SEO Version
9
Unit price performance
(1)
Ftse St
Re Invest
Trust
Sabana
Shari’ah
Compliant
Reit
Ftse Sti
% Change since IPO (14.17)
(16.67)
(16.23)
% Change in 2011
(16.04)
(10.26)
(17.04)
Post IPO, we continue to source for quality assets
to enhance our portfolio. By the fourth quarter of
2011, we were able to add five new properties,
expanding the portfolio past the S$1.0 billion mark.
These new properties are all strategically located and
yield-accretive. Their new master leases have helped
reduce the portfolio’s lease expiry concentration in
2013 and 2015 by 10.1% and 2.8% respectively. In
addition, the acquisitions improved our portfolio’s
asset diversifcation, broadened our tenant base, and
reduced dependence on any single asset class for our
income stream.
Securing New Funding Options
We continue to explore different sources and methods
of funding. In 2011, we were able to secure lower all-in
cost of new debt to fund the new acquisitions. The fve
new acquisitions were funded at approximately 3.9%
per annum and lower, compared to 4.8% per annum
at its IPO.
Along with enhanced funding, we are happy to report
that Standard & Poor’s has rated Sabana Shari’ah
Compliant REIT a ‘BBB-‘ long-term corporate credit
rating and ‘axA-‘ ASEAN scale rating with a stable
outlook. This occurred in July 2011 — less than a
year since the Trust’s listing, and at a time when the
global markets were plagued with uncertainties. With
the credit rating, Sabana Shari’ah Compliant REIT has
an aggregate leverage limit of up to 60.0%, enhancing
the Trust’s fnancial fexibility. As at 31 December 2011,
Sabana Shari’ah Compliant REIT’s aggregate leverage
was at 34.1%. Debt headroom was S$87.7 million
based on 39.0% gearing, representing further capacity
to support future acquisitions.
Addressing The Unit Price
Since its IPO, the unit price of Sabana Shari’ah
Compliant REIT has dipped 16.7%, due to general
market volatility, which has depressed stock prices in
the overall public market. While the unit price is lower
compared to that at IPO, data has shown that the Trust
is still in line with its peers and the overall stock market
(see Unit price performance chart). We are also pleased
that a number of industry analysts have maintained a
‘buy’ on Sabana Shari’ah Compliant REIT, that have
reaffrmed the positive outlook on its performance.
110
105
100
95
90
85
80
75
Rebased (%)
FTSE ST RE INV EST TRUST Sabana Shari’ah Compliant REIT
FTSE Straits Times Index
Shari’ah compliance not only increases our potential investor base,
compared to conventional REITs listed in Singapore, but also provides
access to more diverse sources of equity funding.
ANNUAL REPORT 2011
Broadening Our Investor Base
Our adherence to high Shari’ah compliance standards
provides Sabana Shari’ah Compliant REIT with the
opportunity to tap into an additional pool of capital
— that of Shari’ah investors in the Gulf region and
elsewhere. Shari’ah compliance not only increases our
potential investor base, compared to conventional REITs
listed in Singapore, but also provides access to more
diverse sources of equity funding.
Source: Bloomberg
(1) For the period from the listing date to 30 December 2011.
Nov 10
Jan 11
Dec 11
Powered by FlippingBook Publisher