SGX:M1GU

Stock Analysis Report

Sabana Shari'ah Compliant Industrial Real Estate Investment Trust

Executive Summary

Sabana REIT was listed on the SGX-ST on 26 November 2010.


Snowflake Analysis

Fair value second-rate dividend payer.

Share Price & News

How has Sabana Shari'ah Compliant Industrial Real Estate Investment Trust's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: M1GU's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

-5.1%

M1GU

-3.7%

SG REITs

1.7%

SG Market


1 Year Return

-33.3%

M1GU

-20.9%

SG REITs

-26.9%

SG Market

Return vs Industry: M1GU underperformed the SG REITs industry which returned -23.2% over the past year.

Return vs Market: M1GU underperformed the SG Market which returned -29% over the past year.


Shareholder returns

M1GUIndustryMarket
7 Day-5.1%-3.7%1.7%
30 Day-37.8%-27.5%-18.4%
90 Day-39.1%-28.0%-25.6%
1 Year-28.8%-33.3%-16.2%-20.9%-23.8%-26.9%
3 Year-31.2%-44.6%5.7%-12.2%-19.3%-27.9%
5 Year-46.7%-68.5%13.0%-18.6%-18.4%-32.3%

Price Volatility Vs. Market

How volatile is Sabana Shari'ah Compliant Industrial Real Estate Investment Trust's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Sabana Shari'ah Compliant Industrial Real Estate Investment Trust undervalued compared to its fair value and its price relative to the market?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: M1GU (SGD0.26) is trading below our estimate of fair value (SGD0.6)

Significantly Below Fair Value: M1GU is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: M1GU is poor value based on its PE Ratio (13.3x) compared to the REITs industry average (9.4x).

PE vs Market: M1GU is poor value based on its PE Ratio (13.3x) compared to the SG market (10.1x).


Price to Earnings Growth Ratio

PEG Ratio: M1GU is poor value based on its PEG Ratio (1.1x)


Price to Book Ratio

PB vs Industry: M1GU is good value based on its PB Ratio (0.5x) compared to the SG REITs industry average (0.6x).


Next Steps

Future Growth

How is Sabana Shari'ah Compliant Industrial Real Estate Investment Trust forecast to perform in the next 1 to 3 years based on estimates from 1 analyst?

12.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: M1GU's forecast earnings growth (12.3% per year) is above the savings rate (1.8%).

Earnings vs Market: M1GU's earnings (12.3% per year) are forecast to grow faster than the SG market (4.7% per year).

High Growth Earnings: M1GU's earnings are forecast to grow, but not significantly.

Revenue vs Market: M1GU's revenue (2.1% per year) is forecast to grow slower than the SG market (4% per year).

High Growth Revenue: M1GU's revenue (2.1% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: M1GU's Return on Equity is forecast to be low in 3 years time (5.3%).


Next Steps

Past Performance

How has Sabana Shari'ah Compliant Industrial Real Estate Investment Trust performed over the past 5 years?

25.7%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: M1GU has a large one-off loss of SGD8.7M impacting its December 31 2019 financial results.

Growing Profit Margin: M1GU's current net profit margins (27.1%) are lower than last year (83.6%).


Past Earnings Growth Analysis

Earnings Trend: M1GU's earnings have grown significantly by 25.7% per year over the past 5 years.

Accelerating Growth: M1GU's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: M1GU had negative earnings growth (-69.5%) over the past year, making it difficult to compare to the REITs industry average (4.4%).


Return on Equity

High ROE: M1GU's Return on Equity (3.5%) is considered low.


Next Steps

Financial Health

How is Sabana Shari'ah Compliant Industrial Real Estate Investment Trust's financial position?


Financial Position Analysis

Short Term Liabilities: M1GU's short term assets (SGD22.4M) do not cover its short term liabilities (SGD78.0M).

Long Term Liabilities: M1GU's short term assets (SGD22.4M) do not cover its long term liabilities (SGD298.6M).


Debt to Equity History and Analysis

Debt Level: M1GU's debt to equity ratio (46.3%) is considered high.

Reducing Debt: M1GU's debt to equity ratio has reduced from 62.2% to 46.3% over the past 5 years.

Debt Coverage: M1GU's debt is not well covered by operating cash flow (14.3%).

Interest Coverage: M1GU's interest payments on its debt are not well covered by EBIT (2.9x coverage).


Balance Sheet


Next Steps

Dividend

What is Sabana Shari'ah Compliant Industrial Real Estate Investment Trust's current dividend yield, its reliability and sustainability?

10.43%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: M1GU's dividend (11.23%) is higher than the bottom 25% of dividend payers in the SG market (3.28%).

