Cache Logistics Trust: Still on my watchlist.

I hardly talk about Cache Logistics Trust but regular readers would know that this is on my watchlist. With an annualised DPU of 7.76c, at today's closing price of 94c, the distribution yield would be 8.26%. Still not attractive enough for me but I recognise its strong numbers which would convince me to start a small long position if price would decline to test its historical low of 91.5c for a yield of 8.48%.

Here are the numbers as at 30 Sep 10:
Gearing: 23.4%.
NAV/unit: 88c.
Interest cover: 9.2x.
Portfolio 100% leased.
WALE: 5.8 years.

Substantial institutional shareholders:
JPMorgan Chase   9%
Morgan Stanley     7%
The Capital Group 6%
Amundi                 7%

How likely is it for the Trust to retest 91.5c? Since 22 Sep, the OBV has been in decline, though bumpy. This suggests that there is gradual distribution going on. The MACD has also been on a decline. Volume is, however, very thin. Price could be quite volatile.

Anyway, if I get some units here, it is a move to diversify my portfolio but it is not absolutely necessary. If the price does not decline to the level I feel comfortable with, I would give it a miss.

See 3Q 2010 slides here.

Related post:
Cache Logistics Trust: Low gearing.

First REIT: Quiet confidence.

First REIT experienced much lower trading volume today. The frantic selling of nil-paid rights was noticeably absent today.

Well, today is the last day of trading for the nil-paid rights. Without the option of an arbitrage, investors interested in First REIT would only have the option of buying the mother units from now on. I expect this to return greater stability to First REIT's unit price which could turn buoyant in the near future.

Immediate support at 68.5c, as provided by the 100dMA.  Immediate resistance at 70c, as provided by the 50dMA.

Related post:
First REIT: A bullish harami.