Higher rents to benefit industrial properties S-REITs.

In the last one month, I bought more units in industrial properties S-REITs.

1. I became an investor in Cambridge Industrial Trust again. Read blog post here.

2. I bought more units of AIMS AMP Capital Industrial REIT. See latest blog post here.

3. I became an investor in Cache Logistics Trust. Read blog post here.

4. I became an investor in Sabana REIT too. Read blog post here.

I believe that all these REITs are fundamentally strong and if we are investing for income, these could be very rewarding in the next two years. Distribution yields range from 8.15% for Cache Logistics Trust to 9.76% for AIMS AMP Capital Industrial REIT at current prices. Attractive? Quite.

DTZ Research said that rents for industrial space in Singapore are rising. Although average rent grew 3% quarter on quarter, current average rent is still 17.1% below the peak of 2008.


"DTZ added that industrial rents are anticipated to continue to increase. That is because the annual average potential supply of 7.5 million square feet between 2011 and 2013 is significantly lower than the historical 10-year average demand of 9.3 million square feet." CNA, 07 April 2011.


If we are trying to beat inflation and protect our wealth from shrinking, industrial properties S-REITs are definitely worth considering. I have felt this way for more than a year and I continue to believe in their fundamentals.

CapitaMalls Asia: Testing $1.88 resistance.

With a huge buy up at closing last evening, I took a chance that $1.83 resistance might break today. I raised my sell order to $1.87 instead, just one bid shy of resistance at $1.88 which I identified on 5 April. The sell order was filled today as price touched a high of $1.88 before closing the day at $1.86. Volume was very high today, almost quadrupling from the session before. So, will the price move higher tomorrow? It could.

There is reason to be optimistic if we believe that volume is the fuel that drives rallies and clearing the $1.83 resistance on such high volume and testing resistance at $1.88 on the same day is quite impressive. The MACD has been rising in positive territory, signalling the return of positive momentum. The MFI is yet to be overbought while the RSI is bordering on overbought. The OBV suggests strong accumulation. Immediate target in case of a breakout: $1.95 followed by $2.00.

Although a long upper shadow on today's white candle suggests some selling pressure closer to and at $1.88, selling has been well absorbed. In case of a sell down, $1.83 is the immediate support while $1.80 could provide a stronger support as that is where we find the 50dMA as well as the trendline support. Breaking $1.80 support would mean that the current uptrend has been compromised.

Related post:
CapitaMalls Asia: Testing $1.83 resistance.