Current Price on 17th August 2012 = $1.035
- Current Yield = 8.77%
- Price-to-book Ratio = 0.964
- Assets per unit = $1.70
- Debt per unit = $0.627
- Gearing = 36.9%
Here is an analysis of Sabana REIT which I see it as a laggard in the S-REIT sector.
Current yield is at 8.77% which is currently the highest in the market. In fact, it is now the only REIT which fulfills my criteria of 8%. Moreover, it is trading at a discount to NAV although it is close to 1. Its gearing is at a comfortable 36.9%.
Trading price has been rising steadily these days although it is at a much slower pace compared to its peers. I think this presents an opportunity to make inroads and invest in this high yield REIT given the current situation where you don't have much of a choice left. One issue to think about would be its price-to-book ratio which is already very close to one. If its price goes above $1.074, it would become a premium REIT which is not favourable anymore.
I got one lot at IPO price and will be loading this soon once I have investible cash (which is coming soon.)
Current yield is at 8.77% which is currently the highest in the market. In fact, it is now the only REIT which fulfills my criteria of 8%. Moreover, it is trading at a discount to NAV although it is close to 1. Its gearing is at a comfortable 36.9%.
Trading price has been rising steadily these days although it is at a much slower pace compared to its peers. I think this presents an opportunity to make inroads and invest in this high yield REIT given the current situation where you don't have much of a choice left. One issue to think about would be its price-to-book ratio which is already very close to one. If its price goes above $1.074, it would become a premium REIT which is not favourable anymore.
I got one lot at IPO price and will be loading this soon once I have investible cash (which is coming soon.)
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