Sabana REIT: 3Q 2012 DPU 2.34c.

Sabana REIT reported a robust set of numbers, declaring a DPU of 2.34c. The counter will go XD on 24 Oct and income distribution is payable on 28 Nov.




Total assets under management: $1.1 bn

Occupancy rate: 99.9%

Average all-in financing cost: 4.3%

Weighted average tenor of debt: 3.5 years.

Interest cover ratio: 5.5x

NAV/unit: $1.03

Sabana REIT's higher income from a slew of acquisitions

Sabana REIT: Convertible Sukuk.

Some time back, I wrote about how perpetual bonds could be a good thing for REITs if they could use the funds raised to acquire yield accretive properties. Imagine borrowing at a lower interest rate to invest in a property with a NPI yield higher than the cost of debt. This is good news for existing unitholders.





Sabana REIT has announced a Convertible Sukuk which will raise S$80m. What is

Sabana REIT: 2Q 2012 DPU 2.27c.

When people asked me whether they should invest in AIMS AMP Capital Industrial REIT or Sabana REIT recently, I asked them what are they after? If they are after a higher yield in the immediate future, Sabana REIT is the obvious choice.





Sabana REIT has declared a DPU of 2.27c, just 0.01c higher than in the last quarter. Annualised, this gives us 9.08c. Buying units of the REIT at $1.00 a

Market gyrations, my portfolio and a sabbatical.

My investments in S-REITs are holding up nicely which gives credence to my strategy to overweight S-REITs in my portfolio. Their relative price stability and high distribution yields provide some solace in a volatile market.

A brief look at some of my larger investments in S-REITs:

1. AIMS AMP Capital Industrial REIT closed at $1.20 per unit. My cost per unit ranges from $0.775 to $1.10.

2.

AIMS AMP Capital Industrial REIT and Sabana REIT: Performance fees.

This issue of The EDGE has a very interesting article by Goola Warden on S-REITs. In a nutshell, it looks at potential conflicts of interest between their external managers and unitholders. To this end, it looks at the layers of fees charged by the managers.

As investors, we want to make sure that the REIT managers are fairly rewarded since no one would work for free. However, we have to

Charts: China Minzhong, Wilmar, Yongnam, Sabana REIT, AIMS AMP Capital Industrial REIT.

I have a friend who told me that he wants to buy more of China Minzhong at 50c. Why 50c? He can't quite say. Anyway, at 50c, I would have lost almost half of my initial investment in the company...



What does the chart say? Momentum is definitely negative and the MACD is still in decline. What is encouraging is the reducing volume over the last three sessions although it remains elevated. Today

Sabana REIT: 1Q 2012 DPU 2.26c.

The REIT's yield accretive purchases of five properties last year has helped to push DPU to 2.26c for 1Q 2012. Annualised, this would give us a DPU of 9.04c. Based on the REIT's last closing price of 97.5 per unit, we are still looking at a distribution yield of more than 9%. 9.27% to be more exact.

With a NAV/unit of $1.04, the REIT is still trading at a discount to NAV even though its unit

AIMS AMP Capital Industrial REIT: Credit rating.

Life has been somewhat stressful for me lately. Lots of things happening. That explains the paucity of blog posts.

I am trying to get up to speed with things and also trying to catch up on my reading of business periodicals which I have neglected lately.


In today's The Business Times, I read that AIMS AMP Capital Industrial REIT has received an investment grade credit rating of BBB- from

Sabana REIT: Resistance to watch.

One month ago, I mentioned that Sabana REIT's unit price saw higher lows formed since August 2011 and that it was repeatedly testing gap resistance at 91c and 91.5c. I wondered then whether its unit price could break resistance to go higher. It did, going on to break resistance at 93.5c, and, in the last few sessions, tested resistance at 95c. It ended the day at 96c a unit with a massive buy up

OCBC Research: Industrial REITs.

I came across an interesting piece of research by OCBC on industrial REITs in Singapore and would like to share the salient points here (some of which I have mentioned before in my blog):

Industrial REITs reported healthy 4Q11 results.

Industrial REITs appeared to outperform market expectations.

