Analysis of Sabana REIT - Still in troubled times

Current Price on 26th Jan 2015 = $0.66

• Yield = 9.09%  
• Price-to-book Ratio = 0.742
• Assets per unit = $1.583
• Debt per unit = $0.696 (including current liabilities)
• Gearing = 43.9%

Sabana REIT just published their results which is quite disappointing as their distribution drops but quite a lot (more than 10%). Moreover, their valuation also drops by 9% according to their reports, which is very unfavourable. Let's look at the statistics.

With the drop in yield and NAV, the price has dropped to $0.66 which gives a yield of 9.09% currently. However, they are in the midst of negotiating another three properties for master lease and one conversion, I believe yield will continue to drop. Assets per unit has dropped which means their price-to-book ratio has risen to 0.742. Still not too bad considering the valuation at current economic climate and it is the cheapest among the Industrial REITs. Gearing is at a high of 43.9%. Please note that I use all liabilities instead of just debt.

From the statistics, it look promising, with high yield and favourable price-to-book ratio. However, with the problems coming up, I don't see the yield going up anytime. In fact, I do see it going down further. The only positive thing is its small size, which makes it a possible target for take over. I am vested only with 1,000 shares so will see what happens. Maybe a white knight will come if they see value in this, hopefully.