AIMS AMP Industrial REIT

[Risk Adverse]

As in Suntec's case, an acquisition is NOT made solely on yield accreditive purpose only. There are strategic reasons such as refreshing of assets portfolio that are vital to the long term sustainability of the REIT. With the current yield of >10%, AIMSAMP will have very little room to make accretive acquisitions. This may not be good in the longer term.

[lonewolf]

The REIT is proposing a 5-for-1 unit consolidation.

[ S O U R C E ]

Rationale:

1) Improvement in the profile and attractiveness of AIMSAMPIREIT and the Units

2) Reduction of the magnitude of volatility of AIMSAMPIREIT’s Unit trading price and market capitalisation

I get the feeling that the trust manager is trying to avoid falling into the dreaded <20c territory and be subjected to price spread of 0.1c. I usually do not like it when company does shares consolidation but in the case of REIT, the impact has been minimal. FCOT was the first REIT to do unit consolidation and its more or less holding its level post-consolidation.

(Vested)

[Nick]

AIMS provided progress update on their latest development projects (including pictures) -

http://info.sgx.com/webcoranncatth.nsf/V...F0010FA73/$file/AIMSAMPIREIT_Progress_Update.pdf?openelement [SGX Announcement]

Ever since AIMS took over Management, they have divested weaker assets and purchased higher quality assets while raising new equity.

Divestments:

Sold 23 Changi South Avenue 2 for $16.7 mil (book value $16.2 mil)

Sold Asahi Ohmiya Warehouse for $22.85 mil (book value $22.35 mil)

Sold 31 Admiralty Road property for $16.438 mil (book value $15.1 mil)

Investments:

Acquired ramped up warehouse industrial property in Penjuru Lane for $161 mil

Acquired high tech light industrial Northtech property for $72 mil

Redeveloping existing property (valued at $41.8 mil) into 5 storey ramp up warehouse (valued at $214 mil) for $155 mil.

Will this strategy work ? Share price is trading at 95.0 cents with a dividend yield of 10.5%.

(Not Vested)

[Nick]

SIAS intiated coverage on AIMS REIT with a report titled - Reposition for Steady Growth (SIAS)

www.kfc1973-stock.blogspot.com/2012/03/aims-amp-capital-industrial-reit.html [Report]

This is one of the smaller REITs and trades at > 9% yield. Gearing isn't high at the moment but post redevelopment, it will be around 38%.

(Not Vested)

[momoeagle]

I'm happy with this counter so far having bought at average of 20.5cts (now $1.025 after 5for1 consolidation)
But my mum (an IPO "forced" long term investor) isn't happy

(Vested)

[Drizzt]

i also bought at ipo 1 buck.

[KopiKat]

i also bought at ipo 1 buck.

My records listed it as IPO @ $1.20 on 19-Apr-07 2pm as MI-REIT.

I think I was "unlucky" as I didn't get any at IPO but I must have been happy that I got some at a lower price of $1.18 1 week later. Hahaha..

[Nick]

Curious - if you bought at IPO, subscribed for the 2 rights issue and collected the dividends, will you still be deep in red ?

(Not Vested)

[corydorus]

I remember reading a reit book which has taken Rights/Consolidation into consideration. I did a very rough yearly divident counts, and my conclusion is many reits will still be in the red. You will be much better off accumulating at lows and those that manage well.

[KopiKat]

Curious - if you bought at IPO, subscribed for the 2 rights issue and collected the dividends, will you still be deep in red ?

(Not Vested)

I don't have such data as I had done too many trades for this stock. My 'feel' is still lose $$ if I'd not done any more trades. Perhaps this table from a BT article found in this blog can help answer your Q?

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