SINGAPORE (Nov 24): Shares of Sabana Shari'ah Compliant REIT have fallen more than 20% so far this year amid concerns about a bulk of expiring master leases.

But UOB Kay Hian says even assuming a 50% drop in occupancy rate and 30% fall in rents on rental renewal, the Singapore-listed real estate investment trust still offers a healthy 7% yield.

The research house says the lack of clarity over nine expiring master leases are due for renewal on Nov 26 has resulted in a sharp share-price correction, but investors’ wariness over efforts to renew the company’s expiring leases may be overdone, presenting opportunity as negatives are factored in.

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