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AIMS AMP Capital Industrial REIT: Buy at 21c.

Tuesday, February 1, 2011

I am still in the queue to buy more of this REIT at 21c. With an annualised DPU of 2.04c, buying at 21c would give an attractive yield of 9.71%. Technically, 21c seems like a strong support as well, underpinned by the 200dMA.

I like to use the MFI as a measurement of demand and it is heartening to see that the uptrend is intact although attempts by the index to rise have been resisted several times at 50% since 21 Jan. An expansion in volume as price pushes higher would see the index move higher as well. When would this happen? Your guess is as good as mine. Bear in mind that the index could weaken to retest its trendline support as well and this could happen if volume or price weakens, or both.

Informed by FA, I would simply accumulate on weakness. This was something written by OCBC Research a couple of months ago:

The industrial sector typically lags the office sector by a few quarters. With the upbeat momentum in the office space, Industrial REITs stand to capitalise on the spillovers to business parks, high-tech and light industrial buildings. In terms of forward yields, Industrial REITs also trade at a premium of 70 basis points to the broader sector. We are bullish on the industrial sector recovery and now have an OVERWEIGHT rating for the Industrial REITs subsector. 

Related post:
AIMS AMP Capital Industrial REIT: 21c at XD.


Dividends Warrior said...

Hi AK,

I am also going for AIMS at $0.210 but till now still could not get it.

I might have to settle for $0.215

Happy Chinese New Year!

Cheers! ^^

AK71 said...

Hi DW,

21.5c is not a bad entry price. ;)

For me, as I already have a large position in this REIT, I am in no hurry to add. If the price comes down to 21c for me, it's a bonus. Otherwise, I am quite happy with my current position.

Looking forward to the divvy on 15 March. Huat ah! :D

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