Sabana Industrial REIT (M1GU) AI Stock Analysis

• Market Cap: S$540.03M
• Dividend Yield: 6.71%
• Average Volume (3M): 692.43K
• Price to Earnings (P/E): 47.5
• Beta (1Y): 0.66
• Revenue Growth: 1.28%
• EPS Growth: -37.80%
• Country: SG
• Employees: 31
• Sector: Real Estate
• Sector Strength: 53
• Industry: REIT - Industrial
• EPS (TTM): <0.01
• Shares Outstanding: 1,125,055,300
• 10 Day Avg. Volume: 469,360
• 30 Day Avg. Volume: 692,426
• PEG Ratio: -0.92
• Price to Book (P/B): 0.72
• Price to Sales (P/S): 3.57
• P/FCF Ratio: 29.25
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 67 Neutral
• Price Target: S$0.52 ▲(8.33% Upside)

Overall score reflects solid financial performance supported by strong recent revenue and cash flow conversion, but tempered by historical volatility and rising leverage. Technicals are moderately positive with price above major moving averages. Valuation is mixed: a high dividend yield is offset by a very high P/E.

Positive Factors

Strong recent revenue growth

A ~74% TTM revenue increase implies materially stronger leasing or higher rents across the industrial portfolio. For a REIT, durable revenue expansion improves the recurring rental base and cash flow visibility, supporting distributions and reinvestment capacity over the next several months.

High free cash flow conversion

FCF nearly matching net income indicates earnings reliably convert into cash, reducing reliance on external funding for payouts and capex. For a REIT, strong cash conversion enhances the sustainability of distributions and the ability to service debt across the medium term.

Solid operating profitability

A ~17% net margin reflects resilient earnings from rental operations and potential operational efficiency. Stable margins driven by long-term leases and predictable property economics support ongoing cash generation and reduce sensitivity of distributable income to short-term demand swings.

Negative Factors

Rising leverage

Debt-to-equity near 0.79 and an upward drift in leverage reduce balance-sheet flexibility. Higher leverage increases refinancing and interest-rate exposure for a REIT, constraining capacity for acquisitions or opportunistic capital deployment and elevating risk to distributions if conditions worsen.

Volatile earnings and cash flows

Historical swings in earnings and FCF (including a large loss in 2020 and swings 2021–2024) undermine predictability of distributable income. This variability complicates multi-quarter planning, may force external financing in weak periods, and raises execution risk for steady payouts.

Modest returns on equity

A TTM ROE of ~3.6% signals limited capital efficiency in generating equity returns. Over months, modest ROE constrains ability to internally fund growth or boost unit-holder returns, likely increasing dependence on external capital for expansion or to stabilize distribution levels.

Sabana Industrial REIT Business Overview & Revenue Model

Company Description

Alpha Integrated Real Estate Investment Trust engages in the business of investing in income producing real estate used for industrial purposes and estate-related assets. It operates through the following segments: High-Tech Industrial, Chemical Warehouse and Logistics, Warehouse and Logistics, and General Industrial. The company was founded by Kevin Xayaraj and Chiew Sheng Tay on October 29, 2010 and is headquartered in Singapore.

How the Company Makes Money

Sabana Industrial REIT generates revenue primarily through leasing its industrial properties to tenants, which provides a steady stream of rental income. The company benefits from long-term lease agreements, often with built-in rental escalations, that enhance its income stability. Additionally, Sabana may earn income from property management fees and other ancillary services related to the maintenance and operation of its assets. Key revenue streams include base rents, percentage rents linked to tenant sales, and income from any property development initiatives. The REIT may also engage in strategic partnerships with logistics firms and other businesses to optimize its property utilization and attract high-quality tenants, thereby bolstering its earnings.

Sabana Industrial REIT Financial Statement Overview

Summary

Income statement is solid (revenue sharply higher TTM and ~17% net margin), and cash flow conversion is strong (FCF/NI ~0.98). Offsetting this, profitability and free cash flow have been volatile across years, and leverage has drifted higher, limiting flexibility.

