Sabana release its Q1 results.
Q1 DPU is 1.88 cents is lower than the 2 cents that I projected.
2 cents is already 10% fall of DPU from Q4, and 20% fall in Q3.
Although Gross rent is more or less stable, the costs of converting to multi-tenants is really horrible, and out of control.
When Sabana has 100% Master leases, NPI is about 0.94 time of GPI.
I expect NPI to be 0.8-0.85 times of GPI, since more than half of its leases are still master leases, but it is 0.75 times of GPI
So, the fall is not one-off. The cost of fall is recurring. From QR:
(b) Property expenses increased by 394.4% mainly due to:
(i) Property and lease management fees incurred for the Acquisition Property;
(ii) Higher property tax, maintenance, utilities and applicable land rent expense, in line with the ......