13-02-2017, 08:58 PM
(11-02-2017, 06:58 PM)SpaceX Wrote: [ -> ](10-02-2017, 05:31 AM)momoeagle Wrote: [ -> ]Hi all,
6 years ago, I didn't invest into this but into AIMS, in the same industrial REIT arena.
One of main reasons was: I felt that Shar'iah Compliant is not an asset, but a liability. It is a form of restriction, and restrictions like this doesn't really help any business.
However, Sabana repackaged it as an asset, and something to brag about.
*Not vested since IPO.
Hi monoeagle,
Could you elaborate more on why you view Sabana as liability , form of restriction?
I bought Sabana a few years ago and sold it about 2 years later. The time read AK71 blog and he liked this Reit , however when the dividend started to drop, he immediately sold it. He wrote a blog why he sold it. Then Sabana started the trending down terribly and never stop. I was amazed that he could predict this and sold it immediately and as novice , I sold it one year later. But at least this wise person liked Sanbana at the beginning, however you had a different view even at its IPO, Seems you see even deeper, so I'm very interested how you came to that conclusion. I'm very keen to learn . Thanks
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Hi SpaceX,
I actually typed out a long post, but accidentally pressed back button and all gone
My view is not deeper. It is just a different view. Me then and now are different, perspectives are different, networth is different, so actions may also be different already.
Anyway, I shall summarize. Most of the stuff I wrote about Sabana are in the first few pages of this thread. Mainly, if I am going for stability, I will want to look for a strong sponsor. Vibrant Group, or previously FreightLinks, isn't really a strong enough sponsor in my opinion. The ability to refinance loans in the future in the event of downturns is questionable. Of course, sometimes I break my own rule, as in the case of investing with Saizen REIT. But that's another long post altogether.
Looking back at my own posts, I was too focused on three things
(1) The Sponsor
(2) Being too close to NAV at IPO. I like to buy at a discount to NAV for REITs. Of course, I broke this rule again with CapitalMall Trust's purchase at 1.91.
(3) Fellow REITs' opportunity cost, i.e. AIMS.
Although I did look through a little about Shariah Compliant, I didn't think of it much back then.
My views are simple: Would you go into a business by limiting your own clients when you do not need to? We have to remember that this country is not mainly comprised of businesses who need this restriction.
I vaguely remember that Sabana marketed this as something which will attract investors who are interested to invest in Shariah Compliant businesses. I am not sure how true or successful that is to this extent. However, Sabana mentioned nothing, or maybe minimally, about the advantages of having this in terms of revenue generation, something investors are more interested in. In business, we have to go niche for a reason, e.g. usually a part of the market that is underserved. Not niche for the sake of being niche.
A check with news on google also reveals "A lack of incentives for Islamic finance in Singapore and the absence of pension funds and bond investors that need to invest in a Shariah-compliant manner have hampered industry growth."
In addition, there are so many things unclear about being Shariah Compliant, that I wouldn't be able to understand, or take way too long to understand, that I rather just forgo earning from investing in Sabana. How do we know which businesses can rent and which businesses cannot? Supermarkets are definitely out of the picture. Storage solutions too. A A number of food preparation industry. Airlines... Many more that we might know or not know.
And do remember that is only the tip of the iceberg. If well managed, Sabana might have still be able to minimally retain DPU.
My 20/20 hindsight opinion. All these amount to nothing.