PRIVACY POLICY

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Friday, March 16, 2012

AIMS AMP Capital Industrial REIT: How much higher?

People are waking up to the stronger numbers as well as the attractive and potentially growing income streams of AIMS AMP Capital Industrial REIT.


It is interesting also to note that some analysts are reporting that the REIT has not one but two strong sponsors. In the distant past, few would even talk about the REIT in a positive light, much less the sponsors. This shows how durable the negativities created by the recapitalisation of the former MI-REIT were.

Personally, on hindsight, I am thankful for the negativities which made people avoid the REIT as it allowed me to accumulate more units of the REIT at prices way below its fair value.



The REIT is currently my second largest investment and is an important passive income generator for me. Keeping the status quo, it is expected to generate some 32% of my total passive income from S-REITs alone this year. Will I keep the status quo?

My current investment in the REIT forms part of my core investment for passive income. It is not for trading. Unless its unit price rises significantly, I am likely to keep the status quo.

Although fundamentally attractive, we can only wait and see how much higher Mr. Market is willing to pay for the REIT's units. $1.10 is the resistance to watch. Overcoming this convincingly could see $1.125 and $1.15 tested next.

Related post:
AIMS AMP Capital Industrial REIT: 3Q FY 2012.
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32 comments:

  1. 钢铁侠March 16, 2012 at 6:10 PM

    Hi AK

    Agreed, there is nothing wrong to take profit. For myself, I will keep it since I have planned it as part of passive income ....

    Too bad it went up so fast that resulted our cost of owning it also becomes higher  

    Gregg

    ReplyDelete
  2. AK71March 16, 2012 at 6:28 PM

    Hi Gregg,

    Yup, nothing wrong with taking profit. Just don't suffer from seller's remorse. ;)

    Anyway, I believe there would be a time to divest and the time would be when its unit price goes through the roof. :)

    ReplyDelete
  3. 钢铁侠March 16, 2012 at 10:28 PM

    Hi AK,

    I supposed to post this comment @ First REIT ...probably I click wrongly ...pahseh pahseh.. (Not vested in AIMPS)

    ReplyDelete
  4. RayMarch 16, 2012 at 10:48 PM

    always suffering from seller's remorse... :(

    ReplyDelete
  5. AK71March 16, 2012 at 10:48 PM

    Hi Gregg,

    Ah, so des ne. :)

    First REIT's long white candle on the back of very high volume today was eye popping.

    Indeed, the cost of holding on is getting higher. However, can we put the money to better use? I wonder.

    ReplyDelete
  6. 钢铁侠March 16, 2012 at 10:58 PM

    Hi AK,

    From the technical analysis point of view, what will be the next resistance price?

    I am still wondering what is rational behind for the surging price. The only catalyst that i observed maybe was came from OCBC analysis report that released few days ago.

    On 2 Jan 2012, I did send an email to PT Lippo Karawacci asking what is the progress of injecting Jambi or Balipapan into First REIT? They only reply me "they are planning for these transactions"..and no timeline was given.. (expected for such official reply.... LOL)....

    Gregg

    ReplyDelete
  7. JCKMarch 16, 2012 at 11:39 PM

    Bought a bunch few weeks ago at $1.06....didnt expect it to move this fast!

    ReplyDelete
  8. AK71March 16, 2012 at 11:53 PM

    Hi Ray,

    You made money from your earlier sale, right? Nothing to be remorseful about. ;)

    ReplyDelete
  9. AK71March 16, 2012 at 11:59 PM

    Hi Greg,

    Well, technically, a round number like 90c is likely to present some resistance.

    Otherwise, it is unchartered territories from here if we look at the charts which have been adjusted for rights issues.

    I feel that a pulling back to support is not unrealistic. In fact, I think it might happen next week.

    ReplyDelete
  10. AK71March 17, 2012 at 12:00 AM

    Hi JCK,

    Congratulations! Great timing. :)

    ReplyDelete
  11. JCKMarch 17, 2012 at 12:07 AM

    Bought a bunch of Sabana at $0.93 as well. :)

    ReplyDelete
  12. AK71March 17, 2012 at 12:10 AM

    Hi JCK,

    You are on a roll! :)

    ReplyDelete
  13. JCKMarch 17, 2012 at 12:12 AM

    I am in a hurry! :)

    ReplyDelete
  14. AK71March 17, 2012 at 12:18 AM

    Hi JCK,

    That's an intriguing reason. Why are you in a hurry?

    ReplyDelete
  15. JCKMarch 17, 2012 at 7:41 AM

    As i mentioned before

    My investment portfolio is pretty lopsided to gold and gold related products.like some 70%...unhealthy.

