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, January 25, 2013

Analysis of Sabana REIT

Current Price on 18th Jan 2013 = $1.185

  • Current Yield = 8.14%  
  • Price-to-book Ratio = 1.082
  • Assets per unit = $1.801
  • Debt per unit = $0.706 (including current liabilities)
  • Gearing = 39.2%

Sabana REIT has reported its results which cause it to rise 3 cents on 18th Jan to $1.185. It pushes the yield to 8.14% which satisfy my criteria. But the price-to-book ratio is 1.082 which I don't really understand why because there are other REITs which are trading at lower yield but at the same ratio. Gearing is at 39.2% which is close to the 40% threshold.

Sabana REIT has the second highest yield, losing only to Religare Health Trust. But if you omit RHT which has its assets in India (and I consider it high risk), they are the best. And the third in line is Cambridge Industrial Trust which is about 1% away from Sabana REIT. Thus, from my point of view, it is the most attractive REIT at the moment (and for a while already).

My only concern is its Price-to-Book Ratio which I am still figuring out why it is the case. Maybe the next valuation report will shed more light to it.

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