Sunday, January 9, 2011

Ascendas Reit - Jan 8

Background: Ascendas Reit closed on 2.16 on friday...

I was thinking of selling off Ascendas Reit (for a long time already) after having made a poor decision to buy Ascendas Reit a few months ago. Ascendas Reit, compared to her peers, doesnt look like a winner to me.

For reits I normally look out for these factors (in no order of importance): High Dividend Yield, Low Gearing, Strong Sponsor, Price over NAV, payout ratio.

From data compiled by other blogs with special interest in reits, i noticed that Ascendas Reit has a gearing of 34.3%, dividend yield of around 6%, NAV of only $1.57, sponsored primarily by Ascendas, payout ratio of 62%...

Among Industrial reits, it currently has the lowest dividend yield and it is trading at a price to book value of 1.38 (also the highest among industrial reits), a gearing that is rather high (although lower than other other industrial reit like MIT, MLT and Cambridge)

Looking at her technicals, it is currently at the upper bolinger band, far away from her 200dma of 2.11, suggesting that a correction may be imminent. Stochastic is in overbought region and rsi is near overbought, it might be a good time to sell ascendas reit.

I know that Ascendas Reit is going to announce her results and give dividend soon, but since price is quite good now and I would be able to avoid selling at a loss, why not sell now?

Then comes the question of what i would do after selling Ascendas Reit? Perhaps, get another reit? I am currently looking at First Reit, which has caught the eyes of many of my fellow investment bloggers, or Sabana Reit (which i think is quite attractive), or wait till maple commercial trust ipo? or perhaps expand my growth stocks investments.

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