Approximately 2 weeks ago, Sabana REIT (Industrial REIT) announced a private placement of 40,000 000 units each at $1.00 to raise money to acquire a new property (508 Chai Chee Lane) which means that their DPU will increase in future. The market over-reacted a little & Sabana fell to a 52-week low of $1.055 declining roughly 6% of its previous closing price of $1.125. Personally, i view this announcement as a positive one as they are raising funds to acquire a new property which means that its yield & rental collection will increase in future. However, investors tend to dislike introduction of new units as it make the stock more diluted. Investors will very likely witness positive rental reversions soon in November 2013 which is why at its current price, i feel that Sabana REIT seem to be a pretty good investment for passive income. At a unit price of less than $1.100, it's yield is around 8%.
Recently, the FED decided not to cut down its stimulation & some people are getting jitters whether it's the right time to invest in REITs or not as it's only a matter of time that the FED will stop its intervention completely. Personally, any dip in market price is an opportunity to invest. Warren Buffet mentioned that whatever decisions the FED makes, he is unlikely to get affected as he believes that as long as an individual invests in a strong & sound company, short term fluctuations should be the least of any long term investors' worry.
My current holdings as of 28 Sept '13:
