tag:blogger.com,1999:blog-7944902213075756335.post5507611079974387705..comments2024-03-29T10:22:24.187+08:00Comments on A Singaporean Stocks Investor (ASSI): Sabana REIT: 1Q 2014 DPU 1.88c.AK71http://www.blogger.com/profile/16832145412062954289noreply@blogger.comBlogger34125tag:blogger.com,1999:blog-7944902213075756335.post-71429485274188466922014-07-11T23:06:20.974+08:002014-07-11T23:06:20.974+08:00Rents for prime warehouse space in Singapore weake...Rents for prime warehouse space in Singapore weakened for the third straight quarter in the April-June period, according to the latest report by property services firm Colliers International on Friday (July 11).<br /><br />Savills says a small number of manufacturers have started moving their operations to the Iskandar region, in an effort to reduce costs.<br /><br />http://AK71https://www.blogger.com/profile/16832145412062954289noreply@blogger.comtag:blogger.com,1999:blog-7944902213075756335.post-27083027639361892652014-04-18T21:11:52.487+08:002014-04-18T21:11:52.487+08:00Hi Kim,
I wrote such a long reply that I think I ...Hi Kim,<br /><br />I wrote such a long reply that I think I should publish it as a regular blog post. Look out for it. :)AK71https://www.blogger.com/profile/16832145412062954289noreply@blogger.comtag:blogger.com,1999:blog-7944902213075756335.post-82987605678083199592014-04-18T20:27:20.533+08:002014-04-18T20:27:20.533+08:00Hi AK
I have bought sabana lots at $1.205, someti...Hi AK<br /><br />I have bought sabana lots at $1.205, sometime last year july.<br />If you were me, could you be divesting all of them now and swallow the loss ?<br />Kimhttps://www.blogger.com/profile/01177731631862556104noreply@blogger.comtag:blogger.com,1999:blog-7944902213075756335.post-49655784094475551732014-04-18T15:39:06.647+08:002014-04-18T15:39:06.647+08:00Hi IzyData,
Well, I am not targeting Sabana REIT ...Hi IzyData,<br /><br />Well, I am not targeting Sabana REIT per se. I have no loyalty to any one REIT or a group of REITs. :)<br /><br />Sabana REIT's management does seem rather lacking in quality but if Mr. Market should become overly pessimistic, then, Sabana REIT could still be a good investment. ;)AK71https://www.blogger.com/profile/16832145412062954289noreply@blogger.comtag:blogger.com,1999:blog-7944902213075756335.post-42128996352566887522014-04-18T15:06:52.852+08:002014-04-18T15:06:52.852+08:00It seems like the drop in DPU and poor prospects a...It seems like the drop in DPU and poor prospects ahead for Sabana stem from poor management decisions. If the earning power of the properties has dipped, eventually their valuation will dip too. Who knows whether 1.88c/quarter is the low. Rather than targeting Sabana at a lower price level, wouldn't it be more prudent to just skip this and avoid the headaches? It's not like there aren'lzyDatahttps://www.blogger.com/profile/15048717550148913082noreply@blogger.comtag:blogger.com,1999:blog-7944902213075756335.post-28444926400315402432014-04-18T08:29:14.790+08:002014-04-18T08:29:14.790+08:00Hi FoodieFC,
Well, there will be more new supply ...Hi FoodieFC,<br /><br />Well, there will be more new supply of industrial space than there will be demand in this year and next. So, softness in occupancy and rentals is to be expected.<br /><br />Sabana REIT should work really hard at retaining tenants and filling up vacant space now. With only 90% occupancy, they should not be doing any AEIs or acquisitions (both of which spend money) to AK71https://www.blogger.com/profile/16832145412062954289noreply@blogger.comtag:blogger.com,1999:blog-7944902213075756335.post-69647974584800166762014-04-18T00:50:10.855+08:002014-04-18T00:50:10.855+08:00its quite weird that they seems to have great diff...its quite weird that they seems to have great difficulties renewing the lease contracts (esp for the master lease).<br /><br />waiting for it to fall below $1 to divest in it againFoodieFChttps://www.blogger.com/profile/11205055536110127445noreply@blogger.comtag:blogger.com,1999:blog-7944902213075756335.post-80832547955832216532014-04-17T22:58:38.191+08:002014-04-17T22:58:38.191+08:00Hi Casey,
