Sabana REIT: DPU of 3.04c.

While chatting with some friends, I mentioned that I expect a maiden DPU of no less than 2.8c for Sabana REIT. I also said that I could be wrong and the DPU could be higher. I am happy to be wrong and a DPU of 3.04c was announced. The REIT will go XD on 10 May and the income distribution will be made on 16 June.

Some important numbers:

NAV/unit: 98c.
Gearing: 24.9%
Interest cover ratio: 7.9x

See presentation slides here.

Not too long ago, I initiated a long position in Sabana REIT very close to its low and, similar, to my investment in Cache Logistics Trust, I would not be averse to some profit taking if its unit price were to rise meaningfully in the near future.

Immediate resistance is provided by the declining 50dMA at 94.5c. This is more likely than not to give way and the next resistance level is at 96c which is where we find the 100dMA as well as the 138.2% Fibo line, the first of three golden ratios. I am hopeful that we could see 98c tested as per my previous blog post on this REIT.

Related post:
Sabana REIT: Turning positive.

Sabana REIT announces distributable income of $19.3m for Nov 26-Mar 31
Wednesday, 27 April 2011

© 2011 - The Edge Singapore

Cache Logistics Trust: Reverse head and shoulders.

I am rather excited by the price action of Cache Logistics Trust today. Price formed a wickless white candle as it closed at 96c, the neckline of the potential reverse head and shoulders pattern I mentioned in earlier blog posts. It remains to be seen if this resistance could be overcome. 96c is also where we find the 200dEMA.

If resistance at 96c were taken out, using Fibo lines, I see more significant resistance provided by the golden ratios at 98c (138.2%), 98.5c (150%) and 99c (161.8%). I initiated a long position in this trust at its lowest not long ago and added to my position shortly after. So, if the resistance levels identified should be tested, I would not be averse to some profit taking. Locking in some nice gains? Sure, why not?

Related post:
Cache Logistics Trust: 1Q FY2011 results.