Stock Movement - 12 APR 2010: Cache Logistics closes at 0.955 on the first day of trading

Cache Logistics Trust started trading today at 2:00 PM. It opened at 0.995, which is also the intraday high. It closed at 0.955, which is about 8.5% above the IPO price of 0.880. Volume was high with 149,350,000 units changing hands within the half day of trading.


Author's Note
The projected yield for 2010 is 8.7% over the IPO price of 0.880, or DPU of 7.656 cents annually. The closing price of 0.955 means the projected yield is now down to about 8%. The closing price is about 9.7% above the NAV per unit of 0.870. The industrial Reits of similar asset value like AIMSAMPIReit and Cambridge are still trading at discounts to their NAVs per unit (See About a Reit - IPO of Cache Logistics Trust).

Stock Movement - 3 MAR 2010: Fortune Reit closes at 52 weeks high of HKD 3.41

Fortune Reit closes at 52 weeks high of HKD 3.41 today.

Author's Note
Following its announcement on Feb 24 to seek dual-primary listing in Hong Kong, the stock price of the Reit has been moving upwards.

The Reit has further announced today that it has made a submission to the securities and futures commission of hong kong for the dual listing. See report.

The Reit closes at HKD 3.01 on Feb 24 prior to the announcement about the dual listing. At the closing price today, the price has moved up by about 13%.

Stock Movement - 3 FEB 2010: Starhill Global Price Movement XD

Interestingly, stock price of Starhill Global did not drop too much after XD. It closes at 0.550 today, and was trading in a narrow range of 0.545 - 0.550. The price is more or less back to levels during the CD period. There was a huge volume single transaction buy up of 1000 lots at the price of 0.550 in the afternoon trading.

Stock price of Starhill Global has been quite volatile since the announcement of acquisitions of the Australian and Malaysian properties in Nov 2009. The acquisition of David Jones Building was completed in 20 Jan 2010, and should contribute to the distribution in Q1 2010. There has yet to be any further updates on the acquisition of the Malaysian properties Starhill Gallery and Lot 10. The Reit manages to increase the DPU from 0.95 to 0.97 QoQ. Hopefully with the confirmation of the acquisition plan for the Malaysian properties, the Reit will be able trend upwards. The Reit was recently upgraded to Buy by DBS Vickers with a target price of 0.66.

Stock Movement - 4 JAN 2010: Starhill Global surges up to 0.55 despite demise of Reit Manager's CEO

Starhill Global closes at day high of 0.55 (+0.025) on 4 Jan 2010 at high volume of 15,304,000 units. This is despite the news of demise of Franklin Heng, CEO of the Reit's Manager, YTL Pacific Star REIT Management Limited, released on 31 Dec 2009. The previous week, the stock was sold down to as low as 0.505 at high volume - refer to Stock Movement - Starhill Global Reit in Top 10 Volume Today.The closing price of 0.55 is also the highest for the past one month plus.

Author's Note
Apparently some has thought that the demise of the Reit manager's CEO will send the stock price lower, but the stock price has gone up substantially instead. It may be that either the sell down has already happened the previous week, or market has decided that the demise of the CEO will not have a significant impact on the fundamentals of the Reit. The stock was largely trading at 0.510 in the previous week. Those who have 'bravely' bought it would have made a handsome profit today. It remains to be seen whether this stock will finally see some light after a downtrend, followed by up and down ride since the middle of November when its acquisition plans were announced.

Stock Movement - 31 DEC 2009: Ascendas Reit continues to surge higher at high volume. (Close $2.220, +0.130)

Following the previous report last week: Stock Movement - Ascendas Reit is a $2.00 stock again, Ascendas Reit continues to surge higher at high volume in the last trading day of 2009. The stock closes at $2.220, and at +0.130 over the closing price of the previous day, it is a jump of almost 6.2%. Trading volume was in the top 20 list at 13,058,000 units, even higher than the 11,359,000 units on Dec 23. Not to forget that this was achieved on a half-day trading day.

Author's Word
Not only was Ascendas Reit able to maintain above $2 level for the past few days since Dec 23, it has managed to close at the highest stock price for the whole year at $2.22. We do not know how much of this was due to year end window dressing, but it is definitely a significant milestone for this stock.

Stock Movement - Listings

Stock Movement - 4 JAN 2010: Starhill Global surges up to 0.55 despite demise of Reit Manager's CEO

Stock Movement - 31 DEC 2009: Ascendas Reit continues to surge higher at high volume. (Close $2.220, +0.130)

Stock Movement - Starhill Global Reit in Top 10 Volume Today

Stock Movement - Ascendas Reit is a $2.00 stock again

Stock Movement - Fortune Reit closes above the HK$3 toda

Stock Movement - MacArthurCook Reit and MacArthurCook Rights

Stock Movement - Capitacomm trends up to 52 weeks high. K-Reit breaks out of trading range.

Stock Movement - Fortune Reit closes above the HK$2.90 level today

Stock Movement - CapitaMall climbs back above the 1.8 level

Stock Movement - Starhill Global in narrow trading range (close 0.525, -0.005)

Stock Movement - Starhill Global finally breaks downtrend (close 0.53, +0.015)

Stock Movement - Starhill Global continues downtrend (close 0.53, -0.01)

Stock Movement - Kreit trends down after issue of rights units

Stock Movement - Starhill Global share price drops about 4.3% after acquisition announcement

Stock Movement - Starhill Global Reit in Top 10 Volume Today

Starhill Global Reit is within the top 10 counters by volume today. It closes at 0.510, -0.005 from the previous trading day. Volume was unusually high at about 23,109,000 units, almost 10 times its 52 wk average volume of 2,319,000 units (source sharejunction). For most part of the afternoon the buy - sell queues were maintained at 0.505 - 0.510, but there was no single transaction at 0.505.

