- Yield = 8.28%
- Price-to-book Ratio = 0.783
- Assets per unit = $0.917
- Debt per unit = $0.374 (including current liabilities)
- Gearing = 40.8%
- Secured NAV = $0.255 (60% of trading price)
Sabana REIT has recently delivered a set of results which I thought was good actually. Moreover, there is big boys interest i.e. e-Shang buying it which fuel speculation that it will also merge with the ESR REIT and Viva Industrial Trust. Let's take a look at the statistics.
Their yield is currently at 8.28% which is very high compared to other REITs. Viva Industrial Trust is yielding at around the same level. One advantage they have is that their price-to-book ratio is at 0.783 which means we are buying at close to 22% discount. This is attractive considering that the bigger REITs are trading at a premium.
In my previous analysis, I thought it is a time to buy. The problem is that I did not as I used up the funds to participate in the rights issue of ESR REIT. If I have bought it earlier, I would have gained about 8% in capital return. With the current price, I believe it can move higher when things are more settled in Sabana REIT and the occupancy goes up.
Their yield is currently at 8.28% which is very high compared to other REITs. Viva Industrial Trust is yielding at around the same level. One advantage they have is that their price-to-book ratio is at 0.783 which means we are buying at close to 22% discount. This is attractive considering that the bigger REITs are trading at a premium.
In my previous analysis, I thought it is a time to buy. The problem is that I did not as I used up the funds to participate in the rights issue of ESR REIT. If I have bought it earlier, I would have gained about 8% in capital return. With the current price, I believe it can move higher when things are more settled in Sabana REIT and the occupancy goes up.
HiHi, thanks for the nice write-up. Do you think the current new CEO is doing a good job? Will you also be allocating some funds into Sabana eventually?
ReplyDeleteI used to own Sabana but sold it off later after seeing how hopeless their marketing team was in retaining tenants. Also they were having trouble getting new tenant. Growth via M&A record also zero from previous management.