Stock Name: Sabana REIT
Company Name: SABANA SHARI'AH COMPLIANT REIT
Daiwa Capital in a Sept 12 research report says: "Sabana announced on Sept 11 the proposed acquisitions of 2 Toh Tuck Link for $39.8 million and 3A Joo Koon Circle for $40.2 million. Both are sale and leaseback transactions on a triple net basis for a term of three years.
"We estimate that the acquisitions, both scheduled to be completed in 4Q11, would be distribution-per-unit (DPU) accretive. We have revised up our DPU forecasts by just over 5% for 2012-2013.
"We estimate that Sabana has debt headroom (of Islamic debt) of about $120 million before reaching a gearing of 40%, which we still regard as a comfortable level. We maintain our six-month target price of $1.05, based on a finite-life Gordon Growth Model. OUTPERFORM."
Company Name: SABANA SHARI'AH COMPLIANT REIT
| Research House: Daiwa | Price Call: BUY | Target Price: 1.05 |
Daiwa Capital in a Sept 12 research report says: "Sabana announced on Sept 11 the proposed acquisitions of 2 Toh Tuck Link for $39.8 million and 3A Joo Koon Circle for $40.2 million. Both are sale and leaseback transactions on a triple net basis for a term of three years.
"We estimate that the acquisitions, both scheduled to be completed in 4Q11, would be distribution-per-unit (DPU) accretive. We have revised up our DPU forecasts by just over 5% for 2012-2013.
"We estimate that Sabana has debt headroom (of Islamic debt) of about $120 million before reaching a gearing of 40%, which we still regard as a comfortable level. We maintain our six-month target price of $1.05, based on a finite-life Gordon Growth Model. OUTPERFORM."
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