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.

Monday, January 27, 2014

Analysis of Sabana REIT

Current Price on 24th January = $1.07
  • Current Yield = 8.19%  
  • Price-to-book Ratio = 0.977
  • Assets per unit = $1.791
  • Debt per unit = $0.696 (including current liabilities)
  • Gearing = 38.8%
  • Secured NAV = $0.257 (24%)

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.

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