    After liquidating i gotta find some home for the cash plus more cashflow coming in......... :)

    Thinking 8 to 9% returns aint too bad here..........not even looking for capital appreciation yet

    ReplyDelete
  16. AK71March 17, 2012 at 7:50 AM

    Hi JCK,

    Ah, yes, I remember now. Thanks for jogging my memory. :)

    ReplyDelete
  17. JCKMarch 17, 2012 at 7:52 AM

    AK

    Thanks to your very insightful and details of the going-ons in these REITs, i am able to make some investment decisions on these REITs

    ReplyDelete
  18. AK71March 17, 2012 at 7:53 AM

    Hi JCK,

    You are welcome. I am glad you have found the blog posts useful. :)

    ReplyDelete
  19. INVS 2.0March 17, 2012 at 10:25 AM

    Hi Ak71,

    I have divested Starhill on the rally. Now my only sole counter is AIMS. I still keep a few lots for passive income even though I can sell them now and lock in profits. :)

    I am waiting for it to crash down some time in the future, so that I can move it and sweep it under my carpet as passive income. :)

    ReplyDelete
  20. Dividend Tech WarriorMarch 17, 2012 at 10:43 AM

    Hi AK,

    Just popping in to say a big "Thank You".

    I decided to invest in AIMS and First REIT after reading your posts last year.

    I have been reaping the benefits since. :)

    ReplyDelete
  21. AK71March 17, 2012 at 11:05 AM

    Hi INVS 2.0,

    Sounds like you have a plan. Can't go wrong with a plan like yours. ;)

    ReplyDelete
  22. AK71March 17, 2012 at 11:09 AM

    Hi DW,

    You are welcome. I am glad you have made money from your investments in AIMS AMP Capital Industrial REIT and First REIT.

    If you decide to hold on to your investments, I am sure they will continue to generate meaningful passive income for you.

    If you decide to lock in gains, the returns are very attractive too. Congratulations. :)

    ReplyDelete
  23. INVS 2.0March 20, 2012 at 4:49 PM

    Hi Ak71,

    Seems like $1.10 is a strong resistance. It can hardly make a breakthrough.

    ReplyDelete
  24. AK71March 20, 2012 at 5:28 PM

    Hi INVS 2.0,

    Are you concerned? ;)

    ReplyDelete
  25. INVS 2.0March 20, 2012 at 5:38 PM

    Hi Ak71,

    Yes, I am concerned. Anything above $1.10 means that I can lock in profits for the pioneer lots that I bought last year. :) Of course it is not meant for trading as they are primarily passive income. :)

    But I still hope for a fall so that I can buy more. :)

    ReplyDelete
  26. AK71March 20, 2012 at 6:24 PM

    Hi INVS 2.0,

    Ah, so des ne. :)

    Well, like you said, if it happens, good. If it does not, good too. You win either way. ;)

    ReplyDelete
  27. meesiamApril 5, 2012 at 12:06 AM

    AK

    Any comments to the spike these days? Highest today is 1.165, anymore upside?

    ReplyDelete
  28. AK71April 5, 2012 at 11:54 AM

    Hi meesiam,

    Anymore upside? Only Mr. Market has the answer. ;)

    I feel that the fair value of AIMS AMP Capital Industrial REIT is closer to $1.25 when its distribution yield would approximate 8%. Still some way to go. ;)

    ReplyDelete
  29. SnOOpy168April 5, 2012 at 6:03 PM

    AK

    Besides our old friend, AIMS, First & Sabana. Are there anymore of 9 - 11% p.a. sustainable dividend yield counters that are worth looking at
    ? Something with below NAV $ and good free cash flows. Not necessary have to be REITs.

    Cheers & have a good holiday.

    ReplyDelete
  30. AK71April 6, 2012 at 8:47 AM

    Hi SnOOpy168,

    If I find something, you can be sure I would blog about it. :)

    Happy Good Friday!

    ReplyDelete
  31. UnknownMay 8, 2012 at 1:07 PM

    Hi
    I am old ,and i have got some 350k to 400k, but i am scare to invest in reit.

    Would you be nice enough to help me. I know i have to be responsible for my investment and will not blame other.

    I need passive income, because very soon my retirement money will be gone, if i dont put them to generate an income for me.
    Should i disversify across all the reits, or can you please help me out as to which one are better abd secure.

    My e-mail is victortancheongwee@yahoo.com.sg

    thanks for your website, it is very good guide.

    victor

    ReplyDelete
  32. AK71May 8, 2012 at 3:24 PM

    Hi Victor,

    I will reply to your comment here instead of emailing you so that other readers will know what I think too.

    Always know your motivations. Why are you investing in the stock market? What do you hope to achieve? Once you are clear on what you want, you would know if an investment is suitable for you.

    In your instance, you are interested in a regular income from your investments. Are REITs suitable for you then?

    REITs have regular cash flow from rental payments and they are required to pay out 90% of distributable income to unit holders. The payouts could happen quarterly or half yearly.

    If you are a Singaporean residing in Singapore, such income distributions are also non-taxable.

    Should you invest in S-REITs? You have to answer that yourself. ;)

    ReplyDelete