Income Statement

TTM (Trailing-Twelve-Months) revenue is up sharply (about +74%), and profitability is solid with a net margin around 17% and strong operating profitability. However, earnings quality has been volatile across the cycle (notably a large loss in 2020 and unusually high margins in 2021–2022), and recent margin levels are lower than the peak years—suggesting results can swing meaningfully with valuation/gains or one-offs.

Balance Sheet

Leverage is moderate for an industrial REIT, with debt-to-equity around 0.79 in TTM (Trailing-Twelve-Months) and equity still comfortably larger than debt. Returns on equity are positive but relatively modest (about 3.6% TTM), and leverage has drifted higher versus 2022–2023, which reduces balance-sheet flexibility if operating conditions soften.

Cash Flow

TTM (Trailing-Twelve-Months) free cash flow is strong and nearly matches net income (free cash flow to net income ~0.98), and free cash flow growth is very strong versus the prior year. The main concern is consistency: prior years show sizable swings in free cash flow (including declines in 2023–2024), and the ability of operating cash flow to cover obligations has been uneven over time.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	118.35M	113.31M	111.88M	94.91M	81.91M	71.70M
Gross Profit	60.24M	52.70M	51.34M	48.49M	51.95M	44.64M
EBITDA	27.67M	33.03M	39.19M	66.79M	61.70M	33.25M
Net Income	20.25M	11.37M	18.07M	52.77M	48.82M	-42.21M
Balance Sheet
Total Assets	1.02B	1.02B	1.01B	983.19M	971.65M	930.72M
Cash, Cash Equivalents and Short-Term Investments	19.28M	18.48M	16.07M	8.01M	25.86M	9.52M
Total Debt	432.18M	426.43M	391.46M	365.40M	388.30M	362.28M
Total Liabilities	473.63M	459.68M	429.55M	397.40M	415.68M	390.97M
Stockholders Equity	548.75M	564.90M	576.54M	585.79M	555.97M	539.75M
Cash Flow
Free Cash Flow	53.17M	13.81M	27.78M	45.85M	39.31M	25.14M
Operating Cash Flow	54.49M	35.55M	44.48M	48.53M	48.85M	40.14M
Investing Cash Flow	-12.13M	-21.67M	-16.70M	-2.67M	-9.53M	-14.98M
Financing Cash Flow	-45.15M	-11.46M	-7.29M	-63.70M	-22.99M	-19.74M

Sabana Industrial REIT Technical Analysis

• Last Price: 0.48

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SG:M1GU, the sentiment is undefined. The current price of 0.48 is equal to the 20-day moving average (MA) of ―, equal to the 50-day MA of ―, and equal to the 200-day MA of ―, indicating a neutral trend. The MACD of ― indicates undefined momentum. The RSI at ― is undefined, neither overbought nor oversold. The STOCH value of ― is undefined, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a undefined sentiment for SG:M1GU.

Sabana Industrial REIT Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	65 Neutral	$2.17B	12.19	3.79%	4.94%	3.15%	1.96%

Sabana Industrial REIT Corporate Events

Mindarie Investment Launches Mandatory Cash Offer for All Remaining Units in Alpha Integrated REIT

Mindarie Investment Pte. Ltd., through financial adviser United Overseas Bank, has launched a mandatory conditional cash offer to acquire all issued and outstanding units of Alpha Integrated Real Estate Investment Trust that it does not already own or control. The offer, made under Singapore’s takeover regulations, signals a potential change in control of AI-REIT and could alter its ownership structure and strategic direction, with implications for existing unitholders and the trust’s positioning in the local real estate investment market.

The most recent analyst rating on (SG:M1GU) stock is a Hold with a S$0.51 price target. To see the full list of analyst forecasts on Sabana Industrial REIT stock, see the SG:M1GU Stock Forecast page.

Mindarie Launches Mandatory Cash Offer for Alpha Integrated REIT Units

Mindarie Investment Pte. Ltd., through financial adviser United Overseas Bank, has launched a mandatory conditional cash offer for all issued and outstanding units of Alpha Integrated Real Estate Investment Trust that it and its concert parties do not already own, in compliance with Singapore’s takeover regulations. A formal offer document detailing the terms, conditions and acceptance procedures will be circulated electronically to unitholders within 14 to 21 days of the offer announcement, and the REIT’s board will appoint an independent financial adviser to guide its independent directors on how to evaluate the bid and advise unitholders, marking the start of a potential change of control process that could materially affect the trust’s ownership and strategic direction.

