Sabana REIT: Acquiring 21 Joo Koon Crescent.

Sabana REIT is recently on an acquisition spree. Today, it announced the proposed acquisition of 21 Joo Koon Crescent. With this latest acquisition which will be funded fully by debt, its gearing level will bump up to 35%.

Property: 21 Joo Koon Crescent.
Consideration: S$20.274m.
Remaining lease: About 43 years.

If all its recent proposed debt funded acquisitions should be successfully carried out, it is reasonable to expect rather much higher distributable income starting 2012 which would bump up DPU, of course.

However, with pro forma gearing level at 35%, the REIT could possibly resort to some equity fund raising for future proposed acquisitions.

I am still sanguine about Sabana REIT's numbers and I will accumulate if there should be any weakness in its unit price.

Read announcement here.

ARA: Partial divestment at $1.20

I was hoping that ARA's unit price would retest resistance provided by the declining 20dMA yesterday after the rather nice white candle the day before. So, I was hoping that there would be a chance to sell closer to $1.30.

Unfortunately, yesterday's black candle was formed on the back of much higher volume as price tried unsuccessfully to move higher. The ADX is rising and the DIs are still negatively placed. Selling pressure was strong.

The white candle today had even lower volume than that of two days ago. The bulls seem to lack conviction. So, I decided to lock in some gains by divesting those units obtained at $1.13 recently at $1.20.

If price were to go higher from here to test resistance provided by the declining 20dMA which approximates $1.29, I could divest those units obtained at $1.22 last week. If price were to weaken, I could load up again if the immediate support at $1.11 should hold firm.