Sabana Shari'ah REIT

Not easy for ind building landlords to get tenants, especially big one. This is not a fantastic building at all.
All B1 ind buildings built less than 20 years have almost same specifications.

(17-09-2013, 05:19 PM)cfa Wrote: Sponsor only want to own 10% , worth pondering.

Acquisition don't even affect sponsor. They bought at less than $1. Take 3 years worth of dividends. After acquisition, price still above $1. They sit back relax collect money only.

at the current prices of sabana 1.11 soil build reit 0.72

which do u guys think is a better pick for someone wanting a allocate a bit into industrial reits?

(17-09-2013, 06:10 PM)felixleong Wrote: at the current prices of sabana 1.11 soil build reit 0.72

which do u guys think is a better pick for someone wanting a allocate a bit into industrial reits?

For Sabana, the short term uncertainties,
- xd tomorrow (19-Sep) for 2.2ct
- Placement shares (40mil @ $1) list on 24-Sep 9am
- Lease renewals still not finalised
- Gearing remains high @ 37.1% (need to do Rights Issue soon else will have to resort to more dilutive Placements @ big discounts)

For SB REIT, the uncertainties,
- No listing track record ie. no idea how shareholder unfriendly

For a short term bet, I'd prefer SB REIT now but this will likely change after 24-Sep if Sabana share prices do drop due to profit taking by $1 placees...

For longer term, may be a better idea to look at those with stronger sponsors with lower yields, in order to sleep better. But, have to study their track records first...

(17-09-2013, 06:10 PM)felixleong Wrote: at the current prices of sabana 1.11 soil build reit 0.72

which do u guys think is a better pick for someone wanting a allocate a bit into industrial reits?

Main gripe for me for SB reit is that there is little room for growth unless they acquire more, which may lead to more right issues, private placement. It's something I'd personally avoid.

Update:

Today looks like Sabana dropped further. XD tomorrow, drop again. Then 24th Sept. comes, drop further still? Maybe drop to $1.05 near IPO price? Worth a buy?

(17-09-2013, 05:32 PM)cfa Wrote: Not easy for ind building landlords to get tenants, especially big one. This is not a fantastic building at all.
All B1 ind buildings built less than 20 years have almost same specifications.

Er... I look through a lot of B1 buildings in D16 area, chai seng, bedok, Changi, I saw quite a bit of variations in terms of ceilings height, ramps, floor load etc. The spec does vary, just wonder if those variation means anything.

Will those who bought the private placement sell out Sabana REIT? Unlikely, these are more likely to be long term investors. If these investors are not confident of SABANA or they can get a yield above 8% with less risk than Sabana REIT, they would not have bought this private placement at $1.

My grudge is the management placed the shares out too low, below NAV. The financial adviser who advises Sabana REIT to raise these funds has short changed the existing shareholders. I would love to buy it at $1 and lower. At $1, I project the dividend yield at 8% to 8.8% which is more attractive than the other REITs.

Is about 8.3% at today price. As one of the higher yield reits, the management is a little easy on fund raising. I can feel a sense of complacency there. Need to start watch them carefully in future. Avoiding hassle and doing short-cut is typically a no-no unless they can show it makes not significant difference which in this case seems not. They seem to forget who their bosses are or are they ?

(19-09-2013, 12:49 AM)corydorus Wrote: Is about 8.3% at today price. As one of the higher yield reits, the management is a little easy on fund raising. I can feel a sense of complacency there. Need to start watch them carefully in future. Avoiding hassle and doing short-cut is typically a no-no unless they can show it makes not significant difference which in this case seems not. They seem to forget who their bosses are or are they ?

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Fully agree... IMO, the trust (pun intended) they'd built up since listing has been shattered... with this Value Destructive (to existing shareholders) placement...

Can never win huh?

Rights issue, complain net cash outflow. Place out shares, complain kenna diluted and issued too cheaply.

I tend to agree with Nick. True test of the corporate action is whether unit holders are paid more or less after it is completed....