I Stepped on Banana Skin and had a Bad Fall...with this REIT *Ouch*

When I first started investing in Reits, I did not research the companies that I was going to invest in. I bought purely on the dividend yield. Below shows the price chart of this Reit that I invested in. My average price was $1.235 and I owned 16000 shares. Can you guess which Reit?

Screenshot from stocks.cafe

I held this stock for a few years. Both the share price and dividend yield keeps going down. I decided to liquidate my holdings in this Reit last year when the ceo made this comment in 1 of their company announcement: In the meantime, Unitholders are advised to refrain from taking any action in respect of their units in Sabana REIT (“Units”) which may be prejudicial to their interests, and to exercise caution when dealing in the Units. 

I had a wakeup call at that moment. 😱 What is this guy trying to say? Sounds like a warning to me. I thought if the management team was still in their la la land and couldn't wake up, maybe I should be the 1 waking up. I sold all my holdings at $0.51 when the market opened. I knew I made the right choice to cut loss when I read about their rights issue and meeting with Sichuan Development Holding's President. They can't even do a good job with local market and they want to venture into overseas market?

Fast forward to today, they just announced their quarterly result yesterday on 10.5.2017. As usual, the results look really bad.

However, this time round there is a piece of good news. The ceo has resigned and his last day would be on 31.12.2017. Hopefully, they could find a capable successor soon to succeed the current 1.

Now back to bad news for this Reit. During their recent AGM, there's this piece of slide. 36.8% of their leases are due for expiry this year. Five master leases are to expire in 4Q 2017, three of which are Sponsor related properties. The Manager has already initiated discussions with the master tenants of these five properties. Positive or Negative rental reversion? Hopefully their sponsor can support the Reit by volunteering to pay higher rents. 😀 Fun fact: There's only 8 presentation slides for their AGM and only 4 slides contain relevant information.

My experience with this Reit makes me more cautious when investing for dividends. I would prefer investing in a company with a good track record and strong sponsor. The track record of this Reit was too short when I invested in it. I prefer at least 5 years of dividend records. That's why I am not invested in EC World Reit yet even though I see the huge potential for ecommerce. The Manager of the Reit is also very important. Their interests have to be aligned with the shareholders. For this company that I talked about today, the Management team are paid a fix sum of salary and not tied to the performance of the Reit. Lack of motivation? If not motivation, then competency?

I am glad I "resigned" last year. My remaining funds left from this Reit are better off invested elsewhere. I hope this ceo will not join the other companies that I am currently invested in, 😀