Sabana REIT (M1GU.SG) +0.5% at $0.975 on light volume, still struggling to make headway since dismal debut last Friday, with units consistently closing below $1.05 IPO price every session.
Sale of units in open market by substantial shareholder Moore Capital Management not helping sentiment, with fund trimming stake to 6.38% vs 7.80% yesterday.
Sale of units in open market by substantial shareholder Moore Capital Management not helping sentiment, with fund trimming stake to 6.38% vs 7.80% yesterday.
Shari’ah-compliant REIT’s main draw remains its yield, now higher after recent price pullback at 8.9% based on yesterday’s closing price vs 8.2% based on IPO price.
Still, Kim Eng Securities analyst Anni Kum says challenges lie ahead for Sabana, with acquisition prospects tough given keen competition for industrial properties in Singapore, unattractive pipeline of assets from sponsor Freight Links (F01.SG); “two out of the three properties of Freight Links...are old and require redevelopment or additional investments.” Orderbook quotes suggest price unlikely to clear $1.00.
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