Analysis of Sabana REIT - It has to get better

Current Price on 13th Jan 2019 = $0.405

• Yield = 9.38%  
• Price-to-book Ratio = 0.689
• Assets per unit = $0.962
• Debt per unit = $0.374 (including current liabilities)
• Gearing = 38.9%
• Secured NAV = $0.255 (68% of trading price

Sabana REIT is one of my key investments despite all the negative media reports which they attract. It helps to push the price down and lowered my entry price which I thought was good. Here is the analysis.

With a yield of 9.38%, it is one of the highest yielding REIT in SGX. Probably Sasseur REIT has a higher yield. LippoMalls Indonesia REIT's yield has dropped with the recent rally back to their previous price and is now lower than Sabana REIT. Their price-to-book ratio is 0.689 which means we are buying at more than 30% discount to NAV. Gearing is at a pretty healthy state of 38.9%.

With the recent change in CEO and him addressing the media, getting the lease in so that our revenue improves, I just thought that it could only get better. With higher yield, their price should go up to a level for small REITs which is around 8.5%.

I am holding on to about 160,000 shares, giving me a good yield of about $500 per month (aka $1500 per quarter). Not bad. It is substantial enough to pay some of my bills. With the recent outlook, there is room to hold on to these shares.