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Welcome to my investment blog where I share with you my analysis of REITs in Singapore.

I hope that my investment philosophy will bring me a steady stream of income apart from my job. I am aiming for at least $3,000 per month which can sustain the current expenses of myself and my family.

Do enjoy reading my blog and post any comments that you have. I welcome them because it is a time to learn from each other.

When I am looking at investing in REIT, here are some of the guidelines that I am looking at. Feel free to comment on it. I am willing to listen to ideas.

-> at least 8% yield.
-> Price that is lower than its NAV.
-> Low gearing (if possible)
-> High secured NAV.

Current Dividend income is $3,800/month.

Thursday, April 25, 2013

Analysis of Sabana REIT


Current Price on 19th Apr 2013 = $1.37
  • Current Yield = 7.04%  
  • Price-to-book Ratio = 1.262
  • Assets per unit = $1.794
  • Debt per unit = $0.708 (including current liabilities)
  • Gearing = 39.5%
Sabana REIT has published its results which pushes its price up to $1.37 which is fantastic. Despite being at high price, its yield is still at 7.04% which is good. But its price-to-book ratio is also very high at 1.262.

 Comparing to its peers, AIMSAMP REIT seems a better deal as its yield is very close and it has a better price-to-book ratio. Nevertheless this is still a good deal for its yield.

 I remember missing this when I tried to buy at $1.20. Somehow I have forgotten about it and let it slip to this price. Again I regretted it. Well, I will need to be more focused and do my analysis more regularly. (Have been busy at work). I will be thinking about this and weigh it against AIMSAMP REIT, Rickmers, Global Investment Limited, and Religare to see which one is the best to enter.
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2 comments:

  1. UnknownApril 25, 2013 at 1:38 PM

    Hi, thanks for the analysis. According tks SGREIT blog, the Net Asset Value (NAV) for sabanna REIT is way below current market price. What's your view on that? in fact where do you think th.e target price should be for taking profits?
    I think as soon as dividend payout drops to <4.5%, i'll be worried

    ReplyDelete
    Replies
    1. jc.education.sgMay 4, 2013 at 5:34 AM

      When NAV is way below the market price, it means that we are actually paying more for the properties. Thus, it is not really good. I prefer REITs with NAV higher than market price. But these days, it is hard to find.

      I don't really have a target price when I analyze. I continue to stick to the guidelines that I wrote in the introduction for your reference. :-)

      Delete

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