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Sabana REIT and AIMS AMP Capital Industrial REIT: Releasing quarterly results on 20 January 2012.

Saturday, January 14, 2012

Both Sabana REIT and AIMS AMP Capital Industrial REIT will be releasing quarterly financial results on 20 January 2012.

Sabana REIT: see announcement here.

AIMS AMP Capital Industrial REIT: see announcement here.



Sabana REIT has completed a few acquisitions in the last quarter. However, I think their contributions to distributable income will be more substantial in the current quarter. This is because the acquisitions where completed in November and December and not at the beginning of the last quarter.

On 22 November, acquisitions of the following were completed:

1. 3A Joo Koon Circle
2. 2 Toh Tuck Link
3. 21 Joo Koon Crescent

See announcement here.

On 7 December, the acquisition of 39 Ubi Road 1 was completed. Read announcement here.

On 15 December, the acquisition of 6 Woodlands Loop was completed. Read announcement here.

All acquisitions were funded by debt and would contribute to a higher DPU. Conservatively, I am expecting a DPU of 2.2c or a bit more to be announced on 20 Jan.

We could see a higher DPU in the next quarter when full quarter contributions from the aforesaid completed acquisitions weigh in.



As for AIMS AMP Capital Industrial REIT, redevelopment of 20 Gul Way is ongoing and seems to be progressing nicely. Higher income due to this redevelopment will materialise only in 1Q 2013. I blogged about it before. See it here and how I bought more units at 93.5c.

It would be nice to have a repeat of 2.5c DPU when results are released on 20 Jan although I would not be surprised if DPU dips a bit due to possible loss of rental income from the redevelopment of 20 Gul Way. I mentioned it last year in a blog post as well: here.

Unit prices of both Sabana REIT and AIMS AMP Capital Industrial REIT have been creeping up. Their unit prices closed at 90c and 97.5c respectively in the last session. With the estimates I have made, this would mean annualised distribution yields of roughly 9.78% and 10.26% respectively.

Good luck to all unit holders.

18 comments:

Ray said...

Yes, good luck to us all!! Huat ah :)

WL said...

Hi AK,

Thanks for doing the leg work and save many the trouble of doing the research.

Deeply appreciate your efforts. :)

AK71 said...

Hi Ray,

If the REITs deliver the DPUs I have in mind, I would be very happy. :)

AK71 said...

Hi WL,

You are welcome. :)

I would appreciate some finger work from readers to visit some of my sponsors here in my blog to reward my efforts. ;p

SnOOpy168 said...

It will be a nice Ang Pow for all of us. ^-^

Huat ah everyone.

AK71 said...

Hi SnOOpy168,

The Ang Pow will be a bit late since the income distributions will likely be payable in February or March. Well, better late than never. Haha.. Gong Xi Fa Cai! :)

SnOOpy168 said...

AK. This time lag in payment date, I am getting used to it. Better than not paid or irregular or semi/annual payments.

From last year's payout chart, i am seeing pockets of $0 dividends month. That is OK lah.

AK71 said...

Hi SnOOpy168,

Yes, we don't see any income distributions from S-REITs in January, April, July and October. So, if we rely on passive income from S-REITs for living expenses, we must take this into account. Otherwise, we could end up eating grass 4 months a year. Haha.. ;p

INVS 2.0 said...

Hi Ak71,

My turn to enter Sabana. Bought some at $0.890 but only partially fulfilled. Hope it's not too expensive. :)

AK71 said...

Hi INVS 2.0,

Fundamentally, I believe 89c to be a fairly good price. Technically, however, it could be closer to the upper end of the range for now.

If you are investing for income and are happy with the yield at 89c, there is little to worry about. :)

INVS 2.0 said...

Hi Ak71,

Admittedly, I didn't look at the graph when making the purchase. I just realised it is in the upper range of the 20wk bollinger. Should buy at $0.86 and below. Well, luckily it's just partially fulfilled with a very small amount of shares. :)

Anonymous said...

Hi, my comments was not posted.. here's it again..

Could anyone comment on the negative cash flow and earnings yield of AIMs?

http://www.investmentmoats.com/DividendScreener/DividendScreener.php

JCK said...

After distribution of dividends, will a REIT correct in stock pricing?

AK71 said...

Hi INVS 2.0,

There are people who would tell us that thinly traded counters are not amenable to TA. So, it is not difficult to understand why you did not look at the charts in this case. :)

Personally, I managed to sell a small position at 90c. These units were bought at 86.5c in early December 2011. This is consistent with my view that if we can make money trading S-REITs, why not? They are not just good investments for income. ;)

AK71 said...

Hi Anonymous,

You might want to post that question in Drizzt's blog as to how he arrived at the numbers.

Blogger has a SPAM filter and your original comment could have been filtered.

Finally, could you include your name or initials in future comments? Thanks. :)

AK71 said...

Hi JCK,

It could happen but it might not happen. ;)

Hwang said...

Sabana's below your expectation. 2.17 cents only.

AK71 said...

Hi Hwang,

Yup and I just blogged about it. You are keeping me on my toes. ;)

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