Welcome

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.

Friday, October 21, 2016

Analysis of Sabana REIT - Bottoming out?

Current Price on 20th October 2016 = $0.53
  • Yield = 9.06%  
  • Price-to-book Ratio = 0.599
  • Assets per unit = $1.528
  • Debt per unit = $0.644 (including current liabilities)
  • Gearing = 42.1%
Sabana REIT has published their set of results which I thought was reasonable. I am vested with 41,000 shares which I earn close to $500 in dividends for this round. Let's take a look at the statistics.

With a yield of 9.06%, it is currently one of the highest yielding REIT with only local exposure. What is more attractive is that its price-to-book ratio is only 0.599 which means we are buying at a big discount of 40%. No doubt information on valuation is very limiting but this is still the best gauge for us retail investors. Their occupancy has been stable at 88% which is quite comparable to the big boys which are at around 91%.

There are a lot of talks on the management and thus the price is quite depressed. Well, I think it has already been priced in and this is a good opportunity to enter with such cheap valuation by the market. With some cash coming, this is one of my top choice to enter the market. My only consideration is that I am already heavily vested in industrial properties.

2 comments:

  1. Hi, what's your opinion for the Sabana REIT Right Issues? Thanks. The Rights Units will be offered on the basis of 42 Rights Units for every 100 existing units in Sabana REIT.

    ReplyDelete
  2. I think this is a good time to enter Sabana after dropping to SGD0.455, right?

    ReplyDelete