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CapitaLand Integrated Commercial Trust s(SGX:C38U)
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sangsang1
Senior |
17-Oct-2025 22:59
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aiyo, you forgetting that the property manager also earn $1.4m from the REIT.. so once removed, $2.6m in profit can be saved! This means cost can be covered in a short 5 years and shareholders get $2.6m per year for free after that!  most importantly, the reit has been doing very well after internalisation.. before internalisation, manager say very challenging market, need to merge with ESR reit.. but now, seems like what Quarzt say is correct, so many things can be improved. maybe manager understand their time is limited and need to do more to get performance fee and bonus before exiting. |
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mrmarket1980
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16-Oct-2025 10:54
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In the recent 1H2025 results announcement, presentation slide 13 highlights that from FY2023 to 1H2025, the REIT retained $7.19 million in distributions. Including the 17% tax paid to IRAS, amounting to $1.47 million, due to the 10% distribution retention rule (Refer to financial statements page 18 for the explanation of this tax ruling), the total effective amount withheld from unitholders rises to $8.66 million. As at 30 June 2025, the REIT has incurred $12.22 million in internalisation related costs. However, if the 17% tax paid (which could have been avoided without the internalisation) is included, the actual cost of internalisation rises to $13.69 million. After offsetting the $7.19 million of retained distributions after tax, the REIT still faces a funding gap of approximately $5.03 million. To cover this shortfall, the REIT would need to draw on additional borrowings. At the prevailing interest rate of 4.47% (as of 30 June 2025), this would translate into an estimated $225,000 per year in extra interest expenses. But the cost implications extend further. The $8.66 million that was withheld could have been distributed to unitholders under normal circumstances, if there were no internalisation. If that distribution had instead been reinvested by unitholders back into the REIT at a conservative yield of 7%, it could have generated approximately $606,000 annually. These are returns now effectively forgone due to internalisation. All of this raises a fundamental question: Was internalisation the right move, and was it timed appropriately? While internalisation is often justified on the basis of long term alignment and potential cost savings, the immediate financial burden appears substantial. Unitholders are absorbing significant upfront costs, not only through higher borrowing, but also through foregone distributions that could have generated meaningful returns over time. Whether the long term benefits eventually outweigh these short term sacrifices remains to be seen. But for now, its clear that the internalisation has come at a high cost, one that unitholders are already starting to bear. |
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mrmarket1980
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16-Oct-2025 10:08
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https://www.businesstimes.com.sg/companies-markets/cost-savings-internalisation-sabana-reits-manager-grossly-overstated-esr-group As highlighted in the article above, the current external manager annual profit is approximately $1.26 million. In contrast, the internalisation process has already cost over $12 million, and these costs continue to accumulate. At this rate, it would take at least 10 years just to break even. Furthermore, the newly appointed CEO and CFO of the internal manager are likely to command higher compensation than the current management team. Given the scale of responsibility and the operational challenges involved, essentially building a management platform from the ground up, it is difficult to imagine why experienced professionals would take on these roles, if not for the substantial pay package. Additionally, according to the trustee' s statement dated 22 August 2025, the internal manager is also planning to appoint a head of real estate and a chief investment officer, on top of the CEO and CFO, bringing the total to four senior management, compared to just three senior management in the current external manager. The addition of one extra senior management could easily cost the REIT an additional $300k annually. Will the REIT truly achieve cost savings equivalent to the $1.26 million annual profit currently earned by the external manager? The numbers and risks suggest otherwise. |
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Alignment
Elite |
12-Oct-2025 22:35
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Exactly right
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sangsang1
Senior |
10-Oct-2025 19:25
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lmao.. before internalisation.. current manager recommend to merge with esr reit at 37.8 cents. at esr current price... maybe offer only 27 cents... say very challenging and difficult to grow DPU as small reit and portfolio hor...DPU also jialat then... after shareholders vote to go internalisation.. now finally show the full potential of the reit  funny la these guys...i tnk DPU got potential to further chiong after internalisation with the cost savings. they found a good team  |
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eddyeddy
Master |
08-Oct-2025 10:37
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Before the internal manager take over, DPU increased so much , unit price also went up . Do we need to spend 13m to change the manager at all ? All were conned by the internalization manager team. | ||||
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Alignment
Elite |
25-Aug-2025 17:33
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Not sure what you mean by the Alog shareholders not forgiving her. I was a Alog shareholder, and the merger with ESR REIT was a great deal for Alog and a bad deal for ESR REIT. ESR REIT overpaid. Clearly most of the offer was in ESR REIT shares and ESR REIT share price has not done well since the deal closed, so if the shareholders you mention held on to the ESR REIT shares then I can imagine them being upset. But that was their mistake in holding on to ESR REIT shares rather than selling them fast. You can' t (or rather should not) blame ARA management for that.
