Sabana REIT announced a private placement of 40,000,000 units at $1.00 each. See announcement: here. This will increase the number of units in issue by 6.2%. Everything remaining equal, it would dilute the DPU by about 5.84%. However, everything will not remain equal since the money raised will go towards the purchase of a new property, 508 Chai Chee Lane, which will bump up DPU. So, the reduction in DPU from the placement is ameliorated. See announcement: here. The fall in unit price earlier this morning to a low of $1.055 which was a decline of some 6.3% from yesterday's closing price of $1.125 was overdone. Indeed, if expectations of positive rental reversions are realised by November 2013, at current prices (of under $1.10 a unit), Sabana REIT looks like a pretty good investment for income. We might be counting the chicks before they are hatched, of course. Related ......