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This blog is in reply to Jerry Low's comment:
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| Source: HERE. |
Saizen REIT was not a shitty counter. It was just misunderstood and it was thanks to the misunderstanding that I was able to accumulate a sizable position relatively cheaply so many years ago.
In fact, I thought Saizen REIT had a very competent manager who ate their own pudding.
Of course, the REIT was a fantastic investment, as it turned out, for me and many other investors. I shan't say more since regular readers should be quite familiar with the narrative.
As for Sabana REIT, I did blog about it quite regularly for a few years as it was a big part of my S-REITs portfolio for the same number of years.
Although I agree that the REIT has a mediocre manager who strikes me as mostly self serving, to be fair, it was a rewarding investment for me. Having said this, I am aware that that there are fellow Sabana REIT investors who are less fortunate.
As always, I am quite happy to help people to help themselves. If my blog has helped to educate retail investors to some degree, I am glad.
In the end, however, I must let readers make their own decisions and I won't push them in any direction. I am not allowed to and I don't want to.
Although I am sympathetic to those who have lost money investing in Sabana REIT, I believe that they must take responsibility for their own action or inaction as investors.
If they happen to form the majority of Sabana REIT's investors and if they choose to be apathetic for whatever reason, then, they have to accept whatever the consequences might be.
By replying to your comment in the form of a blog, I am helping to spread the word about the activism that is taking place now.
However, please understand that I do this because I believe that more people must be made aware of how investing in REITs for income is not as easy as they might think and they must know that REITs are not risk free investments.
I am not doing this to be a part of the activist movement against the manager of Sabana REIT.
With best wishes,
AK
If you are a Sabana REIT unitholder and if you are interested, here is the link to the FB page:
https://www.facebook.com/groups/1586399528054150/?qsefr=1
By the way, as requested by some readers, tomorrow, I will be sharing a check list for investing in REITs.
Investing in REITs for income is simple enough to understand but it might not be as easy to do it well.
Bloggy Award
9 comments:
Thanks. I understand your position. But I still hope you can provide a link on our FB to your writings when you touch on Sabana. Like I say, it is big hurdle for us to overcome the Singapore investor's apathy to bring them to the meeting....
P.S Saizen was shitty until you brought it to task....I remember you were the only one blogging about it non-stop...haha
Hi Jerry,
My first blog on Saizen REIT was in 2009, if I remember correctly. It was many years later that a few other bloggers got on the bandwagon. All investments are good at the right price but asset plays, in particular, require a lot of patience. :)
Hi AK,
Can I get peek into your mind? If you were voting at an EGM/AGM for a company and the votes ended up 49% for and 49% against, and you hold the remaining 2%, what would you do?
Hi D,
I said this in another activist group on FB (https://www.facebook.com/groups/1661599120805998/):
"Leopards cannot change their spots. I have very little hope that Sabana REIT's current manager will change theirs. If this is the last straw, we should have a new manager ready to take over and we must promise this new manager that we will remove the current manager. Otherwise, we are a paper tiger. Growl as much as we want but we have no bite and they know it. I know it."
What I do will depend on whether we have a new manager ready to take over. Liquidation is always an option, of course, and, for a while, I thought it was not a bad idea since the REIT is trading at a big discount to NAV.
However, after careful consideration, I believe that we might get very low offers if it should come to liquidation because without a manager, we will have to sell within a short period of time. Potential buyers, if any, will know that we would have no choice but to sell off the assets quickly.
There is also the question of whether valuations are realistic. If the valuations have been too optimistic, then, the REIT's current NAV is suspect.
Of course, it does not help that industrial properties in Singapore generally are experiencing oversupply and soft demand.
http://singaporeanstocksinvestor.blogspot.sg/2017/02/remove-sabana-reit-manager-fb-page.html?showComment=1486302838277#c726172905123055918
Hooray, AK, I am so looking forward to your REITS checklist! :)
Hi jojo,
You will find it here:
Financial freedom through Dividend Machines!
:)
Sabana Reit unitholders vote against manager removal, wind-up -_-"
http://i.imgur.com/an2nhzg.jpg
Jerry, your thoughts on the EGM?
Reader:
AK Sifu, is this good or bad? Everything back to square? or a wake up call to the under performing management? Looking forward to you talking to yourself.....
AK:
Alamak. I also dunno good or bad. I only know all investments are good at the right price. 😉
Reader:
Sifu, what is the right price then? Care to talk to yourself.....Thank you. Happy Labour Day though you already is a boss instead of a labour... ha ha
AK:
I shared my thoughts here before:
http://singaporeanstocksinvestor.blogspot.sg/2017/01/history-with-sabana-reit-and-current.html
What is right price? You decide. 😉
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