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Rocket888
Member |
25-Aug-2025 17:33
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Internal better than esr | ||||
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Alignment
Elite |
25-Aug-2025 17:29
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No not scared. CEO does not have much power over strategy anyway, which now resides with the board post internalisation. Sabana has good assets and is trading significantly below NAV. Left to itself shareholders will do well. The risk is being bought out cheaply like the proposed ESR REIT merger tried to. The internalisation removes that risk.
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luckyguy3
Master |
25-Aug-2025 10:18
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I find it strange that ESR reit letting go of Karen in April, she was the ESR-Reit Deputy CEO and the next moment she becomes the CEO of Sabana.. hmm.. Dun forget she supported the merger of Alog with ESR reit and recommended the merger to Alog shareholders and I think some Alog shareholders up to now still cannot forgive her for that and now suddenly now a former ESR Reit deputy CEO becomes Sabana CEO.. Strange.. reminds me of the movie 无 间 道 。
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mrmarket1980
Member |
25-Aug-2025 09:51
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Been to a few of the recent Sabana REIT AGMs, and Quartz (The Activist) always talks about how the current management has conflicts of interest and keeps harping on how they were supportive of the 2020 merger. But now they are appointing someone with strong ESR ties? Kinda feels like they are going back on their own words. Its like shooting themselves in the foot.
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luckyguy3
Master |
24-Aug-2025 23:19
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Not scared 无 间 道 ？
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Alignment
Elite |
24-Aug-2025 22:22
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Being able to secure someone with her background I would say is a positive signal - she would have had many good career opportunities and the fact she was willing to choose this one bodes well. That would be my main takeaway. Operationally I am sure she is suitable for the job given her previous roles, but I pretty much take that as a given anyway. | ||||
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luckyguy3
Master |
24-Aug-2025 11:38
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Strange that you only mention ALog, but never mention she was the deputy CEO of ESR Reit.. very strange indeed So, ESR reit let their Deputy CEO Karen go so that she can become CEO of Sabana reit. So many ppl to look for, they want to look for someone related to ESR reit.. 
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Joelton
Supreme |
23-Aug-2025 09:59
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Former ALog Trust chief Karen Lee to lead Sabana Reit&rsquo s internal manager
The Reit&rsquo s trustee also names two new directors to the board of the internal manager
[SINGAPORE] Karen Lee, who previously helmed Ara Logos Logistics Trust (ALog Trust), is expected to be named chief executive officer of the new internal manager of Sabana Industrial Reit.
In a bourse filing on Friday (Aug 22), the Reit&rsquo s trustee said that two directors have been appointed to the board of the internal manager &ndash Havard Chi and Bhavik Umesh Doshi.
Aside from Lee&rsquo s expected appointment as CEO of the internal manager, Goo Li Ling, formerly of Keppel Fund Management, is expected to be named as chief financial officer.
Lee was chief executive of ALog Trust&rsquo s manager from 2020 to 2022. After the trust&rsquo s merger with ESR Reit, she became deputy chief executive of the combined entity and led its growth strategy.
Goo was previously managing director for finance at Keppel Fund Management. The chartered accountant has over 20 years of experience in the real estate industry, having previously served as finance head at Suntec Reit&rsquo s manager.
Background checks on Lee and Goo have been completed by a third-party service provider, and the Reit&rsquo s trustee has provided the results to the Monetary Authority of Singapore (MAS).
The third-party service provider has also completed background checks on a candidate proposed for the role of chief investment officer and head of real estate, and submitted its findings to MAS.
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sangsang1
Senior |
23-Aug-2025 00:21
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Good news come liao
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luckyplate
Member |
29-Jul-2025 09:16
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Business are very hard to survive in singapore.. New policies ...coming in .. long term wise .. The mgmt of the reits will be very challenging and the team will need to be very smart .. to bring values to investor.
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luckyplate
Member |
29-Jul-2025 09:11
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Positive news for Sabana. Some Big shots are having a interest in sabana shares recently . Dividends is coming . if sabana can increase the occupancy rate .. it will be another plus .. for shares to rise .
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sangsang1
Senior |
25-Jul-2025 15:45
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aiyo... the 2 properties which have short lend lease which weigh down the portfolio can be redeveloped as its in an industrial area which garmen not likely to take back for other purposes. In exchange for spending $$$ on redevelopment, Sabana will request for lease top up.. then land tenure can become long again lo
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luckyguy3
Master |
25-Jul-2025 00:30
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Sabana Reit land lease expiry now is 25.9 years, closing down on 20 years, the inflection point when the decay in NTA will accelerate. Too close for comfort and to solve this Sabana reit will have to undergo disposal/acqusition and fund raising and shareholders would have to undergo painful " period" of restructuring consider that the 25.9 years is so short, the restructuring would have to be even larger scale. Good luck to those still holding Sabana reit.
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