- Current Yield = 8.69%
- Price-to-book Ratio = 1.012
- Assets per unit = $1.764
- Debt per unit = $0.682 (including current liabilities)
- Gearing = 38.7%
Sabana REIT has published its results which shows a very promising 8.69% yield. This is by far the highest yield REIT with properties based only in Singapore (something which I think is an advantage). Of course, the tricky part is that its price-to-book ratio is at 1.012 which means it is trading at 1% premium.
I have a weird feeling because there are other industrial REITs trading at a discount to NAV and yet its yield is below Sabana's. Thus, I was thinking of the methodology of valuation i.e. Sabana's capitalization rate is higher.
In any case, 8.69% yield is very high and I am thinking of switching to this REIT from Cambridge or AIMSAMP REIT which I am currently holding on to.
Sabana may incur negative income growth if it's occupancy drops next yr. not just historical yield but also yield growthReplyDelete