I would like to have a free show too. I...Hi Casey,<br /><br />I would like to have a free show too. I am always pragmatic. Well, I like to think I am anyway. ;pAK71https://www.blogger.com/profile/16832145412062954289noreply@blogger.comtag:blogger.com,1999:blog-7944902213075756335.post-10201747581801799562014-04-17T22:50:08.210+08:002014-04-17T22:50:08.210+08:00Hi Capricon,
I will reply to your comment in a bl...Hi Capricon,<br /><br />I will reply to your comment in a blog post. Look out for it. :)AK71https://www.blogger.com/profile/16832145412062954289noreply@blogger.comtag:blogger.com,1999:blog-7944902213075756335.post-16411374769536378562014-04-17T22:46:16.937+08:002014-04-17T22:46:16.937+08:00Hi AK,
I have gotten some at 0.87, 0.875, with an...Hi AK, <br />I have gotten some at 0.87, 0.875, with an expectation of short term yield of 8-9%, sustainable yield of 5-6%. I will sell them at any time when the sustainable yield to price fall below 5%. however, with the bad track record of J-prop investment from the FCOT, SGreit, AHT, etc, how could CRT obtain such high yield at such high property valuation? it is interesting to know the unseenCaseyhttps://www.blogger.com/profile/00669760759873565393noreply@blogger.comtag:blogger.com,1999:blog-7944902213075756335.post-50278164617774981122014-04-17T21:36:22.108+08:002014-04-17T21:36:22.108+08:00Hi Casey,
Croesus Retail Trust? Closed exactly at...Hi Casey,<br /><br />Croesus Retail Trust? Closed exactly at 89c. Just nice for you to get some. :DAK71https://www.blogger.com/profile/16832145412062954289noreply@blogger.comtag:blogger.com,1999:blog-7944902213075756335.post-28885001786333282982014-04-17T21:34:14.945+08:002014-04-17T21:34:14.945+08:00Hi OT,
It seems that everyone is abandoning their...Hi OT,<br /><br />It seems that everyone is abandoning their investment in Sabana REIT. Then, who are the people supporting it at $1.04 today? Do you know? ;pAK71https://www.blogger.com/profile/16832145412062954289noreply@blogger.comtag:blogger.com,1999:blog-7944902213075756335.post-70950369869720717812014-04-17T20:38:03.374+08:002014-04-17T20:38:03.374+08:00Hi Ak71, I always think that its yield was too goo...Hi Ak71, I always think that its yield was too good to be truth, I can't explain why it can command a NPI than the similar type from the more superior MIT, hence, was hesitate to invest. Similarly, i have a doubt on CRT, I will not consider invest in it at all if the price is higher than 0.89.<br />Casey<br />Caseyhttps://www.blogger.com/profile/00669760759873565393noreply@blogger.comtag:blogger.com,1999:blog-7944902213075756335.post-4680154268335966392014-04-17T19:27:40.682+08:002014-04-17T19:27:40.682+08:00Hi ak,
Haha I joined the fun today. I said byeby...Hi ak,<br /><br />Haha I joined the fun today. I said byebye to banana today before I saw this post of yours <br />too!<br /><br />OTOT83https://www.blogger.com/profile/10092060003214793123noreply@blogger.comtag:blogger.com,1999:blog-7944902213075756335.post-40460308078736402012014-04-17T17:12:05.614+08:002014-04-17T17:12:05.614+08:00Hi PY,
Well, for those who got in at 94c a unit o...Hi PY,<br /><br />Well, for those who got in at 94c a unit or lower, Sabana REIT has been a pretty decent investment in the last 3 years. Distribution yield of about 10% (or more) plus a 10% capital gain (or more) to boot. :)<br /><br />Time to look for a better deal elsewhere. ;)AK71https://www.blogger.com/profile/16832145412062954289noreply@blogger.comtag:blogger.com,1999:blog-7944902213075756335.post-50933104136746994162014-04-17T17:08:40.151+08:002014-04-17T17:08:40.151+08:00Hi ted,
