Sabana Shari'ah Compliant Industrial REIT (M1GU) AI Stock Analysis

• Market Cap: $410.65M
• Dividend Yield: 9.19%
• Average Volume (3M): 136.73K
• Price to Earnings (P/E): 36.1
• Beta (1Y): 0.53
• Revenue Growth: 1.28%
• EPS Growth: -37.80%
• Country: SG
• Employees: 31
• Sector: Real Estate
• Sector Strength: 64
• Industry: REIT - Industrial
• EPS (TTM): 0.01
• Shares Outstanding: 1,125,055,300
• 10 Day Avg. Volume: 82,800
• 30 Day Avg. Volume: 136,733
• PEG Ratio: 2.18
• Price to Book (P/B): 0.83
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 11.95
• 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

• Rating: 65 Neutral
• Price Target: ―

Sabana Shari'ah Compliant Industrial REIT's solid revenue and cash flow growth are positive indicators, but these are tempered by high leverage and a recent decline in net income. Technical indicators suggest potential short-term weakness, though the stock's attractive dividend yield offers some support for income investors.

Sabana Shari'ah Compliant Industrial REIT Business Overview & Revenue Model

Company Description

Sabana Shari'ah Compliant Industrial REIT (M1GU) is a real estate investment trust based in Singapore, focusing on industrial properties that are compliant with Islamic Shari'ah law. The company manages a diversified portfolio of assets including warehouses, logistics, high-tech industrial, and general industrial properties. Sabana REIT caters to tenants in various sectors such as manufacturing, logistics, and warehousing, ensuring that its operations align with Islamic principles.

How the Company Makes Money

Sabana Shari'ah Compliant Industrial REIT generates revenue primarily through rental income from its portfolio of industrial properties. The company leases space to a diverse range of tenants, which provides a stable and recurring income stream. Additionally, Sabana REIT may engage in strategic asset enhancement initiatives to increase the value and rental yield of its properties. The trust also benefits from potential capital gains through the appreciation of its real estate assets. Significant partnerships with property managers and real estate agents help optimize occupancy rates and rental income, contributing to its overall earnings.

Sabana Shari'ah Compliant Industrial REIT Financial Statement Overview

Summary

Sabana Shari'ah Compliant Industrial REIT demonstrates solid growth in revenue and operating cash flows, accompanied by strong margins, which are indicative of operational efficiency. However, high leverage and a recent dip in net income pose potential risks. The company should focus on improving profitability and managing debt to sustain financial health.

Income Statement

The company shows a consistent revenue growth trend, with a notable increase from 2020 onwards. Gross and EBIT margins are robust, suggesting efficient cost management. However, net profit margin has decreased recently due to a significant drop in net income in 2024 compared to previous years, which is a concern for profitability.

Balance Sheet

The debt-to-equity ratio is relatively high, indicating significant leverage, which could pose risks if not managed carefully. Stockholders' equity has remained stable, but the equity ratio is decreasing due to rising liabilities. This suggests a need for cautious debt management to avoid financial strain.

Cash Flow

Operating cash flow is strong and supports free cash flow, indicating good cash generation capability. The free cash flow to net income ratio is favorable, reflecting effective conversion of income into cash flow, although the free cash flow growth rate has been variable.

Breakdown
TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
142.41M	113.31M	111.88M	94.91M	81.91M	71.70M
	Gross Profit
70.33M	52.70M	50.42M	53.28M	51.95M	44.64M
	EBIT
58.97M	51.31M	44.37M	58.95M	59.58M	-26.20M
	EBITDA
34.64M	0.00	39.19M	66.79M	61.70M	33.25M
	Net Income Common Stockholders
18.79M	11.37M	18.07M	52.77M	48.82M	-42.21M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
8.01M	18.48M	16.07M	8.01M	25.86M	9.52M
	Total Assets
983.19M	1.02B	1.01B	983.19M	971.65M	930.72M
	Total Debt
365.40M	426.43M	391.46M	365.40M	388.30M	362.28M
	Net Debt
357.39M	407.95M	375.39M	357.39M	362.45M	352.76M
	Total Liabilities
397.40M	459.68M	429.55M	397.40M	415.68M	390.97M
	Stockholders Equity
585.79M	564.90M	576.54M	585.79M	555.97M	539.75M
Cash Flow		Free Cash Flow
38.61M	13.81M	27.78M	45.85M	39.31M	25.14M
	Operating Cash Flow
41.99M	35.55M	32.04M	48.53M	48.85M	40.14M
	Investing Cash Flow
-22.31M	-21.67M	-16.70M	-2.67M	-9.53M	-14.98M
	Financing Cash Flow
-16.29M	-11.46M	-7.29M	-63.70M	-22.99M	-19.74M

Sabana Shari'ah Compliant Industrial REIT Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 0.40
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SG:M1GU, the sentiment is Positive. The current price of 0.4 is above the 20-day moving average (MA) of 0.38, above the 50-day MA of 0.37, and above the 200-day MA of 0.35, indicating a bullish trend. The MACD of <0.01 indicates Negative momentum. The RSI at 69.42 is Neutral, neither overbought nor oversold. The STOCH value of 91.67 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for SG:M1GU.

