AIMS AMP Capital Industrial REIT: Bought more at 20c.

Back from hot yoga. I think the heat is somewhat challenging. I should try yoga without the "hot" next.  Anyway, time to catch up on my blogging.

Apart from Cache Logistics Trust, I bought some units of AIMS AMP Capital Industrial REIT today at 20c/unit.

Fundamentally, at 20c/unit and a DPU of 2c per annum, I am getting a 10% distribution yield. The manager also released some re-assuring news yesterday:

1. There appears to be no structural damage to the Asahi Ohmiya Warehouse located in Tokyo, Japan, which is located approximately 345 km from the epicenter of the earthquake which struck Japan on Friday 11 March 2011.

2. A sale and purchase agreement was struck on on 21 February 2011 for the sale of the property for a consideration of JPY1.49 billion. Completion of the sale of the Property was originally scheduled to take place today.

3. The Purchaser has no right to rescind the Sale and Purchase Agreement and the completion of the sale of the Property will be rescheduled to the first practicable date following completion of the investigation and any required repairs.
Read announcement here.

This, I believe, is good news as the sale of its Japanese property is something the REIT has been working towards. The apparently good condition of the property after the quake would also mean that the REIT would  not be incurring any hefty repair costs.

Technically, we could see price going lower as the selling down at 19.5c today was quite strong with 6,599 lots sold down at that price. 19c? Possible. Maybe even 18.5c. So, why don't I wait? Well, can we tell for sure if it would go that much lower? I can't. So, I buy some now. In fact, forming a doji today tells a story in which bulls were quite strong at the closing too.

I would also pay attention to the MACD and whether it could form a higher low as price forms a lower low. That would be a positive divergence and could indicate a short term trading opportunity. I have put in a buy queue at 19.5c for tomorrow.

Something on Cambridge Industrial Trust:

Cambridge Industrial Trust rated 'buy' by DMG. Stock trades at 10% FY2011 yield, attractive relative to its peer average of 7.3% and its pre-crisis yield of 6.7%. DDM-based target price of 61 cents. MAINTAIN BUY.
Tuesday, 15 March 2011

© 2011 - The Edge Singapore

Cache Logistics Trust: Initiated long position at 91.5c.

"I said in an earlier blog post that I am willing to pay a small premium above NAV which is acceptable for a lower risk investment. So, if a retest of the low of May 2010 at 91.5c were to happen, I could buy some units." This was what I said in my blog on 8 March, a few days before the terrible disaster hit Japan. Today, I bought some units of CLT at 91.5c.

With the acquisitions the manager announced yesterday, this REIT is looking more attractive as its gearing level remains under 30% while its DPU could bump up by a few percentage points. Could its unit price weaken further? It could as its downtrend is technically very much intact.

Well, 91.5c/unit was my target entry price and, I dare say, is a fairly good one with a smallish 3.98% premium to NAV/unit which is at 88c. I have gotten my foot in the door, so to speak.

I have a few more blog posts which I would like to put up this evening but it really depends on my condition later on. My second hot yoga session is in less than an hour!

Related post:
Cache Logistics Trust: Why not buy at 94.5c?
Cache Logistics Trust: Acquisitions.

Cache Logistics Trust rated 'buy' by OCBC. Initiate buy on CLT with a fair value of $1.03 largely on valuation grounds.
Tuesday, 15 March 2011

© 2011 - The Edge Singapore