SEO Version
11
Operations & Financial Review
Start 4Q
1Q
2Q
3Q
4Q
2011
2010
2011
2011
2011
2011
0.87
2.17
2.18
2.14
2.17
9.53
Actual DPU (cents) from
26 November 2010 to 31 December 2011
9.53
7.36
5.22
3.04
0.87
9.48
7.31
5.13
2.98
0.85
4Q
1Q
2Q
3Q
4Q
2010
2011
2011
2011
2011
Cumulative DPU (cents)
26 November 2010 to 31 December 2011
Actual
Forecast
(1)
The significant reasons for Sabana Shari’ah Compliant REIT’s
better-than-expected performance in FY2011 were the high
quality of its initial portfolio and the Manager’s discipline and
focus on meeting goals announced at the IPO. This includes
actively managing its existing portfolio properties, maintaining
a prudent capital and risk management strategy and being
highly selective in its acquisitions. The Trust delivered a DPU
that surpassed the IPO forecast while positioning itself for
potential DPU growth in 2012.
Financial Performance
From the date of commencement of its operations on 26
November 2010 to the financial period ended 31 December
2011, Sabana Shari’ah Compliant REIT exceeded its
gross revenue and NPI IPO forecasts by 2.0% and 1.1%,
respectively. Total distributable income was S$60.6 million,
surpassing its forecast by 0.9%. Annualised DPU was 8.67
cents, 0.5% higher than the IPO forecast of 8.63 cents.
Based on the IPO price of S$1.05, the annualised distribution
yield was 8.26%, above the IPO forecast of 8.22%.
Solid Balance Sheet
As at 31 December 2011, Sabana Shari’ah Compliant
REIT’s total asset base stood at approximately S$1.1
billion. As at the end of the financial period, the Trust’s
NAV was S$1.07 per unit, an increase of 8.1% from pro
forma NAV as at listing date. This is attributable to the
S$51.3 million gains on revaluation of the Trust’s initial
15 properties by independent valuers, recognised in the
third quarter of 2011.
Prudent Capital Management
Since listing, the Manager has taken a prudent approach
to managing the capital and liquidity requirements of
Sabana Shari’ah Compliant REIT. As at 31 December
2011, the Trust had strong cash and cash equivalents
of S$31.8 million and a healthy working capital in excess
of S$6.3 million. Cash flow generated from operations
was S$103.6 million. Net proceeds from the listing of
the Trust and the drawdown of credit facilities were
primarily used for the purchase of the investment
properties, payment of issue expenses and financing
costs, in line with the intended applications as stated
in the Prospectus.
Liquidity Management
The Manager continued to explore new options to
strengthen the capital structure of Sabana Shari’ah
Compliant REIT, such as securing different tranches of
Shari’ah compliant debt to ensure greater diversification
and flexibility.
In November 2011, the Manager secured an additional
financing package of up to approximately S$144.3
million, comprising a three-year Term Commodity
Murabaha Facility of S$100.3 million (maturing on 21
November 2014), as well as a two-year TermCommodity
Murabaha Facility of S$32.0 million (maturing on 26
November 2013). In addition, the Trust committed to
a two-year Revolving Commodity Murabaha Facility of
S$12.0 million, which is renewable on a quarterly basis
(2)
.
These were built upon an initial three-year Commodity
Murabaha facility of S$220.6 million (maturing on 26
November 2013).
Successfully securing the additional funding enabled the
Manager to spread out the dates of maturity between
2013 and 2014, allowing Sabana Shari’ah Compliant
REIT to have greater debt headroom. In addition, the
Manager was able to negotiate the additional debt at a
lower pricing, resulting in a lower all-in-cost of debt on
the overall for the Trust.
(1) Based on the forecast, together with the accompanying assumptions,
shown in the Prospectus.
(2) The Revolving Commodity Murabaha Facility was fully drawn down as
at 31 December 2011 and will expire on 26 November 2013.
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