The most recent analyst rating on (SG:M1GU) stock is a Hold with a S$0.50 price target. To see the full list of analyst forecasts on Sabana Industrial REIT stock, see the SG:M1GU Stock Forecast page.

Mindarie Investment Launches Mandatory Cash Offer for Alpha Integrated REIT Units

Mindarie Investment Pte. Ltd., indirectly wholly owned by Volare Group AG, has triggered a mandatory conditional cash offer for all issued and outstanding units in Alpha Integrated Real Estate Investment Trust not already owned or controlled by it and its concert parties, after Volare entered into an agreement to acquire a substantial stake from ESR Group Limited and E-Shang Infinity Cayman Limited. The offer, to be made in compliance with Rule 14 of the Singapore Code on Take-overs and Mergers, underscores a potential change of control at AI-REIT and could alter its unitholder base and strategic direction, marking a significant development in the Singapore REIT market and for existing investors evaluating the terms of the cash exit opportunity.

The most recent analyst rating on (SG:M1GU) stock is a Hold with a S$0.50 price target. To see the full list of analyst forecasts on Sabana Industrial REIT stock, see the SG:M1GU Stock Forecast page.

Alpha Integrated REIT Announces Change in Company Secretary

Alpha Integrated REIT Management Pte. Ltd. has announced a change in its company secretary, appointing Mr. Cho Form Po to replace Ms. Toh Li Ping, Angela, effective December 15, 2025. This change reflects the company’s ongoing efforts to streamline its management team and maintain its strong position in the industrial real estate market, ensuring continued effective governance and operational efficiency.

The most recent analyst rating on (SG:M1GU) stock is a Hold with a S$0.50 price target. To see the full list of analyst forecasts on Sabana Industrial REIT stock, see the SG:M1GU Stock Forecast page.

Alpha Integrated REIT Secures Lender Support and Plans Redevelopment

Alpha Integrated REIT has successfully received necessary waivers from lenders, reflecting confidence in its strategic direction and financial stability. The REIT’s external auditor, Ernst & Young LLP, has removed the going concern emphasis from its financial statements, indicating solid financial health. AI-REIT is exploring redevelopment opportunities, particularly a 200,000 square feet project at New Tech Park, and is in discussions with financial institutions to maintain a prudent capital structure.

The most recent analyst rating on (SG:M1GU) stock is a Hold with a S$0.50 price target. To see the full list of analyst forecasts on Sabana Industrial REIT stock, see the SG:M1GU Stock Forecast page.

Sabana Industrial REIT Trustee Issues Update to Unitholders

HSBC Institutional Trust Services (Singapore) Limited, acting as the trustee for Sabana Industrial REIT, has issued an update to its unitholders. The announcement serves to inform stakeholders of ongoing developments and ensures transparency in the management of the REIT, potentially impacting investor confidence and market positioning.

Sabana REIT Manager Bids Farewell with Strong Performance and Sustainability Goals

Sabana Real Estate Investment Management Pte. Ltd., the outgoing manager of Sabana Industrial REIT, expressed gratitude to stakeholders for their support. The REIT achieved its strongest quarterly performance since 2018, with 19 consecutive quarters of positive rental reversion. The company has focused on sustainability, generating solar energy across its properties, and aims to be carbon neutral by 2040. The message highlighted the contributions of staff, tenants, business partners, bankers, and regulators in achieving these milestones.

Sabana Industrial REIT Faces Financial Uncertainty Amid Management Changes

Sabana Industrial REIT has announced a material uncertainty regarding its ability to continue as a going concern, due to potential financial implications from the internalisation process and the need to refinance loans due in March 2026. The removal of its current manager, SREIM, could trigger mandatory prepayment clauses in existing unsecured loan agreements, posing a significant challenge to its financial stability.