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AIMS AMP Capital Industrial REIT: REIW 2010.

Wednesday, June 23, 2010

AIMS AMP Capital Industrial REIT made a presentation yesterday at the Real Estate Investment World 2010 at the Raffles City Convention Centre. Presenting itself to potential investors at the Convention was a very good idea.  Present at the Convention were pension funds and asset managers. I won't be surprised if they are looking to invest in high yielding S-REITs too. Link to the Convention's homepage here.

These were a few points made by the REIT's managers which I like very much:

1.  Asset recycling and asset management programmes:

– Divestments: (i) Japan property; and (ii) one or more of the smaller Singapore properties.
– Redeploy the net divestment proceeds into (i) debt repayment and / or (ii) acquisitions.
– Focus on positive leasing outcomes and enhance selected assets in the portfolio.

2.  Refinancing of the existing S$175 million debt facility with improved financing terms.


3.  Broaden and diversify the Trust’s funding sources.

4.  Target investment grade credit rating of Baa3 or above (current rating of Ba2) by maintaining strict financial discipline and investment grade metrics.

Why do I like these points in particular? These actions, if carried out singly or in sum, could strengthen the REIT's balance sheet, improve EPS, improve DPU, increase the REIT's resilience in the face of future economic slowdowns and attract institutional investors although these benefits might not all happen at the same time.

Based on the fundamentals, accumulating at 21.5c per unit for a 10% annualised yield is rather sound.  Based on near term technicals, 21.5c is resistance turned support.  However, the longer term technicals suggest that the REIT is still in a trading range between 20c to 23c. With momentum still somewhat lacklustre, its price is unlikely to make any big moves in the near term.

To view the complete presentation slides for Real Estate Investment World Asia 2010 Conference, click here.

Related post:
AIMS AMP Capital Industrial REIT: Big boys.

6 comments:

Drizzt said...

sounds good. not vested.

AK71 said...

Hi Drizzt,

I like the sound of it too. This REIT is one of my top three investments right now in the stock market. Wish me luck. :)

Anonymous said...

Ak71 i am new. check what is the faster way to learn stock...... btw did you attend any course as i last week attended a seminar still think wanna join. what are your advice on learning stock?

AK71 said...

Hi Anonymous,

You want to learn Fundamental Analysis and Technical Analysis. People call them FA and TA for short. You could take some courses, of course. However, I picked things up on my own. You might want to read the story here:

http://singaporeanstocksinvestor.blogspot.com/2010/02/excuse-me-are-you-investor.html

There are many books available (you could start by reading the books in the box on the top right hand side of this blog but ignore the "Rich Dad Poor Dad" book) and resources are also available online (for examples, Investopedia and the blogs in my list titled "Investors and Traders").

Of course, if you could find a good mentor, it would shorten the learning curve. I wish you all the best.

Could you leave your name or initials in your future comments? Thanks. :)

Anonymous said...

Hi AK,
Can't seem to find this blog you mentioned, "Investors and Traders". Which part of your blog is the link located? Lost heh

AK71 said...

Hi Anonymous,

You forgot to leave you name or initials again? ;)

"Investors & Traders" is the title of my blogroll. I have two sidebars on the right of my blog. It's somewhere down the middle of the inner bar. It's where you find links to some other local finance blog. Happy reading. :)

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