Monday, January 30, 2017

A fortunate series of events - AIMS, Mapletree, Soilbuild, Cambridge, Ascendas and Sabana Reits

I am "Old Cow Eat Tender Grass" a.k.a SGDividends
HYST called me and shouted:" May the year of the Rooster see you lose lots and lots of money and after losing all your money, lose your hair too! Just because you gave me $2 and a bunch of expired discount vouchers with minimum spend of $88.... You suck!"

She slammed the phone, before i could retort and say :" It was just a joke, look at your DBS paylah, i put $88 in it......."

A bad joke, which reminded me of the Bee Gees song.

"I started a joke which started the whole world crying. 
But I didn't see that the joke was on me oh no 
 I started to cry which started the whole world laughing 
 Oh If I'd only seen that the joke was on me......."

OK, on a serious note. Are the gripes of the shareholders against Sabana unjustified? Are they a bunch of people who lose money then kao peh kao bu? Is this just an "old cow who eats tender grass" just a blind following the blind? To answer the above questions, I compiled the following tables just so one can see clearly the alignment between a REIT and its shareholders.


While the DPU and distributable income decreases over the years from 2013 onwards to 2015, their management fees increases over the years. Does this show alignment with unitholders?

Other industrial REITS

Since people always like to say industry practice, so lets industry practice it. Let's compare with the other industrial REITS.

Ascendas is really solid. While DPU increases, the management fees decreases. Good job!

Aim's fees track their DPU. As DPU rises, fee rises. While DPU drops, fee drops. OK, you win.

Cambridge is an oddball, in that 2013 was an especially 'HUAT' year for the managers but thats because they had an extremely large performance fee due to beating a certain index. But in general, as their DPU decreases, their fees decrease too.

Mapletree is pretty good. While they increase their fees, they increased their DPU. Fair enough.

Soildbuid is doing ok. Similar to Aims, as fees increases, DPU increases. As fees decreases, DPU decreases. Justified.

Yes i am watching.
Exercise your rights and join forces.


1 comment:

  1. Hi Stephen, this is jerry low. I like your simple and comical way of presenting facts. Again, I urge you to use your knowledge and writing skill to help in our cause. There are many sad stories in this Shari'ah Compliant Sabana case bearing in mind the profile of REIT investor. I hope you consider posting/linking what you write on Sabana onto our FB and also to help answer any question a retail investor may have on our FB. You do not even have to agree with me because I know you also think the manager must go. Do consider joining as it is for a worthy cause.



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