Based on price at $0.93
- Current Yield = 9.28%
- Price-to-book Ratio = 0.936
- Assets per unit = $1.399
- Debt per unit = $0.405
- Gearing = 29.8%
Sabana REIT has been listed for quite a while already with its price hovering at $0.93 - $0.94. Therefore, it is time to do some analysis. Based on current price, I find Sabana REIT quite favourable. With its yield at 9.28%, it is one of the REIT with yield above 9% (other being AIMSAMP, Cambridge, and First REIT). Moreover, it is trading at a discount to its NAV which is also attractive.
I see this REIT as similar to AIMSAMP and Cambridge which does not have a strong sponsor and therefore is trading at a low price. However, I would prefer such REITs as it offers higher yield. My main purpose is to collect dividends which hopefully is substantial enough to cover my expenses.
I will continue to look at this closely to see if there is an opportunity to invest at a lower price. I don't have much cash at the moment to think about new investments so have to wait.