Sabana Shari'ah Compliant Industrial REIT Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
A17U	76 Outperform	$11.88B	15.02	7.61%	6.55%	-1.52%	313.98%
T82U	66 Neutral	$3.32B	29.20	1.86%	5.25%	-1.16%	-34.74%
M1GU	65 Neutral	$410.65M	36.14	1.98%	9.19%	1.28%	-37.80%
ME8U	62 Neutral	$5.53B	16.41	6.85%	6.90%	1.34%	195.50%
Sector *	61 Neutral	$2.85B	10.96	0.41%	8438.88%	5.73%	-21.25%
M44U	59 Neutral	$5.63B	30.41	2.74%	6.43%	-0.97%	-40.20%
9A4U	53 Neutral	S$1.84B	―	-6.38%	9.43%	-4.01%	-66.90%

Sabana Shari'ah Compliant Industrial REIT Corporate Events

Sabana REIT Opens Price Discovery Process to ESR Group

Sabana Shari’ah Compliant Industrial REIT announced that ESR Group Limited and its associates are allowed to participate in the price discovery process for the potential sale of properties held by Sabana REIT. The REIT Manager has established procedures to ensure compliance with relevant laws and regulations, including those related to interested person transactions, which could impact the company’s operations and stakeholder interests.

Sabana REIT Allows ESR Participation in Price Discovery Process

Sabana REIT Manager announced that ESR Group Limited is allowed to participate in the price discovery process for properties held by Sabana REIT. This process is part of preparations for an upcoming extraordinary general meeting, and ESR’s participation will adhere to relevant legal and regulatory frameworks, ensuring compliance with Singapore Exchange rules and the Monetary Authority of Singapore’s guidelines.

Sabana Industrial REIT Engages Unitholders with AGM Q&A Session

Sabana Industrial REIT has announced that it will address substantial questions from its unitholders ahead of its Annual General Meeting scheduled for April 22, 2025. The company has invited unitholders to submit questions by a specified deadline and will also allow additional questions during the AGM, indicating a commitment to transparency and stakeholder engagement.

Sabana Industrial REIT Updates Unitholders on Recent Developments

Sabana Industrial REIT has issued an update to its unitholders through its trustee, HSBC Institutional Trust Services (Singapore) Limited. The announcement is intended to keep stakeholders informed about the latest developments and ensure transparency in its operations, reflecting the company’s commitment to maintaining clear communication with its investors.

Sabana REIT Faces Uncertainty Amid Managerial 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 or extend loan facilities due in March 2026. The removal of SREIM as manager could trigger a review event under existing financing arrangements, potentially leading to mandatory prepayment of loans, which raises concerns about the REIT’s financial stability.

Sabana Industrial REIT to Release 1Q 2025 Financial Results Amid Going Concern Uncertainty

Sabana Industrial REIT announced that it will release its financial results for the first quarter of 2025 on April 15, 2025, after trading hours. This announcement follows the requirement for quarterly reporting due to a material uncertainty related to going concern, as highlighted by the auditors in the financial statements for the years ending December 2023 and 2024. The uncertainty is linked to an ongoing internalisation exercise that could potentially impact the REIT’s financial stability and necessitate mandatory loan prepayments if agreements with lenders are not satisfactorily reached.

Sabana Industrial REIT Receives New Requisition Notice from Unitholders

Sabana Industrial REIT has received a new requisition notice from its unitholders, who hold a significant stake in the trust, to either include certain resolutions in the upcoming Annual General Meeting or convene an extraordinary general meeting. This new notice replaces a previous one, reflecting the unitholders’ preference to streamline processes and potentially reduce costs, indicating a strategic shift in managing stakeholder engagements and operational efficiencies.

Sabana Industrial REIT to Convene Extraordinary General Meeting

Sabana Industrial REIT has announced plans to convene an extraordinary general meeting (EGM) following a request from a group of unitholders holding more than 10% of the trust’s units. This meeting will address specific resolutions proposed by these unitholders. The details of the EGM, including its date, time, and location, will be communicated to all unitholders in due course, and they are advised to exercise caution with their units until further announcements are made.

Sabana REIT Prioritizes Internal Management Transition to Enhance Unitholder Value

Sabana Industrial REIT’s Internalisation Committee and Directors Elect are committed to enhancing value for unitholders by transitioning to an internal management structure, anticipated by Q2 2025, pending regulatory approval. They oppose resolutions proposed by certain unitholders for an asset sale, instead planning strategic evaluations post-transition to maximize portfolio value, noting recent favorable market conditions for industrial properties.