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First REIT's results are more or less in line with forecast with a DPU of 1.58c for 2Q 2011. The REIT will go XD on 28 July and income distribution is payable to unitholders on 29 August.
The REIT's strong numbers have been mentioned before and here's the update:
NAV/unit: 78c
Interest cover ratio: 15x
Gearing: 13.8%
I am pleasantly surprised that its management is planning to have a special non-recurring dividend to be paid from its divestment gain resulting from the sale of its Adam Road property. This could translate into an additional one off DPU of more than 1c in future.
Low gearing, high interest cover ratio and a distribution yield of almost 8% with a special dividend to boot. This REIT is rock solid and remains one of my best investments in years.
One of my best investments it might be but it would not pay to fall in love with it. Even great investments would not see share prices go up in a straight line. They climb a wall of worries. However, today's white candle was formed on the back of very high volume and we could see price pushing even higher in the next session. 85c next? Possibly.
Weekly
Daily
With price pushing beyond the upper Bollinger band, a pull back to supports would be a natural course. When? I would suspect it could happen when the counter goes XD. Immediate support at 80c? Or perhaps 79c? That's where the Fibo lines are on the daily chart.
Good luck to fellow unitholders.
See announcement here.
See presentation slides here.
Related post:
First REIT: Yield accretive purchase in South Korea.
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