Like a moth to a flame
Burned by the fire
My love is blind
Can't you see my desire?
- Janet Jackson
So if you have read my previous post about this particular "Hot sweet young thing " friend who recommended me to buy Sabana, she is back to recommend me! After Sabana's price having dropped further to $0.38 from the price of $0.51 when she recommended me. (Due to rights).
Hot Sweet Young Thing ( onwards called HSYT) said:" COme oN, a lousy business is a good investment at the right price. Can you calculate how Sabana will be affected by the rise in interest rate instead of just amplifying what is thrown around about a rise in interest rate and REITS are going to die...PleAse!"
Being a HSYT does have her privileges....so....
To calculate the debt of Sabana post rights
|Using the above to calculate Debt|
To calculate the distribution of Sabana post rights
With the 3 new purchases, the increment in distribution is assumed to be $6.15 million per year. This figure is attained from investmentmoats. I agree with his way of calculating this figure. I emailed Sabana investor relations for a post -rights forecasted distribution but they replied that they were unable to provide and told me to wait for the Offer Information Statement ( together with the application forms) which will include more information.
Pre-rights latest distribution annualised based on the table below = 4.77cents per unit.
Pre-rights total number of shares = 778 million.
Pre -rights total distribution annualised per year = $37.1 million ( $0.0477 times 778 million shares)
|Lastest distribution pre-rights for annualised DPU|
Interest rate sensitivity of Sabana post rights
|Interest rate sensitivity|
By the way, it is quite irritating that Sabana isn't able to give a forecasted DPU while other Reits do give. This makes it troublesome to do the above. Arrgh the privileges of a HSYT....