Valuations of REIT properties — not yields — come under closer scrutiny amid fiasco involving Eagle Hospitality Trust and Covid-19 fallout.

Back in December 2016, Vibrant Group, the sponsor of Sabana Shariah Compliant Industrial REIT (Sabana REIT) attempted to sell a property with a master lease at above market rents into the REIT to get a higher valuation. Minority investors were quick to requisition an EGM to remove the manager.

While the minorities did not succeed in removing the manager, they managed to thwart the acquisition back in 2017. Three years on, the manager and sponsor are no longer around.

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