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Second "e-book".

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First REIT: Quiet confidence.

Thursday, December 16, 2010

First REIT experienced much lower trading volume today. The frantic selling of nil-paid rights was noticeably absent today.


Well, today is the last day of trading for the nil-paid rights. Without the option of an arbitrage, investors interested in First REIT would only have the option of buying the mother units from now on. I expect this to return greater stability to First REIT's unit price which could turn buoyant in the near future.

Immediate support at 68.5c, as provided by the 100dMA.  Immediate resistance at 70c, as provided by the 50dMA.

Related post:
First REIT: A bullish harami.

6 comments:

isaac said...

Hi AK,

I was thinking of buying First REIT, at it's current price of 69c, the yield is 9.275%, which is higher than the rest of the REITS that I have.

What would you recommend me?

AK71 said...

Hi isaac,

Well, if you are happy with 9.275% yield, why not? :)

isaac said...

Oh, because I'm not sure what people mean about "management quality" when they mention the sponsors. For example, I've read on bulletin boards that FreightLinks' isn't a vert good sponsor. haha.

anyway, enjoy reading your blog. not too technical, and very readable. :)

Would you consider a link exchange?

AK71 said...

Hi isaac,

The management of First REIT has delivered in good times and bad. I think they are pretty competent. :)

First REIT: This one is for keeps.

I popped by your blog to take a look. Our blog addresses are very similar. ;)

For a while now, I make it a point to only exchange links with blogs which have been updated regularly (at least weekly) for 6 months running. This demonstrates that the blogger has staying power and that the blog is not a flash in the pan, so to speak.

So, if you stay regular in your blogging efforts, please contact me again sometime in April 2011 for a link exchange. I would be pleased to hear from you again on the topic. :)

isaac said...

okay then. thanks! I'll probably KIV First REIT then. anyway, is yield your number 1 priority when sourcing a REIT for investment? If not, what is? and why?

Also, in Singapore, is there dividend reinvestment for REITS? Like e.g. if ABC REIT gives me $100 dividend and 1 share cost $1, they will auto reinvest my dividend to an extra 100 shares?

sorry, I'm pretty new to the investment sector. :)

AK71 said...

Hi isaac,

There are many things to consider before investing in a REIT. Here is a blog post to start you off:

High yields: Successes, failures and the in betweens.

Yes, there are dividend re-investment plans for REITs and one that comes to mind is Cambridge Industrial Trust but it is one REIT I do not like. You asked about quality of management earlier? ;)

Cambridge Industrial Trust: Fails to deliver.

We invest in REITs for income and so, I would take the income distributions. I don't believe in dividend reinvestment for REITs. I will buy more when the time is right and not when I am supposed to receive income from them.

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