High Dividend: M1GU's dividend (11.23%) is in the top 25% of dividend payers in the SG market (7.15%)


Stability and Growth of Payments

Stable Dividend: M1GU has been paying a dividend for less than 10 years and during this time payments have been volatile.

Growing Dividend: M1GU has only been paying a dividend for 9 years, and since then payments have fallen.


Current Payout to Shareholders

Dividend Coverage: At its current payout ratio (76.4%), M1GU's payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: M1GU's dividends in 3 years are not forecast to be well covered by earnings (100.7% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

1.4yrs

Average management tenure


CEO

Donald Han (54yo)

2.25s

Tenure

Mr. Yong Lee Han, also known as Donald, has been the Chief Executive Officer of Sabana Real Estate Investment Management Pte Ltd, a Manager of Sabana Shari'ah Compliant Industrial Real Estate Investment Tr ...


Leadership Team

NamePositionTenureCompensationOwnership
Yong Lee Han
Chief Executive Officer of Sabana Real Estate Investment Management Pte Ltd2.25yrsno datano data
Wei Lim
Senior Vice President of Finance for Sabana Real Estate Investment Management Pte Ltd0.42yrno datano data
Chan Yong Han
Compliance Officer of Sabana Real Estate Investment Management Pte Ltdno datano datano data
Angel Goh
Assistant Manager of Human Resources of Sabana Real Estate Investment Management Pte Ltdno datano datano data
Pamela Siow
Head of Investments & Asset Management of Sabana Real Estate Investment Management Pte Ltd0.50yrno datano data
Form Po Cho
Company Secretary of Sabana Real Estate Investment Management Pte Ltd4.5yrsno datano data

1.4yrs

Average Tenure

Experienced Management: M1GU's management team is not considered experienced ( 1.4 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
Wee Peng Tan
Non-Executive Independent Director of Sabana Real Estate Investment Management Pte Ltd2.42yrsS$95.60kno data
Heng Tew Wong
Independent Non-Executive Director of Sabana Real Estate Investment Management Pte Ltd0.67yrno datano data
Shin Ein Ng
Independent Non-Executive Director of Sabana Real Estate Investment Management Pte Ltd0.67yrS$12.20kno data
Ashraf bin Mohammed Hashim
Member of Independent Shari'ah Committeeno datano datano data
Mohamed Elgari
Member of Independent Shari'ah Committeeno datano datano data
Obiyathulla Bacha
Member of Independent Shari'ah Committeeno datano datano data
Cheong Hin Tan
Independent Chairman of Sabana Real Estate Investment Management Pte Ltd0.42yrS$51.40kno data

0.7yrs

Average Tenure

54.5yo

Average Age

Experienced Board: M1GU's board of directors are not considered experienced ( 0.7 years average tenure), which suggests a new board.


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Sabana Shari'ah Compliant Industrial Real Estate Investment Trust's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Sabana Shari'ah Compliant Industrial Real Estate Investment Trust
  • Ticker: M1GU
  • Exchange: SGX
  • Founded: 2010
  • Industry: Industrial REITs
  • Sector: Real Estate
  • Market Cap: S$294.863m
  • Shares outstanding: 1.05b
  • Website: https://www.sabana-reit.com

Location

  • Sabana Shari'ah Compliant Industrial Real Estate Investment Trust
  • 151 Lorong Chuan
  • No. 02-03 New Tech Park
  • Singapore
  • 556741
  • Singapore

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
M1GUSGX (Singapore Exchange)YesUnitsSGSGDNov 2010
SBBS.FOTCPK (Pink Sheets LLC)YesUnitsUSUSDNov 2010

Biography

Sabana REIT was listed on the SGX-ST on 26 November 2010. It was established principally to invest in incomeproducing real estate used for industrial purposes, as well as real estate-related assets, in line with Shari’ah investment principles. Sabana REIT currently has a diversified portfolio of 18 quality properties in Singapore, in the high-tech industrial, warehouse and logistics, chemical warehouse and logistics, as well as general industrial sectors. Its total assets amount to S$1.0 billion. Sabana REIT is listed in several indices within the SGX S-REIT Index, Morgan Stanley Capital International, Inc (MSCI) Index and FTSE index. Sabana REIT is one of the constituents of the FTSE ST Singapore Shariah Index. Sabana REIT is managed by Sabana Real Estate Investment Management Pte. Ltd., (in its capacity as the Manager of Sabana REIT) in accordance with the terms of the trust deed dated 29 October 2010 (as amended). Sabana REIT is a real estate investment trust constituted on 29 October 2010 under the laws of Singapore. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/04/07 20:19
End of Day Share Price2020/04/07 00:00
Earnings2019/12/31
Annual Earnings2019/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.