Sunday, November 27, 2022
HomePassive IncomeSabana REIT: Nearer to 52c NAV.

Sabana REIT: Nearer to 52c NAV.

Sabana REIT was buying and selling at an enormous low cost to NAV once I elevated my funding considerably on the finish of 2020 and the beginning of 2021.

Immediately, it’s nonetheless buying and selling at a 13.5% low cost to NAV.

If we expect a 3.1 cent DPU is sustainable, then, at 45c a unit, we’re a distribution yield of 6.89% which is not too dangerous.

It is not too dangerous as a result of we might see DPU growing within the not too distant future as Sabana REIT’s portfolio is beneath rented.

In fact, there’s a risk that the portfolio might stay beneath rented.

Nonetheless, I’ve a sense that issues are extra possible to enhance.

I prefer to see what insiders are doing and I discover it very fascinating that Donald Han, Sabana REIT’s CEO, purchased 100,000 models at 45c a unit in late April.

Being beneath rented implies that Sabana REIT doesn’t must rely too closely on acquisitions to develop its earnings.

From their presentation dated 21 Might 2022, this might give earnings a lift:

AEIs and maxing out plot ratios will likely be very useful too:

Sabana REIT’s financials are comparatively sturdy and that is necessary as peace of thoughts is priceless.

It is vitally lucky that Sabana REIT didn’t fall prey to the low ball supply by ESR REIT.

A gem within the tough that’s nonetheless within the strategy of being polished, I hope that Sabana REIT will shine brighter in my portfolio.

In fact, whether or not Mr. Market agrees or not is one thing else.

If Mr. Market agrees, then, we should always see Sabana REIT buying and selling nearer to its NAV of 52 cents per unit in time to come back.

My bowling ball that thinks it’s a crystal ball says a unit worth of 48 cents and even 49 cents wouldn’t be unreasonable.

The data shared on this weblog is taken from Sabana REIT’s newest presentation dated 21 Might 2022.

See full slides: HERE.

Having constructive vibes about Sabana REIT has nothing to do with the $20 purchasing vouchers they despatched to me.


I hardly depart residence however I assume I’ll make a visit to look look see see.

Just lately revealed:
1. CLCT: One other largest funding.
2. FLT: One other largest funding.

Associated submit:
Sabana REIT’s lesson.



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