I think we are pretty liberal with the us...Hi ted,<br /><br />I think we are pretty liberal with the use of the phrase. ;p<br /><br />Any action taken to boost DPU or to lower gearing "artificially" falls under "financial engineering". LOL.AK71https://www.blogger.com/profile/16832145412062954289noreply@blogger.comtag:blogger.com,1999:blog-7944902213075756335.post-50769358599427344272014-04-17T16:57:29.141+08:002014-04-17T16:57:29.141+08:00Divested ALL of my Sabana REITS (Cash+CPF)today af...Divested ALL of my Sabana REITS (Cash+CPF)today after holding for 3+ years. Fully agreed with you that the manager's interest is not aligned with minority interest. I began have such feeling when they placed out additional units at steep discount last year to purchase additional properties.PYhttps://www.blogger.com/profile/15586125229666984693noreply@blogger.comtag:blogger.com,1999:blog-7944902213075756335.post-40591547503355155562014-04-17T16:16:55.517+08:002014-04-17T16:16:55.517+08:00Wah, the feeling it gives me is like "fine pr...Wah, the feeling it gives me is like "fine print" instead of the "accounting" vibe that the term financial engineering gave me.<br />I googled the FE term and it does not really explain to me how it relates to this. (http://www.investopedia.com/terms/f/financialengineering.asp)<br /><br />I thought FE is a bit like borrow some money this way (sukuk?), borrow some that way (tedhttps://www.blogger.com/profile/14406941448334289149noreply@blogger.comtag:blogger.com,1999:blog-7944902213075756335.post-30989744042135241982014-04-17T15:46:50.167+08:002014-04-17T15:46:50.167+08:00Hi ted,
That would be point IV in the list. :)
T...Hi ted,<br /><br />That would be point IV in the list. :)<br /><br />The waiver of lease management fees in the first 3 years helped to bump up the REIT's distributable income. AK71https://www.blogger.com/profile/16832145412062954289noreply@blogger.comtag:blogger.com,1999:blog-7944902213075756335.post-21846008691417355912014-04-17T15:04:35.265+08:002014-04-17T15:04:35.265+08:00What is this Financial Engineering you guys are ta...What is this Financial Engineering you guys are talking about? I don't see the specific instance of it the 4 points mentioned. A bit lost...tedhttps://www.blogger.com/profile/14406941448334289149noreply@blogger.comtag:blogger.com,1999:blog-7944902213075756335.post-28091850597527449572014-04-17T13:25:42.685+08:002014-04-17T13:25:42.685+08:00Hi Gary,
Ha ha. I see. That interview is no longe...Hi Gary,<br /><br />Ha ha. I see. That interview is no longer available online. I think the file must have been corrupted or something. You have good memory. :)AK71https://www.blogger.com/profile/16832145412062954289noreply@blogger.comtag:blogger.com,1999:blog-7944902213075756335.post-10847260443368392092014-04-17T13:06:16.294+08:002014-04-17T13:06:16.294+08:00I listened to an interview between you and Adam Wo...I listened to an interview between you and Adam Wong. So somehow it reminds of you....Garyhttps://www.blogger.com/profile/16720789927377358171noreply@blogger.comtag:blogger.com,1999:blog-7944902213075756335.post-15273069193418695902014-04-17T12:58:09.897+08:002014-04-17T12:58:09.897+08:00Hi Gary,
OMG! Why did you think he was me? My voi...Hi Gary,<br /><br />OMG! Why did you think he was me? My voice? I am baffled. -.-"AK71https://www.blogger.com/profile/16832145412062954289noreply@blogger.comtag:blogger.com,1999:blog-7944902213075756335.post-42578756569945518222014-04-17T12:52:44.722+08:002014-04-17T12:52:44.722+08:00Attended Suntec AGM, got one speaker voice and I t...Attended Suntec AGM, got one speaker voice and I thought it was AK!!!! LolxGaryhttps://www.blogger.com/profile/16720789927377358171noreply@blogger.comtag:blogger.com,1999:blog-7944902213075756335.post-55525139715697130892014-04-17T12:16:40.704+08:002014-04-17T12:16:40.704+08:00Hi Mike,
There are always wild cards and a card h...Hi Mike,<br /><br />There are always wild cards and a card here is whether the Master Leases will be renewed when the time comes. No one can be sure either way.<br /><br />Financially, Sabana REIT is fairly sound and the management, although not top-notch, is not incompetent (although I believe them to be more self serving). They have pretty good assets and I like their portfolio of high tech AK71https://www.blogger.com/profile/16832145412062954289noreply@blogger.com