In Property on 09/12/2010 at 5:23 am
This piece of news (Sabana) in Monday’s ST did nothing to support the stock, because although it reported insiders buying at higher prices to support the IPO (issue price; 1.05), it also reported that a substantial shareholder had dumped shares. If this shareholder came in via the placement, if I were Sabana, or FreightLinks or other keystone investors, I’d be upset with the placing broker.
It went on falling. On Wednesday it closed at0.95, having fallen to 0.94 on Tuesday.
But SIAS research was quoted by ST as saying that at last friday’s closing price of 0.975? Sabana was a buying opportunity.
Well SIAS Research is part of self-styled shareholders’ champ SIAS. But wouldn’t it have done better to point out that AIMSAMP industrial reit gives a yield of 9.5% and trades at discount to last reported NAV of 18%?
Me, I think Sabana is attractive at 0.81, when over 10% yield and a 18% discount to NAV of 0.99cents. As to whether it gets there
Know for a surety each must play his game,
As from heaven’s dice-box fate’s dice chance to fall.
BTW, I have no economic interest in AIMSAMP. It is on my “Feel like buying, but no hurry” list.
In Property, Temasek, S'pore Inc on 01/12/2010 at 5:57 am
Sabana Reit needs yr help.
This is the first Shariah-compliant reit listed on the Singapore exchange (SGX), and the world’s largest listed Shariah-compliant reit by total assets. Looks like analysts were wrong to expect Sabana to attract Middle Eastern investors saying there are not many such Shariah-compliant REITs in Asia ( M’sia has three, and this is all it seems). Either they got no money, or there are more attractive investments elsewhere or in more lucrative products.
At yesterday’s closing price of 0.97 its first yr projected yield is now slightly more than the 8.22% at the IPO price of price of 1.05.
But it trades only at a “peanuts” 2 cents above NAV of 0.99 in cash. But the properties to be injected in will only give an NAV of the 0.99.
For the time, being this infidel prefers AIMSAMP industrial reit which trades at a yield of 9.5% and an 18% discount to last published NAV. True gearing is at 35% versus Sabana’s 25%,: but the former has big Aussie insurer AMP as big brother, and the latter can only “borrow” from a limited number of “lenders” and via complicated structures. And I don’t have enough info to make judgements on its big brothers.
BTW looks like Temasek’s Mapletree industrial reit has beaten this Shariah-compliant industrial reit performance-wise in IPO terms. They IPOed within weeks of each other recently.
Moral of the tale for pious folk of any religion: God may rule in heaven but on SGX, investors prefer to invest in a Temasek-linked reit, rather than a religious-compliant reit. The blasphemous (not I) may want to shout, “Harry rules OK” or “In S’pore, God takes advice from MightyMind”.