tag:blogger.com,1999:blog-7944902213075756335.post3060363774765062250..comments2024-03-28T10:39:01.047+08:00Comments on A Singaporean Stocks Investor (ASSI): Sabana REIT: 3Q FY2011.AK71http://www.blogger.com/profile/16832145412062954289noreply@blogger.comBlogger37125tag:blogger.com,1999:blog-7944902213075756335.post-51825594703053564532012-01-09T21:57:03.539+08:002012-01-09T21:57:03.539+08:00Hi SnOOpy168,
I am estimating a DPU of 2.2c. I li...Hi SnOOpy168,<br /><br />I am estimating a DPU of 2.2c. I like to think that I am being conservative. ;)AK71https://www.blogger.com/profile/16832145412062954289noreply@blogger.comtag:blogger.com,1999:blog-7944902213075756335.post-18125789864540632322012-01-07T09:44:24.215+08:002012-01-07T09:44:24.215+08:00http://sabana.listedcompany.com/newsroom/20120106_...http://sabana.listedcompany.com/newsroom/20120106_170750_M1GU_51B50DCFBA4FEDA94825797D002AE090.1.pdf<br /><br />Q4-2011 results out on 20Feb. A nice fat CNY ang pow for us, I hoped. ^-^SnOOpy168https://www.blogger.com/profile/16073641443037165395noreply@blogger.comtag:blogger.com,1999:blog-7944902213075756335.post-20513604799166433292011-12-28T11:35:52.612+08:002011-12-28T11:35:52.612+08:00Hi CS,
There is some support for the REIT's u...Hi CS,<br /><br />There is some support for the REIT's unit price at 86c. In TA, the longer a counter's price languishes at a certain level, the stronger it becomes as a support or resistance, depending on other indicators. So, in this case, the support could be getting stronger in time.<br /><br />Having a large chunck of its leases ending at the same time is definitely a concern. It AK71https://www.blogger.com/profile/16832145412062954289noreply@blogger.comtag:blogger.com,1999:blog-7944902213075756335.post-81012494263455269832011-12-20T21:39:24.029+08:002011-12-20T21:39:24.029+08:00Hi AK,
I am also a fan of reits though my portfoli...Hi AK,<br />I am also a fan of reits though my portfolio is nothing to compared with yours. I started to buy Sabana at S$0.96 after reading your blog. And am tempted to add some more units at the current trading price of around S$0.86. Do you think this is a strong support point?<br />According to the reit's 3Q presentation, about 60% of leases will expire in 2013. Is this something to be of Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-7944902213075756335.post-5892277082466980882011-10-23T22:09:18.315+08:002011-10-23T22:09:18.315+08:00Hi Nick,
I don't see why you have to say &quo...Hi Nick,<br /><br />I don't see why you have to say "especially industrial reits with 40 year lease". All REITs with leasehold properties have the same "self-liquidating" characteristic. Difference is in the lengths of the remaining leases.<br /><br />To ask a question that would put things in the correct perspective which will not villify industrial REITs: Are other typesAK71https://www.blogger.com/profile/16832145412062954289noreply@blogger.comtag:blogger.com,1999:blog-7944902213075756335.post-54188279390281338902011-10-22T14:17:06.825+08:002011-10-22T14:17:06.825+08:00Unless I am mistaken, lease renewal in HK is extre...Unless I am mistaken, lease renewal in HK is extremely cheap unlike Singapore. Best to check with Fortune REIT IR and see what they say about lease renewal. Think about Indonesia - lease is only 20-30 years but renewal only cost a few thousand dollars. The ones in Singapore will be substantial IMO. In either case, REITs with leasehold assets (especially industrial reits with 40 year lease) shouldAnonymousnoreply@blogger.comtag:blogger.com,1999:blog-7944902213075756335.post-49435738914884989322011-10-22T09:41:57.088+08:002011-10-22T09:41:57.088+08:00Hi financialray,
Till now, I still find it hard t...Hi financialray,<br /><br />Till now, I still find it hard to believe that a new residential property in Hong Kong comes with a lease of only 50 years although I have known this for many years. It is simply mind boggling and some Singaporeans complain about getting a 99 years lease on their HDB flats.<br /><br />As for the young being unable to retire, I believe that is how capitalism works. It AK71https://www.blogger.com/profile/16832145412062954289noreply@blogger.comtag:blogger.com,1999:blog-7944902213075756335.post-9635733148513537222011-10-22T09:26:31.151+08:002011-10-22T09:26:31.151+08:00Hi FF,
It's been a while. Good to hear from y...Hi FF,<br /><br />It's been a while. Good to hear from you. A hearty welcome to the AIMS AMP Capital Industrial REIT family. ;)AK71https://www.blogger.com/profile/16832145412062954289noreply@blogger.comtag:blogger.com,1999:blog-7944902213075756335.post-22962943255769003292011-10-22T09:24:01.185+08:002011-10-22T09:24:01.185+08:00Hi Ah John,
