") announced its 2Q FY15 (Y/E Dec) results on 16 July after trading hours. We tuned in to the Analyst Briefing conference call earlier this morning.

Analyst briefing key takeaways

The portfolio is facing concentrated lease expiries. 51.3% of the portfolio NLA is due for renewal in 2015.

Eleven Master-leases expiring this year; three to be converted to Multi-tenanted. Of the eleven Master-leases that are expiring this year, one will be at the end of 3Q15 while the remaining ten will be in 4Q15. The Manager is negotiating with eight of the eleven for renewal of the Master-leases, and has plans to convert three to Multitenanted leases.

Pro-active lease management to achieve better lease expiry profile going forward. The Manager highlighted that after the Master-leases are renewed, the lease expiry profile will be better distributed, thus reducing the concentration risk in a single year.

Investment Action

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

Source: Phillip Securities Research - 21 Jul 2015