Yesterday Sabana released their first quarter 2014 results, and it was a poor result.
Announcement here.
They were very hard hit when their master-tenanted properties lost much of their individual tenant such that the main tenant doesn’t renew with Sabana. Now they have to take over the leasing.
When the news came out, together with last years correction, many were presented with this ‘value opportunity’ for a high yield play, that is likely to be ‘misunderstood’
I’m just afraid that the mom and pop investor are usually taken in by the exceptional prevailing yield of 8%, that they may think a lot of things will work itself out.
The market sometimes sell down a REIT because the general investors do not have the same time horizon as you, and thus misunderstood.
This may present a good opportunity.
But at other times, the important fundamental determinant may have shown deterioration. ......