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Sabana Shari'ah REIT
12-08-2017, 01:02 PM,
Post: #891
RE: Sabana Shari'ah REIT
While one factor is indeed the REIT manager inability to prop up the rent, there are still other reasons. For one the industrial property sector is currently in the doldrums and if i recalled, Sabana IPOed itself in the upturn of the property cycle which meant lofty valuations for its property.

This can explain why NAV has fallen so much.

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12-08-2017, 02:07 PM,
Post: #892
RE: Sabana Shari'ah REIT
(12-08-2017, 01:02 PM)CY09 Wrote: While one factor is indeed the REIT manager inability to prop up the rent, there are still other reasons. For one the industrial property sector is currently in the doldrums and if i recalled, Sabana IPOed itself in the upturn of the property cycle which meant lofty valuations for its property.

This can explain why NAV has fallen so much.

Could i also add that the NAV was also propped up by "rental support" from the properties it bought.

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12-08-2017, 05:47 PM,
Post: #893
RE: Sabana Shari'ah REIT
(12-08-2017, 02:07 PM)weijian Wrote:
(12-08-2017, 01:02 PM)CY09 Wrote: While one factor is indeed the REIT manager inability to prop up the rent, there are still other reasons. For one the industrial property sector is currently in the doldrums and if i recalled, Sabana IPOed itself in the upturn of the property cycle which meant lofty valuations for its property.

This can explain why NAV has fallen so much.

Could i also add that the NAV was also propped up by "rental support" from the properties it bought.

yes of cos! :Big Grin

can add in "STRONG" rental support @ PEAK OF Property cycle/Valuation! 

with "STRONG" earnings, the value is sold/IPO to investors as "HIGH" too!

Big Grin Big Grin
1) Try NOT to LOSE money!
2) Do NOT SELL in BEAR, BUY-BUY-BUY! invest in managements/companies that does the same!
3) CASH in hand is KING in BEAR! 
4) In BULL, SELL-SELL-SELL! 

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13-08-2017, 10:30 AM,
Post: #894
RE: Sabana Shari'ah REIT
Low occupancy more likely because of shari'ah ruling on tenant type of business. If ESR buy and delist then properties is freed to any tenant and the rental potential is huge.

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13-08-2017, 11:11 AM,
Post: #895
RE: Sabana Shari'ah REIT
(13-08-2017, 10:30 AM)laksaman57 Wrote: Low occupancy more likely because of shari'ah ruling on tenant type of business. If ESR buy and delist then properties is freed to any tenant and the rental potential is huge.

I read "non Sharia-compliant companies such as casinos, and alcohol and tobacco companies. "

How would this be huge if only this ? 

Just my Diary
corylogics.blogspot.com/



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13-08-2017, 12:27 PM, (This post was last modified: 13-08-2017, 12:38 PM by CY09. Edit Reason: edits )
Post: #896
RE: Sabana Shari'ah REIT
Purely my own opinion, the vacancy rate at Sabana is about the same as the industrial property segment (11.3%). If ESR is buying based on its ability to improve the vacancy rate, it has to mean that ESR's management is confident on its own ability to attract more tenants (same skill level as Mapletree or Ascendas) or it is hoping for an uptick of the industrial segment to boost vacancy rate.

http://www.jtc.gov.sg/industrial-propert...-rate.aspx

Based on what JTC is painting, i doubt there will be an impending uptick for the industrial properties segment. Evidence by Table 2, a significant amount of industrial space area built during the recent boom has not been filled up; on the contrary, more spaces seem to be added to the vacancy pool. With Singapore not growing that rapidly, I wont be surprised to see higher vacancy rates in the near term. If i were ESR, I will wait for 1-2 more years, wait for Sabana to revalue its property lower then snap it out.

From the JTC table, it also reminds me of the days when Industrial developers (e.g Oxley) used to make sales pitches telling people to buy an industrial unit as they can obtain rental yields of 6-8%; and now when I go around Ubi, these units are completed and vacant

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13-08-2017, 01:16 PM, (This post was last modified: 13-08-2017, 01:17 PM by Ray168.)
Post: #897
RE: Sabana Shari'ah REIT
   

The overall occupancy rate on downtrend due to over supply. However, from DPU perspective, some of the good Reit has perform well despite facing this challenge.

Sabana DPU has been on downtrend for 5 years due to:

1. Financial engineering (Master lease not renew lease)
2. Lousy Reit Manager
3. Buy property at high price (not yield accredit)

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13-08-2017, 01:53 PM,
Post: #898
RE: Sabana Shari'ah REIT
(13-08-2017, 01:16 PM)Ray168 Wrote: The overall occupancy rate on downtrend due to over supply. However, from DPU perspective, some of the good Reit has perform well despite facing this challenge.

Sabana DPU has been on downtrend for 5 years due to:

1. Financial engineering (Master lease not renew lease)
2. Lousy Reit Manager
3. Buy property at high price (not yield accredit)

took a lot of guts, effort and time for minority activist to get acknowledgement from the management for that 3 reasons!!

kudos!! Big Grin
1) Try NOT to LOSE money!
2) Do NOT SELL in BEAR, BUY-BUY-BUY! invest in managements/companies that does the same!
3) CASH in hand is KING in BEAR! 
4) In BULL, SELL-SELL-SELL! 

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