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AIMS AMP Capital Industrial REIT is a fine investment for income.

Wednesday, March 29, 2017


30 & 32 Tuas West Road

This was a recent chat with a reader:

Reader:
http://www.commercialguru.com.sg/property-management-news/2016/9/136176/the-future-of-tuas
30 32 tuas west road and 8 10 tuas ave 20 are so close to the upcoming tuas west road MRT station!

AK:
Yes! I saw it for myself 🙂

Reader:
u took a look during your site visit?

AK:
During the tour they gave me 🙂

Reader:
haha. hard to get the shares cheaply though.

AK:
Now, too many people want in.
It is now a fair price

Today, the price is S$ 1.38 a unit.

In early September 2015, I had a chat with another reader who had reservations about investing in AIMS AMP Capital Industrial REIT (AA REIT) for income.

See the chat:
http://singaporeanstocksinvestor.blogspot.sg/2015/09/a-chit-chat-session-with-ak-on-reits.html

What was the unit price back then? $1.35 a unit.

How much income did AA REIT distribute from then to now?

23 Dec 15: 2.8c

23 Mar 16: 2.85c

22 Jun 16: 2.95c


22 Sep 16: 2.75c


22 Dec 16: 2.75c


23 Mar 17: 2.77c


Total DPU: 16.87c


Now, don't ask me how much have I received over the years. I am too lazy to find out.

Some ask me if this is a good time to invest in the REIT. Basically, they want to know if the REIT's unit price is going to fall in future. They don't want to buy and end up losing money.

I would tell them it depends on what they are after. 

If they want to invest in real estate for a constant stream of income, AA REIT is a good enough choice. 

If they are looking for capital appreciation, then, they might want to look elsewhere.

Related post:
AA REIT levels up.

10 comments:

L HL said...
This comment has been removed by the author.
AK71 said...

Hi AL,

I am only talking to myself in the blog.

I have absolutely no idea what Mr. Market is going to do. ;)

AK71 said...

Matthew Seah:
ah! I see declining DPU there

AK:
Ask why and ask if this is long lasting

ScOpIoN said...

Hi AK,

I want to check on the re-investment of the dividends by AAREIT. Do they offer it all the time or selective periods only? I've emailed them and have received no reply from them.

AK71 said...

Hi Scopion,

I have no idea if they will offer it every quarter.

To me, if it happens, it happens. ;)

Kevin said...

Hi AK,

Not forgetting what will happen to the demand for Tuas' industrial spaces when PSA starts operations at Tuas. :P

AK71 said...

Hi Kevin,

AA REIT for the win!

Should be AAA rated. ;p

redponza said...

Hi AK, may you share why the DPU dropped and if this is long lasting?
I am new to this counter, thanks.

AK71 said...

Hi redponza,

In a nutshell, there is an oversupply of industrial space and, of course, the economy has not been growing as much.

You might want to search for news on industrial REITs in Singapore. Of course, you might also want to read my past blog posts on AA REITs and other industrial REITs to get an idea. :)

AK71 said...

Standard & Poor’s (“S&P”) has reaffirmed its investment grade rating of ‘BBB-’ with a stable outlook.

The stable rating reflects S&P’s expectations that AA REIT will continue to generate steady cash flows with its portfolio of good quality assets, stable occupancy rates and well-staggered lease expiry profile.

S&P also believes that AA REIT’s strategy of continuously improving its asset quality through asset enhancement initiatives and redevelopments has allowed the REIT to better withstand the current soft industrial property market than some of its peers.

12 April 2017

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