AIMS AMP Industrial REIT

[Drizzt]

the price is below NAV. so essentially u get a larger share of income?

[Zelphon]

yield-accredictive? how so?


its unit yieding 9+%, newly acquired property yield 7.6%? it would yield more if they bought their own unit instead of the property.

From the presentation slides..

http://info.sgx.com/webcoranncatth.nsf/V...7002EA206/$file/AIMSAMPIREIT_NorthTech_Presentation.pdf?openelement

The NPI yield of existing property portfolio is 7.2%
The NPI yield of NorthTech is 7.6%

So it is yield-accredictive...

However, the discount of the private placement is too much...

Let's see how the market reacts later..

[freedom]

The NPI yield of existing property portfolio is 7.2%
The NPI yield of NorthTech is 7.6%

So it is yield-accredictive...

can calculate like that?

should it be compared with the yield of its unit?

also, the yield on the unit is yield after everything, not just NPI yield....

I am sure if they were to use the money to buy their own unit, would yield more...

[lonewolf]

I think the simple answer is that if the trust mgr buy their own units, they get nothing. If they acquire a new property, they get 1%. So why would any trust manager in its right mind do a 'units purchase' even if its yielding higher??

I know that one must control our emotions when it comes to investing but we are all flesh-and-blood after all; and not robots, so all of us have our own bias or prejudice.

After the fiasco that went on between Cambridge and MI-REIT (now AIMAMPS REITs), I do not think its entirely unfair to condemn Oz fund managers. Just from the top of my head, I can name a few trust/REITs associated with Oz managers that were value destructive: Cambridge, AIMSAMPS, Babcock and Brown (now Global Investment), AllcoREIT (now FCOT), MacCook PSF.

I'm vested in Cambridge, AIMSAMPS, FCOT and MacCook PSF and I planned to divest 3 of them this yr. No prize for guessing which one I will be retaining in my portfolio.

[Drizzt]

anyone knows how is aims management in Australia?

[Nick]

Sale of Asahi Ohmiya Warehouse, Japan above book value

http://info.sgx.com/webcoranncatth.nsf/V...F001E25BC/$file/AIMSAMPIRET_Sale_Japan_Property_Announcement.pdf?openelement

The property was sold above book value at S$22.8 million. Management has been mentioning this for a year stating that it wasn't a smart move for the previous Manager to buy merely 1 property in Japan since there is no economies of scale.

(Not Vested)

[freedom]

after deducting sales expense, probably just around or even below book value.

[piggo]

Didn't really look into the sales expense of the sale... but being above book value can't be a that bad a thing.

Recently this article was brought to my attention, it was posted on SGX under announcements.

In summary, the REIT aims to go through asset enhancement to boost income. It also wants to change the its local portfolio; towards less manufacturing and more business parks & high tech properties. What I find most disturbing is that they are planning to venture into China and compete with the likes of GLP and MLT over a 2 to 5 year horizon.

Personally feel that going into China and trying to establish a presence there with their limited funding tightening monetary policies in China, it's going to be hard. Also they've shown that private placements is on the cards (even if the reit is "undervalued") should they require more funds... suddenly it's a lot less attractive to retail investors like me...

[Risk Adverse]

AIMSAMP suffers from an image problem because of it's past. When Suntec raises money by private placement (at discount to market price), it's applauded. When AIMSAMP do the same it's slammed. With the acquisition of MBFC, Suntec's DPU has declined and gearing has shot up (>40%), yet it's considered a good buy. AIMSAMP's acquisitions has not diminished it's high DPU and its gearing is only 32%, yet there is all this negative vibes. Sentiments aside, this is a counter that is undervalued and has a high yield at current share price. So if you are not vested, this counter may be worth considering.

[Nick]

It is fine to raise equity via private placement to fund a yield accretive acquisition. But in AIMS case, I doubt the acquisition will lead to any DPU accretion. I don't think they have revealed any figures yet (why ?) but based on my earlier calculations, I think it will be a slightly yield negative. And so this begs the question why make the acquisition ? My calculations may be incorrect so don't quote me

Ultimately, if you are bullish about this yield stock, you should be happily collecting it now ! The DPU gains alone should make you a very happy man in the quarters to come. The second highest yielding stock at the moment...just behind FSLT.

(Not Vested)