Expecting stable performance.

Operating metrics still healthy.

Earnings likely to stay

STI breaks 3,000 points and stays above 3,000 points!

Although I am keeping to my pledge to spend more time with my family this year, I am also blogging less frequently because work got a bit more demanding.

I might have some spare time occassionally but instead of blogging, I just feel like spending time with a book or watching some movies on my iPad.

I know that some readers are lamenting the recent paucity of blog posts in ASSI and I

Sabana REIT: Target BUY prices.

A reader mentioned that Sabana REIT's unit price has weakened to 88c after going XD. A further weakening in price could be an opportunity to accumulate. I have the same thought. After all, I divested a small portion of my investment in the REIT at 90c and 91c as its unit price rose in the last couple of weeks.

Question: What would be my target buy prices? Prices? Yes, I see stronger supports

Sabana REIT: Partial divestment at 91c.

In an earlier blog post, I mentioned that immediate resistance for Sabana REIT is to be found at 91c. If this were to be taken out, we could see gap filling at 91.5c.

My sell order at 91c was filled today. Technically, if unit price should weaken when the REIT goes XD, we could see a decline to retest support which seems to be on a rising trendline. This would be in the region of 87c. That is

Sabana REIT: 4Q 2011 results.

A DPU of 2.17c has been announced. This is a little lesser than my estimate of 2.2c. This is probably due to the fact that no rentals were collected for the property of 1 Tuas Avenue 4 in the months of November and December 2011. The manager is in advanced stage of negotiation with a party to rent the said property for a 10 year period. This, when completed, together with recent acquisitions

Sabana REIT and AIMS AMP Capital Industrial REIT: Releasing quarterly results on 20 January 2012.

Both Sabana REIT and AIMS AMP Capital Industrial REIT will be releasing quarterly financial results on 20 January 2012.

Sabana REIT: see announcement here.

AIMS AMP Capital Industrial REIT: see announcement here.



Sabana REIT has completed a few acquisitions in the last quarter. However, I think their contributions to distributable income will be more substantial in the current quarter. This

Office S-REITs VS. Industrial S-REITs (3).

Earlier this year, I shared some salient points in a research by DTZ.

Update (23 November 2011):

Singapore's office property market has lost its appeal as an investment, according to real estate firm DTZ.

DTZ said demand for office space has declined, and the sector is now considered "cold".

It defines "cold" as property that is more than 5 per cent overpriced, with potential yield below

Bought Hyflux and AIMS AMP Capital Industrial REIT.

My overnight buy order for Hyflux at $1.20 was filled. Looking at the daily chart, it is immediately clear why I put in a buy order at that level. It is support. Even with a confirmation of a reversal signal, we want to buy as close to support as possible. Of course, luck plays a part because in very bullish circumstances, price could have gapped up and gone higher.



A white hammer was formed

Sabana REIT: 3Q FY2011.

Sabana REIT together with AIMS AMP Capital Industrial REIT are my top investments at the moment. Together, they account for a lion's share of my passive income generated from investments in the Singapore stock market.


Sabana REIT has declared a DPU of 2.14c for 3Q FY2011. Based on today's closing price of 91c per unit, this represents a distribution yield of 9.4% based on an annualised DPU of

Sabana REIT: Acquiring 21 Joo Koon Crescent.

Sabana REIT is recently on an acquisition spree. Today, it announced the proposed acquisition of 21 Joo Koon Crescent. With this latest acquisition which will be funded fully by debt, its gearing level will bump up to 35%.

Property: 21 Joo Koon Crescent.
Consideration: S$20.274m.
Remaining lease: About 43 years.

If all its recent proposed debt funded acquisitions should be successfully carried

First REIT, AIMS AMP Capital Industrial REIT, ARA and Sabana REIT.

It is kind of late and I still have a long drive ahead of me. So, this will be a quick update with very simple charts.

My overnight buy order for First REIT at 76c was filled. My other overnight buy order at 74.5c was not filled although the unit price did go that low today.


Overnight buy order for AIMS AMP Capital Industrial REIT at 19.6c was filled. I thought that many people would want to