Sabana REIT: Recent developments.

The REIT has proposed the acquisition of 39 Ubi Road 1. The property has a remaining tenure of about 40.4 years and is valued at $32m. The vendor, Ascend Group Pte. Ltd., will take a master lease of the entire premises for a term of 5 years. Extension works is ongoing and will add approximately 41% to the building's existing gross area. The acquisition will be funded by debt and will increase gearing level from 25.1% to 27.7% upon completion. My thoughts? With what information is available at this point in time, I like it as it would probably bump up DPU marginally for unitholders without asking us for more funds while gearing level remains very comfortable.  See announcement here.

Al Salam Bank Bahrain BSC increased its investment in the REIT by 1,909 lots at a price of 94c per unit on 2 August 2011. It now holds a 5.14% stake in the REIT. See announcement here.


The REIT received a 'BBB-' long term corporate credit rating from Standard & Poor's Rating Services. This reflects "Sabana REIT’s moderate leverage with good access to diversified funding channels and stable cash flows. The ratings also take into account the quality of Sabana REIT’s industrial property assets in Singapore and minimal capital expenditure needs. The stable outlook was based on the REIT’s balanced business risk profile as well as its adequate cash flow protection measures" and "is a significant first step that will allow Sabana REIT to access investment grade Shari’ah compliant debt and capital markets." See announcement here.

Rules for investing in difficult times.

There isn't very much that I want to say tonight because I have probably said all that I want to say in my recent blog posts. 

I just did some reading which is something I do every evening and came across an article by Aaron Task who is someone I enjoy watching on Tech Ticker.





Aaron shared 4 time honoured rules:

1. If you can't take the heat, get out!  

This is something I did not talk about but I have said time and again that investors should just do what they feel comfortable with. 

Anything we are not comfortable with, avoid. 

Aaron is quite specific in who are the people who should get out.






2. Don't panic! 

This one sounds very familiar. 

Aaron says that many investors simply cannot take the pain and are cutting and running. 

Historically speaking, many investors sell out of stocks at important market bottoms. 

This is a reason why I refuse to sell when prices are forming new lows and would only sell if they rebound to test resistance. 

Aaron is quite specific in who are the people who should not panic and should stay the course.

The 8 immortals each had his or her own way of crossing the sea.

3. Have a plan! 

Sounds familiar again. 

Aaron says it differently from me but the essence of the message is the same. 

We must understand our motivations for investing in the stocks we are invested in. 

The tools we employ and the attitude we have must be appropriate to our motivations. 

That way, we will stand a good chance of doing better with a consistent strategy and this is so both financially and emotionally!






4. Learn from your mistakes! 

Do we need to say more about this? 

Life is about learning and more learning. 

Regular readers would know that I am still learning and would have read my story. 





New readers might be interested in reading this: 

Excuse me, are you an investor?

Aaron ends his article by asking us to ask ourselves three questions, go read his article and see how you would answer these three questions. 

Could be revealing. 

Enjoy "4 rules for the see-saw market".




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STI drops 0.9% to 2,796.22 at closing Thursday, 11 August 2011

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