AIMS AMP Capital Industrial REIT: Buy ups continue.

Out of 2,642 lots which changed hands in the last session, 2,022 lots were bought up at 22.5c and 23c.

DTZ also said there has been a slight shift in investment prospects across sectors. Industrial properties, which have been buoyed by a strong recovery in exports, now offer more opportunities than retail. However, offices still remain the most attractive real-estate segment in Asia Pacific. Read article here.

Technically, the 20dMA has flattened while the longer term daily MAs continue to rise. The Bollinger bands have been narrowing. The RSI, a measure of buying momentum, has been forming higher lows. If I were to hazard a guess, we could see the price of this REIT going higher in the not too distant future. The immediate target I have remains at 26c. Support at 22c seems rather strong. If it should fail to hold, the rising 100dMA should provide a stronger support at 21.5c and you might see me going on a buying frenzy then.


Related post:
AIMS AMP Capital Industrial REIT and Singapore's 5.8%  growth in October exports.

Suntec REIT: OCBC retains BUY call.

On 27 October, I mentioned "It would be interesting to see what kind of financing structure would be decided upon. It is my assumption that Suntec REIT would issue rights to fund the purchase instead of having a share placement exercise if it is sincere about improving the distributions for unitholders. It could also gear up to 45% (on existing properties, excluding the proposed acquisition) and get about $600 million in loans which would reduce the size of any accompanying rights issue."

See circular to unitholders here.

It seems that there will not be any rights issue as the acquisition would be financed with the proceeds from a private placement of new units and a S$1,105.0 million debt facility. I generally do not like share placements as it does not allow minority unitholders to take part. However, if the new units are issued at a price close to the market price, it is not too big an issue. The acquisition is expected to increase Suntec REIT’s DPU marginally from 8.611c to 8.699c. So, I guess I won't have to do anything here.

OCBC published this today while maintaining its BUY call:
Debt facility secured at very competitive all-in cost of debt of 3.12%; timing, issue price of private placement equity portion dependent on market conditions.

Suntec REIT kept at Buy by OCBC; Best office proxy. Revises issue price assumption down to $1.30 per unit from $1.50, but fair value estimate slips only marginally to $1.63 from $1.64 due to lower-than-expected cost of debt.
Friday, 19 November 2010

© 2010 - The Edge Singapore

Related post:
Suntec REIT: MBFC.

Sabana REIT: IPO at $1.05/share.

Sabana REIT prices IPO at $1.05 per share: IFR. Based on the offer size of 605.8 million units, Sabana REIT will raise $636.1 million from the IPO.
Friday, 19 November 2010

© 2010 - The Edge Singapore

The retail tranche of the IPO, which starts later on Friday, will close on Nov 24 and the units will begin trading on Nov 26, IFR added. Sabana controls 15 industrial properties in Singapore with an aggregate floor area of about 3.3 million square feet.

The manager of the REIT had forecast in a draft prospectus a distribution yield of 8.45% for 2011 and 8.48% for 2012 based on the minimum offer price of $1.00.

Based on the IPO price of $1.05/share, distribution yield for 2011 would be about 8.05%. Still respectable. Good luck to all trying their luck for this IPO.

Marco Polo: Down channel.

On 25 October, I mentioned that a relative of mine bought into this counter because of a BUY call issued by Kim Eng. Well, the uptrend which is approximately defined by the rising 50dMA was broken a couple of days later. The counter tried to recapture the 50dMA but failed to do it successfully. It has been trading under the 100dMA which is at 43c in the last couple of sessions.

A down channel is quite obvious and the channel support could see the counter test 41c next. MACD is in negative territory and just completed a negative crossover with the signal line. Any upward movement in price could just be a rebound within the down channel, therefore.

The thin trading volume is probably a consolation to bulls but without any buy ups accompanied by meaningful volume, price could drift lower.

Related post:
Marco Polo: BUY call by Kim Eng.