- Yield = 9.76%
- Price-to-book Ratio = 0.616
- Assets per unit = $1.528
- Debt per unit = $0.644 (including current liabilities)
- Gearing = 42.1%
- Secured NAV = $0.438 (80% of trading price)
Yield is currently at 9.76% but there is a likely hood that it will drops further due to expiry of lease. One good news is that they are able to increase their occupancy to 90.0% which signify a recovery. They may have lease it at a lower rate but it is better than leaving it empty. Their price-to-NAV is much lower at 0.616 which means we are able to buy it at 38% discount. Gearing is at 42.1% and their secured NAV is at 80% of their trading price which show the level of margin of safety.
At this price of $0.545, it seems very very very low already. With the statistics getting more and more favourable, it seems a good time to enter the market although we are still looking at how Brexit is affecting the overall market. Will be looking closely and maybe I will start entering this counter very soon. (I have a very small portfolio on this)
I notice that the dividend of Sabana REIT reduced from 9.53 cents at 2011 to 6.85 cents at 2015.So the price of this REITS keeps drop. Do you have any comments on it?
ReplyDeleteNo doubt that they are struggling and there were issues with leasing which led to the drop in occupancy and also weaker commitment from master lessee. The question is whether you believe in it and whether you are willing to take this rough ride. And also to me, looking at the current statistics is more critical than the past.
Deleteother than sabana, what other REIT doare you looking and analyzing.?
ReplyDelete