Sabana Shari’ah Compliant Industrial REIT is one industrial REIT that is slowly making us see the problem with Master Leases. This morning, there was an analyst report on Sabana by UOB Kay Hian. One paragraph at the start indicates the possible reasons why the stock have been underwhelming: Well there was an announcement this evening. You can read the announcement here. 3 of the properties, which are leased to their sponsor Vibrant Group, will be renewed for a total consideration of $10.5 mil. These 3 master lease will be renewed for 1 year. Below shows the value of the gross revenue for Sabana’s various properties during IPO: If we tally up the revenue from the 3 properties, they come up to S12.5 mil. This means the rent actually fall by 16% since that time. What would renewing only 1 year from their sponsor indicate? That the sponsor actually wanted to ......