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AIMS AMP Capital Industrial REIT: Sell down at 21.5c.

Friday, January 14, 2011

Someone asked me if I knew why there was heavy selling down of this REIT today. I do not have the answer. Checking the time and sale, 8,987 lots were sold down at 4.58pm, wiping out the entire buy queue. The OBV plunged yet again, indicating heavy distribution activity.


22c is, once again, resistance and immediate support is at 21.5c.

I will continue to accumulate at 21.5c and, perhaps, even 21c if the 200dMA should be tested as support. Fundamentally, buying more at 21.5c and 21c would give a handsome yield of 9.3 to 9.5%.


Related post:
AIMS AMP Capital Industrial REIT: 22c support.

16 comments:

Isaac said...

hi AK

This REIT was known as MacArthurcook REIT a few years back. what changed?

AK71 said...

Hi Isaac,

This was MacCook Industrial REIT (MI-REIT) up till sometime end 2009. Lots of history.

What has changed? Plenty and mostly positive. :)

Here is an early blog post of mine:

AIMS AMP Capital Industrial REIT (MI-REIT)

Isaac said...

thanks AK.

Next distribution will be in March, so looking to load up soon ;)

Anonymous said...

Hi AK,

Thank you for your prompt reply. More attractive now it seems. :)

Wee~

AK71 said...

Hi Isaac,

Hey, no problem. Glad to share. :)

With the sudden selling down on Friday, we have a nice window of opportunity to accumulate at a lower price now especially with the next distribution happening in March. Good luck. ;)

AK71 said...

Hi Wee,

I am curious too since I am vested in this REIT. So, no trouble. :)

For sure, it is more attractive now at 21.5c and I am looking forward to adding to my position. ;)

Isaac said...

hi AK

sorry to ask again, i can't seem to find this info on the AA reit website. what's the gearing level, NAV per unit for AA Reit?

AK71 said...

Hi Isaac,

You will find the information you need in the following blog posts:

AIMS AMP Capital Industrial REIT: 2Q FY2011

AIMS AMP Capital Industrial REIT: Revised DPU and fair value.

Good luck. :)

Happy Woof & JJ said...

Hi AK,

Agree, looks good to accumlate further if it goes lower.

BTW, can you share your view on
2nd Chance Properties?

Thanks,
CJ

AK71 said...

Hi CJ,

If this REIT should hit 21c support, I would break my piggy bank and start mopping up. ;-)

I commented about 2nd Chance once before early last year. My thoughts on the counter remain the same now:

2nd Chance

Anonymous said...

AK

http://singstocks.com/forum/showthread.php?1510-Top-120-Dividend-Stocks-In-Singapore&p=4364#post4364

Shows #5 IS AA-REITS, offering a dividend yield of almost 18% ! Wah..... I am unsure how this was derived ?

Imagine getting payback within 5.75yrs. If this is true, I too will break the bank, cash-in insurance policies + my camera collections + my HDB flat and cheong for it. . ^-^

PS: Usually stay with this chart for reference http://reitdata.com/

SnOOpy168

AK71 said...

Hi SnOOpy168,

I saw it and I am pretty sure the number is in error. ;)

I try to do my own research and not rely too much on secondary sources. Of course, I am just one person.

Anonymous said...

Hi AK,

I do noticed that the IPO of AIMS AMP Capital was at $1.20 and currently trading around $0.22.

Wondering what causes the purge of price after the IPO?

LT

AK71 said...

Hi LT,

That would be MI-REIT's IPO. MI-REIT made some overpriced acquisitions prior to the last recession. Its previous CEO, Chris Calvert, who is the current CEO of Cambridge Industrial Trust, also failed to put in much needed financing arrangement when a deal was sealed to purchase an industrial property which was being built. Of course, when the recession came and credit dried up, it became impossible to secure any financing.

George Wang et al came along to rescue the embattled MI-REIT but, of course, with a proposition which heavily diluted the NAV/unit of the REIT, ensuring its survival. The REIT was renamed AIMS AMP Capital Industrial REIT.

Personally, I believe that the current REIT still suffers from its history as MI-REIT even though it is immaterial now.

So, although the wounds are healed, the scars remain and that would take time to fade. Fortunately, I have no problem with scars. ;)

Anonymous said...

Hi AK,

So in other words, wherever Chris Calvert goes, try to avoid getting into that particular counter? hee hee.......!

Btw, how do you get the NAV and fair value of a particular counter?

LT

AK71 said...

Hi LT,

I liquidated my stake in Cambridge Industrial Trust sometime back and still blog about the Trust as and when Chris Calvert does something noteworthy. ;)

For example:
Cambridge Industrial Trust: Equity fund raising again.

The NAV/unit of a REIT is found in its quarterly reports. The fair value is more subjective.

What is fair to you? I think an 8% yield for AIMS AMP Capital Industrial REIT is fair and so arrived at 25c/unit as fair value for the REIT based on a DPU of 2c per year.

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