Sabana Shari'ah REIT

[brattzz]

let's focus on the companies and not on who's whos..
rest and relax lah!

[Nick]

It is fine (and expected) to compare the two REITs since they are from the same sector. Or else, it will be impossible to value Sabana correctly. Comparing it with its peers, it is trading in line with the sector's yield of 8-9%.

Personally, I would avoid personal attacks. Stick to analyzing each other comments and not each other characters

[Stocker]

No need to be suspicious over clones, if to spend time suspecting this one clone or that one clone, will only end up clone to nowhere.
Let's focus on the fundamentals of the companies that we discuss.
Cheers

[momoeagle]

That is clearly not a normal reaction expected of someone who wasn't guilty. I was only waiting for you to assure us you aren't, but instead, an emotional response was given. In addition, the same words and context were used. In case you didn't realise, all the clones used a similar sentence and you have used it again. Clearly exposed

It's perfectly fine for you to use clones. We just need to know who are the clones.

It's perfectly fine to compare Sabana with its industrial REIT peers too.

[momoeagle]

Substantial shareholder cuts Sabana Reit stake

Moore Macro Fund might have sold the shares at a loss

By REPORTS BY KAREN NG

THE first Syariah-compliant Reit here, Sabana real estate investment trust (Reit), yesterday saw a substantial shareholder reduce its stake.

In regulatory filings with the Singapore Exchange, Moore Macro Fund said that it had sold nine million shares of its holdings on the open market, reducing its stake from 6.32 per cent to 4.89 per cent. After the sale, it had a direct interest of 21.6 million shares or 3.41 per cent.

Moore Macro's deemed interest of 9.38 million shares, representing a 1.48 per cent stake, remained unchanged though.

In a similar filing, Moore Capital Management, which acts as a fund manager to Moore Macro, said that its deemed interest in Sabana Reit has been reduced from 7.8 per cent to 6.38 per cent following Moore Macro's share disposal.

Moore Capital also manages the funds of GCMoore and GC Emerging Markets Equity Fund.

When contacted by BT, the manager of Sabana's Reit, Sabana Real Estate Investment Management, said: 'Both Moore Capital and Moore Macro Fund had taken up placement units during the initial public offer (IPO), hence they had paid the IPO offer price of $1.05.'

Shares of Sabana Reit have been trading below their offer price and at a range of 96 to 98 cents on the local bourse, which indicated that the substantial shareholder might have made a loss since it sold its shares in the open market.

A spokesman for the manager of Sabana Reit said that there was no lock-in period for its holdings, and that this was 'in line with the practice of recent listings such as Global Logistic Properties and Mapletree Industrial Trust'.

According to the spokesman, cornerstone investors in Sabana Reit are Al Salam Bank-Bahrain BSC, Capital Investment & Brokerage/ Jordan, (a wholly owned unit of Capital Bank, FIL Investment Management (Hong Kong) Limited (a member of Fidelity Investment Managers group of companies), and Meren Pte Ltd (a wholly owned subsidiary of Metro Holdings).




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Getting interesting.

[Nick]

There are good manager, average managers and poor managers in our S-REITs and biz trust. Time is needed to see what sort of Management Sabana REIT has and hence what type of yield it should command. Locally, the only industrial REIT with a proven and good Manager would be Ascendas REIT and that's why it trades at a premium over its rivals. Personally, I rather just invest in a REIT with excellent Manager...I came to realize that Management quality (as opposed to asset quality) usually determines the REIT's fate.

[Blackjack]

Clearly, this is one fund without a longer term mandate which is probably leveraging on excessive sentiments to make a quick buck. That said, the act of paring down itself is not a good justification on the fundamentals of Sabana.

There are good manager, average managers and poor managers in our S-REITs and biz trust. Time is needed to see what sort of Management Sabana REIT has and hence what type of yield it should command. Locally, the only industrial REIT with a proven and good Manager would be Ascendas REIT and that's why it trades at a premium over its rivals. Personally, I rather just invest in a REIT with excellent Manager...I came to realize that Management quality (as opposed to asset quality) usually determines the REIT's fate.

Can't agree more dude. Though I would want to add Mapletree to the list as well.

[Nick]

Very true...I forgot about MLT which has a pretty decent record.

I think the best strategy is to purchased the best managed trust at the right price.

I have a list of trusts which I think is well-managed -

Industrial - Ascendas REIT, Maptree Log REIT
Office - Suntec REIT
Mall - CCT, CMT, FCT
Hospitality - CDLHT
Infrastructure - None
Shipping - PST
Property Developer - Ai-Trust
Healthcare - First REIT, Plife REIT

Please add/substract from the list.

[Blackjack]

Think we all have our own lists... if we just add on we may see the entire list in time to come lol. Similarly no good to subtract lah, in case offend anyone or opinions get cyclic. So what to do? Do the discreet way by listing individually

The term 'well-managed' may be subjective as well, and a good choice for investment should include not just good management, but quality assets, value and more. That said, my preference is probably as below for now: (I am not vested in most btw)

Industrial - Ascendas, MapletreeLog, Mapletree Ind
Office - Suntec REIT, CCT, K reit
Mall - CMT, Starhill, Fraser CT
Hospitality - CDLHT, Ascott reit
Infrastructure - None
Shipping - None
Property Developer - None
Healthcare - First reit

[d.o.g.]

I have a list of trusts which I think is well-managed -
...
Please add/substract from the list.

Speaking for myself, IMHO any trust that did a rights issue during the crisis automatically fails the "well-managed" test. The only ones that did not automatically fail in this regard would be, in alphabetical order:

Ascendas
Ascendas India
Ascott
CRCT
CDL HT
First
Frasers Centrepoint
LMIR
Plife
PST
Suntec

Of course, the list has to be further modified:

Suntec:

It is buying MBFC at a 4% yield. Fail.

CRCT:

Flattish sales during the crisis, but China's retail sales were booming, which suggests the malls are of poor quality. Fail.

Etc.

The new listings like Cache, MIT and Sabana are untested. However Cache is managed by ARA which can be evaluated from its behaviour with Fortune and Suntec, while MIT is managed by Mapletree which also manages MLT. Only Sabana's manager is truly new.

As usual, YMMV.