Sabana REIT has reported its results which shows some worrying signs. I am grateful that there are readers who have alerted me to this and this report just confirms that they are right. It is important that we learn from each other and share our thoughts.
With its report, current yield has dropped to 8.19% which is still at a high range. The reason is that their multi-tenanted properties have registered only about 78% occupancy which is very low compared to other REITs at this point. Its yield, however, is still at the high range. Probably it is a much more risker REIT so people demand higher yield.
Its price-to-book ratio is also back below 1, at 0.977. Moreover, it starts to have secured NAV which is currently at 24%. There are some good signs following some weakness in its share price.
According to its slides, there is another 20% of its tenants with contracts expiring this year. It does not seem to be a good sign, thus its yield may continue to drop. They are in for a rough ride and I am going to wait until they show signs of recovery before putting my money in.