Sabana Shari'ah REIT

I don't think forummers here are well-versed with what is happening in the Malaysian investment world haha ! Maybe check out the Malaysian investment forum for clarifications ?

(26-05-2011, 12:15 PM)Musicwhiz Wrote:

(26-05-2011, 12:08 PM)Pelham Wrote: Hi guys - I'm new to this forum and like the dialogues that I'm seeing from you. Good stuff!

In relation to Shariah REITs, I've heard good things about the new Axis REIT to be launched soon. Have you guys heard anything as well?

As Moderator, let me extend a warm welcome to you! You will find that Value Buddies contains very good and detailed discussions on SGX-Listed Companies, as well as Economic News, Property News and other pertinent discussions on Personal Finance and Wealth.

As for Axis REIT, could you provide more info please? (E.g. which country, asset size, asset types, projected yield etc?)

Thanks!

It's Axis Global REIT and supposed to be listed in Malaysia. But, that had been delayed,

http://www.btimes.com.my/Current_News/BT...t/Article/

Not sure if they are reviving it again (just like Perennial).

SABANA SHARI’AH COMPLIANT INDUSTRIAL REAL ESTATE INVESTMENT TRUST
(a real estate investment trust constituted on 29 October 2010 under the laws of the Republic of Singapore)

SABANA REIT INCLUDED IN MSCI GLOBAL SMALL-CAP INDICES

Singapore, 31 May 2011 – Sabana Real Estate Investment Management Pte. Ltd., the

Manager of Sabana Shari’ah Compliant Industrial Real Estate Investment Trust (“Sabana
REIT”), announces that Sabana REIT has been included in the Morgan Stanley Capital
International “(MSCI”) Global Small-Cap Indices, effective as of the close of market today.

Commenting on Sabana REIT’s inclusion in the MSCI Global Small-Cap Indices, Mr Kevin Xayaraj, Chief Executive Officer and Executive Director of the Manager, said, “The MSCI indices are widely tracked global equity benchmarks covering companies with good operational results and potential. The inclusion puts Sabana REIT onto the ‘radar screens’ of a much wider group of institutional investors and funds seeking value and performance from markets round the world.

We are greatly encouraged to have achieved this major milestone and feel very honored for Sabana REIT to be selected as one of the constituent stocks, considering that it has been listed for only six months.”

The MSCI’s market capitalisation-weighted indices are among the most widely used global equity benchmarks and serve as the basis for over 400 exchanged traded funds throughout the world.
MSCI conducts its index reviews four times each year, and the latest changes were implemented at the close of the market on 31 May 2011.

Does anyone know the criterion for being included on the MSCI? Thanks for this valueinvestor!

(14-05-2011, 03:41 AM)Drizzt Wrote: I have an alternative view. What if this REIT has zero debts and yields 7.2% instead of 9%. Would u guys like this investment if it's new acquisition is finance by rights issue?

I guess you are comparing K-Green vs Sabana?

Good point Drizzt!

For that extra 1.8% dividend yield, is the risk/reward worth it? Interesting..... Defensive dividend play or aggressive leveraged growth play cloaked as dividend play

What if...

1) Bank interest rates move up........

2) Share placement or rights issue - both dilutive to existing unit holders if you don't join or is not invited to the party.

(01-06-2011, 03:17 PM)Jared Seah Wrote: Good point Drizzt!

For that extra 1.8% dividend yield, is the risk/reward worth it? Interesting..... Defensive dividend play or aggressive leveraged growth play cloaked as dividend play

What if...

1) Bank interest rates move up........

2) Share placement or rights issue - both dilutive to existing unit holders if you don't join or is not invited to the party.

It would be interesting to calculate which REIT has provided the highest average annual returns to its IPO unit-holders and whether are there any with negative returns. I compiled similar stats for business trust and all but two under-performed fixed deposits !

(01-06-2011, 10:33 AM)momoeagle Wrote:

(14-05-2011, 03:41 AM)Drizzt Wrote: I have an alternative view. What if this REIT has zero debts and yields 7.2% instead of 9%. Would u guys like this investment if it's new acquisition is finance by rights issue?

I guess you are comparing K-Green vs Sabana?

(01-06-2011, 03:17 PM)Jared Seah Wrote: Good point Drizzt!

For that extra 1.8% dividend yield, is the risk/reward worth it? Interesting..... Defensive dividend play or aggressive leveraged growth play cloaked as dividend play

What if...

1) Bank interest rates move up........

2) Share placement or rights issue - both dilutive to existing unit holders if you don't join or is not invited to the party.

hi momo and jared, not actually refering to k-green but it seem people think debts are taboo so why not create a trust fully funded by rights issue! no one will complain then. when i/r move up they wont have refinance risk

a trust fully funded by rights issue, is bad management of money...a better run company will use low cost debt to profit more.

Drizzt,

Actually all REITs function in that way in the long run. Name me a REIT which actually has a plan to repay their debt without turning to rights issue ? There is no such REIT - they will rollover the loans through 'refinancing' while hoping asset valuation rise up so they can borrow more ! If asset valuation dips or stagnates, then they will turn to rights to repay the loans. Hence, in reality, REITs use debt to fund their purchase and then turn to equity financing to repay the loan or lower the gearing in the future. Debt is just the bridge which unit-holders will cross.