AIMS AMP Capital Industrial REIT: Bumper distribution 3.14c.

AIMS AMP Capital Industrial REIT was trading at $1.74 per unit this morning. Nice. The REIT will be distributing 3.14c per unit on 18 June 2013.

This is the income distribution for the period of 1 January to 31 March 2013.

For a more accurate estimate of regular quarterly distributions, we have to remove 0.3c which is from the capital gains that comes from divesting 31 Admiralty Road. We also have to remove 0.09c which is what is left of distributable income in the preceding 9 months. The REIT typically pays out all residual distributable income in the final quarter.

So, this gives us 2.75c a quarter and a more regular annualised DPU of 11c. At $1.74, the distribution yield is 6.32%. This is not very high but obviously attractive enough for Mr. Market, especially when compared to some industrial S-REITs which do not even offer a 5% distribution yield.

20 Gul Way (Phase 1) has begun contributing to the REIT's income. The contribution is better than expected. 20 Gul Way (Phase 2) will begin contributing to the REIT's income in 2H 2013. Then, there is also the redevelopment of the property on Defu Lane.

With many more properties with plot ratios to be maximised, there could be many more catalysts for re-rating the REIT in future. The management have, after all, proven themselves competent in the redevelopment department.

They have also renewed another 16 leases with a weighted average rental increase of 18%. This will have a positive effect on future DPU.

Expecting further boosts to the REIT's income is probably the reason why Mr. Market is willing to pay more for the REIT.

Related post:
AIMS AMP Capital Industrial REIT: 3Q FY2013 DPU 2.58c.

Wilmar: Bought at $3.28.

I bought shares of Wilmar's towards the end of the day at $3.28 a share as I observed what I thought to be weaker selling pressure on the part of Mr. Market. There seems to be a reluctance to sell at lower prices and we see hints of this in the chart.

We see the MACD higher as share price made a lower low.

This suggests that negative momentum has weakened. The CMF, a momentum oscillator that measures money flow, is also encouraging as it has moved into positive territory.

The candlestick formed today resembles a hammer and this is a bullish reversal signal. Of course, it needs confirmation in the next session.

In case of a continuing decline in share price, I see the next support level at $3.23.