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, January 9, 2014

Analysis of Sabana REIT

Current Price on 3rd January 2014 = $1.075
  • Current Yield = 8.86%  
  • Price-to-book Ratio = 0.993
  • Assets per unit = $1.165
  • Debt per unit = $0.369 (including current liabilities)
  • Gearing = 38.7%

I sort of lost track of Sabana REIT recently so missed the chance to switch when it was at a low of $1.03. That was an ideal entrance stage.

With the current yield at 8.86%, it is the highest REIT with 100% exposure in SG only. I see this as a good point because SGD is one of the few currencies that is appreciating. Thus, foreign funds should flow into our country just because of currency fluctuation. Nevertheless, it does not really apply to me as a Singaporean.

In my previous post, I said that I was thinking of switching. But I did not follow through which resulted in the missed opportunity. It seems that there is still a chance of switching but need to analyze the cost impact because AIMSAMP Industrial REIT is also doing well and its yield is increasing as well.

1 comment:

  1. They were saying Sabana is having problem with the expiring leases & also 50% vacancy from their newly acquired property...

    So investor punished this counter.

    What do you think?