In a recessionary environment, deflat...Hi Ah John,<br /><br />In a recessionary environment, deflation will set in and almost nothing will be spared. I do not believe that industrial space rentals will be immune to it.<br /><br />However, on a relative basis, industrial space rentals are stronger than office space rentals. <br /><br />Tenants of industrial spaces are usually less footloose. High tech industrial space is quite AK71https://www.blogger.com/profile/16832145412062954289noreply@blogger.comtag:blogger.com,1999:blog-7944902213075756335.post-7839000008526478392011-10-22T09:15:14.523+08:002011-10-22T09:15:14.523+08:00Yes AK,
60 years lease is quite the norm in some...Yes AK, <br /><br />60 years lease is quite the norm in some countries like Hong Kong.<br />When I buy a 60 year lease shop however, I usu put down 30% while taking a 70% loan to be paid perhaps over 20-30 years.<br />The value of a shop after 20-30 years will be drastically lowered if the lease is only 30-40 years left. So my advice is to go for shops that are 70-80 years lease left or better financialraynoreply@blogger.comtag:blogger.com,1999:blog-7944902213075756335.post-72983221998934876302011-10-22T09:07:02.863+08:002011-10-22T09:07:02.863+08:00Hi financialray,
Indeed, what is rare is most pre...Hi financialray,<br /><br />Indeed, what is rare is most precious or that's how the Chinese saying goes. ;)<br /><br />Well, 60 years lease is plenty if we are able to get a net yield of 5% on a piece of investment. If we should be able to leverage with low interest rate, the yield could be even higher. :)AK71https://www.blogger.com/profile/16832145412062954289noreply@blogger.comtag:blogger.com,1999:blog-7944902213075756335.post-62111610344985911172011-10-22T09:01:48.385+08:002011-10-22T09:01:48.385+08:00Hi SnOOpy168,
Starting later might not be a bad t...Hi SnOOpy168,<br /><br />Starting later might not be a bad thing. I started earlier and fell into quite a few holes. ;p<br /><br />It is more important to start on the right foot and this is what I hope my blog can contribute to. :)AK71https://www.blogger.com/profile/16832145412062954289noreply@blogger.comtag:blogger.com,1999:blog-7944902213075756335.post-47048654216733541932011-10-21T22:46:02.723+08:002011-10-21T22:46:02.723+08:00Hi AK71,
I'm invested in AIMS AMP REIT. Deci...Hi AK71,<br /><br />I'm invested in AIMS AMP REIT. Decided to take a small stake in it =)FFhttp://sgfinancialfreedom.blogspot.comnoreply@blogger.comtag:blogger.com,1999:blog-7944902213075756335.post-45221785208822829332011-10-21T22:26:06.345+08:002011-10-21T22:26:06.345+08:00Hi AK, any comment for this research:
"The a...Hi AK, any comment for this research: <br />"The average rent for both hi-tech industrial properties and upper-storey private industrial space remained unchanged at $3.45 per sq ft. and $1.75 per sq ft per month respectively. It is believed that rents may go down, given the decrease in manufacturing output of 4.7% month-on-month and 10.5% year-on-year and upcoming completion of 19.8 million Ah Johnhttps://www.blogger.com/profile/08143011578144039532noreply@blogger.comtag:blogger.com,1999:blog-7944902213075756335.post-14958120127821675172011-10-21T18:59:48.230+08:002011-10-21T18:59:48.230+08:00For industrial properties, it is better to invest ...For industrial properties, it is better to invest via reits for all the reasons mentioned. Most important reason I personally believe is that I do not know what to do with an industrial property if I cannot find a tenant. Unlike a residential property, I cannot live in an industrial property. <br /><br />However, do keep your radars on commercial shop houses, although prices may be near peak financialraynoreply@blogger.comtag:blogger.com,1999:blog-7944902213075756335.post-32781389918936039592011-10-21T16:54:18.603+08:002011-10-21T16:54:18.603+08:00yup. In the case of a small time investor like me,...yup. In the case of a small time investor like me, REIT is the only choice which still allows sufficient liquidity on ownership.<br /><br />Wished I had started much much earlier.... wish...<br /><br />Have a good weekend everyone.SnOOpy168https://www.blogger.com/profile/16073641443037165395noreply@blogger.comtag:blogger.com,1999:blog-7944902213075756335.post-56727934512305461482011-10-21T16:17:19.086+08:002011-10-21T16:17:19.086+08:00Hi SnOOpy168,
That too. :)
