I took a hard look at what analysis and assumption was made, and what was missed. I invested then due to the high yield, and believe the risks were manageable. Now, post mortem examination will allow me to identify gaps
1) Weak sponsor.
It should matter only during crisis, while the strong sponsor will make it easier to get loans, or subscribe to the rights placement. I do not see a crisis coming anytime soon. Also, although it’s loan repayment schedule is not as well spread out as Maple trust or Acsendas, neither is Sabana’s loans concentrated in a particular year. Its interest cost is mostly fixed too.
Well, weak sponsor did not turn out to be an issue here too.
2) Renewal of master leases.
3 out of the 5 master leases, did not have a built in positive rental revision clause built into it. I thought ......