When people asked me whether they should invest in AIMS AMP Capital Industrial REIT or Sabana REIT recently, I asked them what are they after? If they are after a higher yield in the immediate future, Sabana REIT is the obvious choice.
Sabana REIT has declared a DPU of 2.27c, just 0.01c higher than in the last quarter. Annualised, this gives us 9.08c. Buying units of the REIT at $1.00 a piece would give us a distribution yield of 9.08%. Sabana REIT is probably the only one in the S-REIT universe now that is offering a distribution yield in excess of 9%.
Gearing: 34.1%
NAV/unit: $1.04
Interest cover ratio: 5.6x
Occupancy: 98.4% to 100%.
(Total occupancy rate: 99.9%)
Remaining land leases (average): 39.7 years.
The REIT's management should be working on leases expiring in 2013 soon, if they have not started already. Given that 47.......