Having 10 properties ...Hi SnOOpy168,<br /><br />That too. :)<br /><br />Having 10 properties located in the same region is definitely going to benefit from economies of scale compared to having only 2 properties, for example. It is about collective use of available resources and collective bargaining power. :)AK71https://www.blogger.com/profile/16832145412062954289noreply@blogger.comtag:blogger.com,1999:blog-7944902213075756335.post-759373892542284242011-10-21T15:23:52.165+08:002011-10-21T15:23:52.165+08:00I think it boils down to our size of capital and e...I think it boils down to our size of capital and economies of scales for the supporting services.<br /><br />if I have 2 properties that I need an agent to collect rent and manage for me. I am sure that it will not be service fee for 1 property x 2. Surely a discount. Upto the point, where it will cheaper hire someone to manage for me full time. <br /><br />Until I touch a few Big Sweep 1st prizeSnOOpy168https://www.blogger.com/profile/16073641443037165395noreply@blogger.comtag:blogger.com,1999:blog-7944902213075756335.post-47740591862527569032011-10-21T14:28:09.771+08:002011-10-21T14:28:09.771+08:00Hi Towel,
You are welcome. I am glad to share my ...Hi Towel,<br /><br />You are welcome. I am glad to share my views. :)<br /><br />Of course, if you were to put the same question to someone who is invested directly in industrial properties in Singapore, you might get a different answer. ;)<br /><br />Know our motivations and invest accordingly. If we are happy with the returns we are getting, we have probably done it right. It is all quite AK71https://www.blogger.com/profile/16832145412062954289noreply@blogger.comtag:blogger.com,1999:blog-7944902213075756335.post-9397087419891413482011-10-21T14:03:05.859+08:002011-10-21T14:03:05.859+08:00Hi AK71
Thanks for your insight.
I have been tem...Hi AK71<br /><br />Thanks for your insight.<br /><br />I have been tempted to put in some money (plus bank borrowing) to buy industrial property as a few of my friends have done so. <br /><br />Fortunately, I held back more because I am too lazy to manage a property. And your input has given me added assurance that I made the right decision, albeit based on the wrong reasons. haha.<br /><br />Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-7944902213075756335.post-24118774554542059472011-10-21T10:29:18.432+08:002011-10-21T10:29:18.432+08:00Hi Jim,
Sabana REIT received a corporate credit r...Hi Jim,<br /><br />Sabana REIT received a corporate credit rating from Standard & Poor's not too long ago. This allows them to gear up beyond 40%. I believe the maximum is 60%.<br /><br />In the event that a recession should hit and deflation follows, Sabana REIT's properties would have to decline by some 15% in value for gearing to approximate 41%, all else remaining equal.<br /><br AK71https://www.blogger.com/profile/16832145412062954289noreply@blogger.comtag:blogger.com,1999:blog-7944902213075756335.post-553210482122577282011-10-21T10:19:48.979+08:002011-10-21T10:19:48.979+08:00Hi Towel,
It is tempting to invest in an industri...Hi Towel,<br /><br />It is tempting to invest in an industrial property in Singapore because the NPI can be quite high, say, around 15% on average. <br /><br />However, we will have to take on the responsibility of managing the property. The risk is also higher if all our investable funds are utilised for just one property.<br /><br />Investing in REITs with good numbers reduces concentration AK71https://www.blogger.com/profile/16832145412062954289noreply@blogger.comtag:blogger.com,1999:blog-7944902213075756335.post-57385178034366897492011-10-20T22:13:37.211+08:002011-10-20T22:13:37.211+08:00Hi Ak,
What if the asset value of sabana reit dro...Hi Ak,<br /><br />What if the asset value of sabana reit drops and results in gearing goes above 35%?<br /><br />Must top up money? Interest rate increase for their loans?<br /><br />Thanks.<br /><br />JimAnonymousnoreply@blogger.comtag:blogger.com,1999:blog-7944902213075756335.post-13218176620165552642011-10-20T21:39:38.616+08:002011-10-20T21:39:38.616+08:00Hi AK71
Just wondering, since REITs are in proper...Hi AK71<br /><br />Just wondering, since REITs are in property rental business, if i have a sum of money, should i buy REITs or buy a property to rent out ? In other words, what are the pros and cons of REITs vs direct property purchase, and on balance, which is better in your opinion?<br /><br />Regards<br />TowelAnonymousnoreply@blogger.comtag:blogger.com,1999:blog-7944902213075756335.post-21274063308873840662011-10-20T11:32:18.810+08:002011-10-20T11:32:18.810+08:00Hi qinzheng,
Sabana REIT is a younger REIT compar...Hi qinzheng,<br /><br />Sabana REIT is a younger REIT compared to Cache Logistics. It does not have the latter's track record. Other than that, I believe both have equally good potential.<br /><br />In terms of value, Sabana REIT's unit price declined to a point where distribution yield exceeded 10% not too long ago. It has since recovered somewhat.<br /><br />Although it will have total AK71https://www.blogger.com/profile/16832145412062954289noreply@blogger.com