SABANA INDUSTRIAL REIT’S 1H 2022 result is as Good as it can get in-line with expectation. Being consistent delivering and meeting high yield this makes the Reit quite attractive.
- DPU was 1.59 cents, 7.4% higher y-o-y. A slight increase if we compare to 2H21.
Yield of 7.07% annualized at $0.45 Stock Price.
There are items to monitor during this increasing rate cycle and Sabana has them listed as follow.
Capital Management
- Average all-in financing cost of 3.35%, interest coverage ratio at 4.0 times
- Aggregate leverage stood at 33.4%
Interest Exposure
- 75.3% of borrowings are on fixed rates with an average term of 2.4 years
- Every potential 20 bps increase in interest rates may result in $0.15m decrease in
distributable income or 0.5% reduction (equivalent to 0.01 cents) on DPU(1) per annum...
