AIMS AMP Capital Industrial REIT: Higher DPU and 20 Gul Way.

AIMS AMP Capital Industrial REIT has once again delivered results which are above expectations. I was expecting a quarterly DPU of 0.5c but, instead, 0.53c has been declared. XD: 2 August. Payable on 14 September.

What's more? This is only 96.8% of total amount for distribution, not 100%. Annualised, it would be 2.12c which means a distribution yield 9.64% at the unit price of 22c/unit.

Gearing level has decreased to 30.4%.

Interest cover ratio has increased to 6.4x. It was 5.0x before.

NAV/unit is at 26.8c. So, the REIT is still trading at a significant discount to NAV.

It has been said before that many of the REIT's properties have great potential for redevelopment or Asset Enhancements as many of its properties have not maxed out their plot ratios. Unitholders have been waiting for this and today, the management announced that it will be redeveloping the property on 20 Gul Way.

20 Gul Way, currently with total gross floor area of 378,064 sq feet will become a five storey ramp up warehouse facility with total gross floor area of 1,159,536 sq feet! The total value of assets under management for the REIT will cross $1b upon completion of works in two phases!

Upon completion of both phases, everything else remaining equal, we are likely to see an increase in DPU per year by 0.293c if the redevelopment were to be funded 100% by debt. However, we must remember that it will take years to complete redevelopment work.

Phase 1 is estimated to take 15 months to complete while Phase 2 is estimated to take another 13 months to complete. The whole redevelopment is estimated to be completed in 2013 and is definitely a step in the right direction.

See 1Q FY2012 results here.
See announcement on 20 Gul Way here.

Noble Group: Another quick trade.

Technical analysis (TA) is dynamic. Day to day, charts have new information and TA will provide new insights.

Not too long ago, I wondered if Noble Group's share price might hit $1.90. Read blog post here.




If you guess that I must have been waiting to sell at $1.90, you are right.

However, doing a bit of charting last night revealed that we might not see $1.90 although there is still a chance we could.

The declining 20dMA is now at $1.89 while trading volume has dwindled lately.

Today, it hit a high of $1.875 before closing at $1.865, forming a white spinning top (almost) in the process.

There is obviously some struggle between bulls and bears at this level.





Half an hour before the market closed, seeing how $1.875 presented a respectable resistance and is only three bids from $1.89, I decided to divest at $1.87, selling straight instead of queueing at $1.875.

That is 4 bids below $1.89 but it gives me a gross gain of 5% in less than a fortnight.

It seems that I have made another quick trade after the recent one with NOL.

Conditions are not easy for long traders in recent months.






Counter trend trading demands that I stay nimble footed and less greedy.

A 5% gain here and there? Why not?

I am still learning.

Golden Agriculture: 200wMA cleared.

Golden Agriculture closed above the 200wMA in the last session. Cleared of this hurdle, we could see its share price going higher from here.

It is interesting to observe that the 50wMA has been crucial as support, seeing how share price bounced off the line each time it was tested in the past.

It would not be unrealistic to expect any retest of the 50wMA to see strong buying interest.

Related post:
Golden Agriculture: 68c support.

First REIT: 2Q 2011 results.

First REIT's results are more or less in line with forecast with a DPU of 1.58c for 2Q 2011. The REIT will go XD on 28 July and income distribution is payable to unitholders on 29 August.

The REIT's strong numbers have been mentioned before and here's the update:

NAV/unit: 78c
Interest cover ratio: 15x
Gearing: 13.8%

I am pleasantly surprised that its management is planning to have a special non-recurring dividend to be paid from its divestment gain resulting from the sale of its Adam Road property. This could translate into an additional one off DPU of more than 1c in future.

Low gearing, high interest cover ratio and a distribution yield of almost 8% with a special dividend to boot. This REIT is rock solid and remains one of my best investments in years.

One of my best investments it might be but it would not pay to fall in love with it. Even great investments would not see share prices go up in a straight line. They climb a wall of worries. However, today's white candle was formed on the back of very high volume and we could see price pushing even higher in the next session. 85c next? Possibly.

Weekly

Daily

With price pushing beyond the upper Bollinger band, a pull back to supports would be a natural course. When? I would suspect it could happen when the counter goes XD. Immediate support at 80c? Or perhaps 79c? That's where the Fibo lines are on the daily chart.

Good luck to fellow unitholders.

See announcement here.
See presentation slides here.

Related post:
First REIT: Yield accretive purchase in South Korea.

Cambridge Industrial Trust: 2Q 2011 results.

The last time I blogged about this REIT was on 28 April and I was so negative about it that some readers divested their shares in the REIT straightaway. Read blog post here.

Now, I have to say this again that my blog is purely to share my thoughts, a place where I think aloud, so to speak. It is not to exhort anyone to buy or sell anything.

In a reply to a reader, OT, I mentioned that I would wait to see if I could divest my investment at 52c just to close a chapter (again). Even with mediocre investments, there could be a better time to sell.

Fundamentally, with a 2Q DPU of 1.036c, it translates to an annualised distribution yield of just 7.97% at the unit price of 52c.

Gearing at 32.7% and interest cover ratio at 5x are similar to AIMS AMP Capital Industrial REIT's.

The difference? AIMS AMP Capital Industrial REIT has an estimated distribution yield of 9.09% at the unit price of 22c. Money should go to where it is treated best.

Technically, the resistance as provided by the 200dMA at 51.5c was taken out convincingly today as price closed at 52c, forming a long white candle in the process.

A breakout? It seems to be the case and we could see price test 53c in the near future. I have entered my sell order.

See presentation slides here.

CapitaMalls Asia: Interim dividend declared.

Today, during lunch hour, when I read that the management is declaring an interim dividend of 1.5c per share (XD on 31 August and payable on 16 September), I immediately put in a buy order. I feel that it is a generous payout for a growth company and testament to the fact that it is doing well.

2Q 2011 EPS: 4.2c
1H 2011 EPS: 5.5c
NTA per share: $1.52

See presentation slides here.

Its share price closed at $1.45 today. This is at support. We shall have to wait and see if it would go higher from here. I see gap resistance at $1.55 and if it were to be overcome, we could see $1.64 next. Will my purchase today be rewarding? I wonder.

CapitaMalls to ‘latch on’ to China to secure growth prospects
Thursday, 21 July 2011

© 2011 - The Edge Singapore

CapitaMalls Asia Q2 net profit doubles on revaluation gains
Thursday, 21 July 2011

© 2011 - The Edge Singapore

NOL: A quick trade.

On 12 July, NOL formed a white candle and I mentioned that I was wary of its reliability as it was formed on relatively low volume. I also used Fibo lines to determine where stronger supports could be found. Then, I added to my long position at these supports. See blog post here.

On 19 July, NOL formed a white hammer and I wondered if price could rise to test $1.45. See blog post here.

For the last three days, I have been in the queue to sell at $1.45. Today, it was done.

With price closing at $1.42, will it be going lower from here? I am not so sure because I see a higher low on the MACD. A positive divergence has formed, it would seem. If $1.45 were to be taken out convincingly, we could see price going higher to $1.56.

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