First REIT: Partial divestment at 76.5c.

First REIT never did test 80c after it went CD. The highest it touched was 78.5c. This morning, after it went XD, its unit price declined to a low of 76c.

I made a decision to divest units which I accumulated at 76.5c and 77c earlier last month in January. I managed to sell at 76.5c as 77c could once again assert itself as the immediate resistance.

Overall, I still make a gain as I would collect a DPU of 1.93c payable on 29 February on these divested units. Therefore, it has turned out rather decently as a trade.

When would I again add to my remaining long position in the REIT? I see stronger supports at 75c and 74.5c. Could we see them tested in the next two months? Your guess is as good as mine.

Related post:
First REIT: FY2011 results.

Cambridge Industrial Trust: 4Q FY2011.

Unit price of Cambridge Industrial Trust has been creeping upwards, probably in anticipation of the Trust going CD.

Total assets under management exceed $1b with recent revaluation of properties. This resulted in a lower gearing level apart from boosting NTA/unit to 62c. Year on year, gearing ratio has fallen from 34.7% to 33.1%. The REIT has no borrowings due until June 2014.

Interest cover ratio: 5.0x
Average land lease remaining: 36 years.

DPU increased quarter on quarter from 1.082c to 1.118c, representing an increase of 3.33%. Annualised, the distribution yield at 50c per unit is 8.94%.

The REIT will go XD on 6 February and the income distribution is payable on 29 February.

See presentation slides: here.

On 14 October 2011, I said that Cambridge Industrial Trust could be worth another look. That view has not changed.

See blog post here:
Cambridge Industrial Trust: Worth another look.

Related post:
Cambridge Industrial Trust: Templeton and acquisition.

Sabana REIT: Target BUY prices.

A reader mentioned that Sabana REIT's unit price has weakened to 88c after going XD. A further weakening in price could be an opportunity to accumulate. I have the same thought. After all, I divested a small portion of my investment in the REIT at 90c and 91c as its unit price rose in the last couple of weeks.

Question: What would be my target buy prices? Prices? Yes, I see stronger supports at 87c, 86c, 85c and 84.5c. So, I could possibly accumulate at these prices if they should be tested for support.

In a recent blog post, I said that Sabana REIT could possibly see a higher DPU in the next quarter. So, accumulating on weakness could be a very rewarding exercise. See blog post: here.

I would also pay attention to the momentum oscillators to see if the REIT is oversold at any point in time. Good luck to all of us.

Related post:
Sabana REIT: Partial divestment at 91c.

Capitaland: Pushing higher on lower volume.

Capitaland's share price touched a high of $2.66 and closed at $2.65. Remember that I mentioned that in very bullish circumstances we could see $2.65 or even $2.75 tested? This is still valid.

I did a partial divestment at $2.65 today. If the following week should see price pushing higher, I would be happy to divest once more. $2.75? It could happen although I see the declining 200dMA now at $2.73. This could limit further appreciation in price. Although bulls could push past this resistance, it would surprise me (pleasantly) if price could close above the 200dMA. Why do I say this?

Look at the trading volume. It has been reducing. Indeed, volume is also lower this week as compared to last week. Volume is the fuel that drives rallies and reducing volume could be an early signal of coming weakness in price. Volume precedes price.

Momentum oscillators also signal that greater caution should be exercised. On the daily charts, the MFI has entered overbought territory while the Stochastics has been overbought for some time. It is riskier to go long at present despite the return of positive momentum as shown by a rising MACD in positive territory.

Long holders could consider selling while anyone thinking of buying could consider waiting for a pull back to supports.

Related post:
Capitaland: Partial divestment at $2.48.