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.

Tuesday, August 1, 2017

Analysis of Sabana REIT - Now what?

Current Price on 27th July 2017 = $0.46
  • Yield = 7.12%  
  • Price-to-book Ratio = 0.792
  • Assets per unit = $0.944
  • Debt per unit = $0.369 (including current liabilities)
  • Gearing = 39.1%
  • Secured NAV = $0.315 (69% of trading price)
Sabana REIT has delivered a set of results which is not really good because their DPU continues to go down. It has an impact on their share price which is at $0.46. It has actually recovered from my earlier post of $0.425 which could have been an entry price. I delayed my decision and paid the price. Let's take a look at the statistics.

With a yield of 7.12%, it is not exciting. There are others like Soilbuild Business Space REIT and Viva Industrial Trust which are giving a higher yield. However, they are still trading at a discount to NAV. It is about 20% discount which is quite rare in the current investing climate. Well, there are cheaper ones around like Dasin Retail Trust, Accordia Golf Trust which are overseas, and Far East Hospitality Trust, Keppel REIT whose yield is actually lower. Gearing is at a good 39.1% but I expect this to go lower.

I am vested with 106,500 shares worth close to $50,000 and I am holding on to the long haul simply because they are trading at a discount to NAV. Valuation may be dropping but I don't think it will go very low. With the strategic review still in motion, they might just spring a surprise.


  1. Their revenue, NI and operating cash flow are all getting worse. What's your opinion on that?