Sabana REIT- Read beyond numbers ( Biased )

( no vested interest, divested early 2015)

Sabana has good discount to NAV and good yield, but look beyond numbers.

I have not seen management killing messengers. When rating company S&P reduced it credit rating, what did it do? It requested that credit rating to be withdrawn. It's loans are no longer rated and the reason given is it is unnecessary as rated or not, it's a 45% ceiling. 

Really? Then why do companies go for rating? To have a lower cost of borrowing! Just look at the terms of loans for LMIR before and after rating. If I am Kevin, I would give a proper explanation, perhaps assuring investors That loans from the shari' ah compliant loans are not rating sensitive. 

The only numbers u should look at for Sabana is now price. How much fall it would go before it become a fallen angel/ turnaround play? Beware of fallen devil though. 

Look at execution records, don't look at yield, ratios and determine buy decisions. 

Their disposal recently? Is it a good deal? I leave it to you, to see the bright spots. I do not need to search high and low for bright spots when A-reit announced its disposal.

Their ability to retain master-leases and their ability to manage their portfolio when it become multi-tenants leases, how long did they take to fill occupancy of acquisitions. 

Their high tech building Acquisition at 50% occupancy, I remember giving them the benefit of doubts of 2 quarters. I no longer follow their reports. U can find out the chai chee building occupancy, compare it with Asperia. 

Since I am not into turnaround or fallen angels play, I will give it a miss. I would think Silverlake looks more like a turnaround play. 

I dun like warlords that kill messagers. How about u?