Sabana Industrial REIT Dividend Yield Falls from 8.1% to 6.9%

Yesterday Sabana released their first quarter 2014 results, and it was a poor result.

Announcement here.

Sabana Industrial REIT Dividend Yield Falls from 8.1% to 6.9% 5ACxEV5

They were very hard hit when their master-tenanted  properties lost much of their individual tenant such that the main tenant doesn’t renew with Sabana. Now they have to take over the leasing.

When the news came out, together with last years correction, many were presented with this ‘value opportunity’ for a high yield play, that is likely to be ‘misunderstood’

I’m just afraid that the mom and pop investor are usually taken in by the exceptional prevailing yield of 8%, that they may think a lot of things will work itself out.

The market sometimes sell down a REIT because the general investors do not have the same time horizon as you, and thus misunderstood.

This may present a good opportunity.

But at other times, the important fundamental determinant may have shown deterioration. In this case it is the ability of the manager and the power of this manager.

No doubt, not all industrial reits result have been fully released, but one manager in the same category as Sabana, that is Cambridge release their results yesterday and it was ok.

Incidentally, Sabana’s manager was Cambridge old manager, who made quite a fair bit of missteps in the GFC.

Sabana Industrial REIT Dividend Yield Falls from 8.1% to 6.9% 0vNG8mi

Focusing on the industrial REITs on my Dividend Stock Tracker, you will realize the prevailing yield is not as attractive versus peers anymore. The net debt to asset is also amongst the highest (note Aims Amp have the highest since they have some AEI ongoing, it is rather close to 37% instead of 25%)

Evaluation of REIT by  yield alone is dangerous. At the end of the day, it is a group of finance folks deploying money and leveraging to buy and rent properties, sometimes selling. The manager plays an important role here.

If you like this article do share it around, get started with Wealth Building with my best resources here.

To get started with dividend investing, start by bookmarking my Dividend Stock Tracker which shows the prevailing yields of blue chip dividend stocks, utilities, REITs updated nightly.

Make use of the free Stock Portfolio Tracker to track your dividend stock by transactions to show your total returns.

I just freaking simulated 10 years of my life with Why Moolah and live to tell the tale

I just freaking simulated 10 years of my life with Why Moolah and live to tell the tale thumbBig 0

I have a soft spot for some things. Startups are probably one of them. Its not a good feeling when you lived in a country where the leaders say are the most developed in the region and its been sometime since they came up with a non-Temasek linked business. So sometimes I like to take the opportunity to share some of these start ups that have been doing some good.

The PR folks at Precious Communications contacted me and introduce their game Why Moolah. This is the same folks who collaborated with some local banks to launch a game platform to teach financial literacy in a fun manner for kids using Play Moolah.

Why Moolah is for adults. Specifically its for folks starting from the age of 20 probably.

It is to help adults simulate life events such as Getting Married, Buying a House and Making babies and how they mesh into your daily life. The game starts when you are 24 years old and just progresses to when you are around 34-35 years old.

I thought it was a rather well made game that can get quite addictive. Don’t worry you should be able to complete it in 1.5 hours for Act 1. Currently only Act 1 is available.

For a 34 year old, its basically playing what happens if you can go back 10 years ago.

Through the game:

  • I get some primer lessons to credit card usage, the rough miscellaneous cost of buying a house, getting married and trying to get a child
  • I learn to invest in the index. The sucky thing (perhaps it is deliberate) is that they didn’t say it’s a ETF or what. But its rather not bad because they let you make the decision to channel to deposit, or stock market. You learn what you need to start investing and can channel money when you get salary and all
  • Your time period just get squeeze and you realize you are a hamster on a treadmill. A lot of things that will happen to you in the next 10 years will  be simulated in 1.5 hours
  • I learn that other than work you need to upgrade my skills, exercise, have fun
  • I know that I should never pick Engineer at the start of the game
  • I grow to hate the auntie that keep asking me to get married and have babies

I thought they mesh everything up really well, including stock market crashes and all. But its rather strange to see the index going to $5.00.

What I don’t like is that DBS is sponsoring the app and you can see DBS Everyday Card, Live Cards in there. Its rather subtle marketing. That’s the cost of them doing this service of educating you.

I sort of see some benefits in getting folks to play this game.

If you have a son or daughter around that age going to step out of university this game can be rather useful to put all the realities in life into their heads.

The game ends when your savings become ZERO, and in this case it might be a good tool to mentor a friend who really needs help.

You can download this game at IOS App Store and Android Play Store.

I just freaking simulated 10 years of my life with Why Moolah and live to tell the tale dbslady

I just freaking simulated 10 years of my life with Why Moolah and live to tell the tale thumbBig 7

If you like this article do share it around, get started with Wealth Building with my best resources here.

To get started with dividend investing, start by bookmarking my Dividend Stock Tracker which shows the prevailing yields of blue chip dividend stocks, utilities, REITs updated nightly.

Make use of the free Stock Portfolio Tracker to track your dividend stock by transactions to show your total returns.