First REIT: To sell or not to sell?

I have received questions from readers and friends if they should sell their units in First REIT given its stellar performance of late. I can't really advise if they should sell or hold on to their investments. I am not qualified to give advisories and neither do I have the inclination to do so.

I would say the following:

Fundamentally, First REIT is rock solid. One should, however, remember that its bumper income distributions in the last two quarters were due to contribution from the sale of its Adam Road property. If this contribution were removed, we are more likely to see a DPU of 1.6c per quarter. This means an annualised DPU of 6.4c. At today's high of 87c per unit, that would be a base distribution yield of 7.35%. Its larger peer, Parkway Life REIT, has a distribution yield of about 5.26% at a unit price of $1.825.

Technically, First REIT's unit price is continuing its march higher on strong volumes. There is vigorous accumulation going on if the OBV is anything to go by and although price action looks like it is becoming parabolic, the bullish momentum could push price higher to test 88c or even 89c. However, fatigue would very likely set in and a pull back to support at 82c could take place in time.

My remaining investment in First REIT is part of a core investment for passive income. It is unlikely that I would sell my remaining position. If I were trading First REIT, however, 87c to 89c would seem like very attractive prices for divestment. There, I have said it.

Related post:
First REIT: FY2011 results.

Beauty & the Beast, the 3D experience.

Walt Disney Animation Studios’ magical classic “Beauty and the Beast” returns to the big screen in Disney Digital 3D™, introducing a whole new generation to the Disney classic with stunning new 3D imagery.

The film captures the fantastic journey of Belle (voice of Paige O’Hara), a bright and beautiful young woman who’s taken prisoner by a hideous beast (voice of Robby Benson) in his castle.

Despite her precarious situation, Belle befriends the castle’s enchanted staff—a teapot, a candelabra and a mantel clock, among others—and ultimately learns to see beneath the Beast’s exterior to discover the heart and soul of a prince.

Featuring unforgettable music by Howard Ashman and Alan Menken, and an enormously talented vocal ensemble, “Beauty and the Beast” was the first animated feature to receive a Best Picture nomination from the Academy of Motion Picture Arts and Sciences and is also the first animated feature to cross the $100 million plateau in its initial release.

For trailers and more, visit Disney Studios Singapore: here.