Considering that the price of Sabana is 52 cents, based on the returns of 1.2 cents in the form of a cash dividend this translates to a CASH YIELD of 2.3% quarterly or 9.2% per annum annualised.
Singapore's economy growth forecast has been placed 1-2%. This has neither a positive or negative bearing as the number of stock has been steadily rising from the performance fees paid out in the form of shares. As the number of Shares in circulation goes up, it dilutes the earning per share.
The high yield that this REIT relative to other REITS have is certainly a bonus to the investors of this company. As a person who valuate value, any investment that allows a 9% dividends in cash certainly makes for a good stake to be purchased and added to the portfolio. This is also a good company to add to a margin account where we can take back 70% of the value in CASH which can then be reinvested. The interest rate on the margin account i use at DBS is 2.88%. This means u get a positive cash return of approximately 6% after paying off the interest.
As an investor its best to weigh your own risk appetite and decide what levels of risk you are prepared to incur. Kindly leave any comments on this company or if you think there are important points to note.