First REIT: FY2011 results.

DPU for 4Q 2011 is 1.93c which is another bumper distribution! The REIT will go XD on 1 February and the income distribution is payable on 29 February.

This includes distribution coming out of a portion of the total gains on divestment of the Adam Road property of about S$8.7 million.

Without such a return of capital, the DPU for 4Q 2011 is 1.61c. Annualised DPU is, therefore, estimated to be 6.44c. To calculate a more realistic distribution yield, we have to use this number. At the unit price of 77c, we get a distribution yield of 8.36%.

NAV/unit: 80.5c
Gearing: 16%
Interest cover ratio: 12.3x

Technically, volume has been rising but price has plateaued at 77c which seems like a difficult resistance to overcome.

How would Mr. Market react to the REIT's results? Could we see price action breaking resistance at 77c and going higher? If resistance should be overcome, there is a chance of a retest of 80c which I see as the upper end of a trading range.

See presentation slides: here.

Related post:
First REIT: Bumper distribution 3Q 2011.

LMIR: Partial divestment at 38c.

Anyone who made use of LMIR's rights issue to accumulate more units would be in the money now.

I see immediate resistance for LMIR's unit price at 38c and put in an overnight sell order for a partial divestment. It was filled today as unit price closed at 38.5c.

Fibo lines seem to suggest that in case of a retracement, we could see strong support at 34.5c. That is quite a bit to fall from here if it should be tested.

The strategy I have for LMIR is the same as the one for Sabana REIT and AIMS AMP Capital Industrial REIT. Hold a larger portion for regular income while trading a smaller portion for potential capital gains.

The decision to partially divest is fully based on technicals as, fundamentally, I think LMIR is still too cheap to sell.

Related post:
LMIR: Too cheap to sell.