Author's Note
Since the Reit's announcement of acquisition of properties in the middle of Nov 2009, its stock price has not been performing well for the past few weeks. For a few times it has went up to 0.530 - 0.540 level, only to be sold down to the 0.510 - 0.515 level again. Perhaps market is waiting for clearer details of its funding for the acquisition of the Malaysian properties, Starhill Gallery and Lot 10, before the price is stabilized.

Stock Movement - Ascendas Reit is a $2.00 stock again

Ascendas Reit closes at 2.08 for consecutive days on Dec 23 and Dec 24. On both days, it has touch an intra-day high of 2.10. Volume on Dec 23 was relatively high at about 11,359,000 units (52 Wk average volume about 497,639 units, source sharejunction).

This stock has largely been trading above $2.00 in 2008 before the fall of Lehman. From Jan 2009 onwards, the stock has never managed to cross the $2.00 level until yesterday. Finally, this stock is back as a $2.00 stock again. We will have to see whether it will hold above this level in days to come.

Stock Movement - Fortune Reit closes above the HK$3 today

Following the previous report Stock Movement - Fortune Reit closes above the HK$2.90 level today on Dec 4, Fortune Reit has achieved a new high today since the rights issue period, closing at HK$3.03. Volume was relatively high at 10,313,000 units (52 Wk average volume about 1,072,000 units, source sharejunction).

Stock Movement - MacArthurCook Reit and MacArthurCook Rights

Shares of MacArthurCook Reit were trading at a narrow range of 0.195 - 0.200, while the MacArthurCook rights were trading at around 0.030 - 0.035. The trading of rights commenced on Dec 3 and will end on Dec 11.

Author's Note
There was a arbitrage opportunity today. If you had wanted to buy the shares directly at say S$0.200, you could have bought the rights at S$0.035 and subscribed for the rights shares at the Rights Issue Price of S$0.159 per unit, which will then cost you a total of S$0.194 per share, a discount of S$0.006 per share. Of course you must remember to subscribe to the rights shares before the deadline on Dec 17. Note that commission has not been factored in, but you would have incurred commission charges anyway whether you are buying the shares or the rights. Big shareholders could have make use of this opportunity to sell the mother shares and buy the rights to pocket the difference in pricing. Of course the number of shares and rights transacted have to be substantial to make a significant difference.

Pro Forma Figures
With reference to the section on PRO FORMA IMPACT OF THE PROPOSED TRANSACTIONS in the CIRCULAR TO UNITHOLDERS on Nov 6, following are some of the pro forma figures:

- DPU for 1H 2010 (01 Apr 2009 to 30 Sep 2009) = 1.04 cents
- NAV per unit as at 30 Sep 2009 = $0.31
- Total Debt as at 30 Sep 2009 = $190,758,000
- Appraised value/purchase price of portfolio for 1H 2010 = $652,866,000
- Gearing as at 30 Sep 2009 = 29.0%
- Units in issue = 1,465,308,000

Base on the pro forma DPU for 1H 2010 of 1.04 cents, and NAV of $0.31, at the price of $0.194 via buying of rights and subscribing to rights shares, the pro forma yield will be about 10.7%, and at a discount of about 37.4% to the NAV.

Things to take note:
- Above figures may not hold if industrial properties continue to devalue and rental income continue to decline.
- The purchase price of 1A International Business Park (1A IBP) of S$90.0 million was agreed upon in 25 August 2007. Current valuation is S$73.0 million, according to the letter to unit holders on Nov 16.

Stock Movement - Capitacomm trends up to 52 weeks high. K-Reit breaks out of trading range.

CapitaCommercial Trust closes at 52 weeks high of 1.18 today at a high volume of about 12,046,000 units. It manages to touch 1.20 at the intraday high. K-Reit, another office REIT, also breaks out of its trading range after the rights issue to close at 5 weeks high of 1.07, which is also its intraday high.

Is this signaling the beginning of recovery of the office sector? The recent K-REIT Asia Investor Meetings December 2009 seems to suggest so in the Singapore Office Sector Outlook of the presentation slides.

Currently both REITs are trading at a yield of around 5-6%, and at a discount to their NAV of 1.49. Gearing of Capitacomm and K-Reit are around 31% and 9% (post rights issue) respectively.

Stock Movement - Fortune Reit closes above the HK$2.90 level today

Fortune Reit closes above the HK$2.90 level today, at HK$2.940 with trading volume of 7,158,000 units, second top volume among the REITs today. Intraday high was HK$2.970.

Fortune Reit closed at a high of above HK$3.32 on Aug 21, one trading day before the announcement of rights issue and acquisitions of 3 new properties on Aug 24. Following the announcement, the price fell to the HK$2.9 level and hovered around that region for a few weeks. The price fell further when the rights were being traded, hitting an intraday low of HK$2.45 on Sep 24. Following the issue of new shares, the price was mostly around the HK$2.7 region.

Author's Note:
I have bought Fortune during the rights trading period at around HK$2.70++. Bought more when the price went lower to around HK$2.50++. Also successfully applied for some excess rights shares at HK$2.29. Average price is around HK$2.60. My rational for buying the stock then was because with the price around HK$2.5 to HK$2.7 region, and the promo forma semi annual DPU of HK$0.1203, the yield is estimated to be around 8-9% post rights issue, still one of the highest among the REITs, with the gearing still maintained at a relatively low level of around 25%. If the uptrend continues, there will finally be some pay off to my patience.

There will be a semi annual distribution at the end of this quarter, XD probably around January next year. Hopefully this will be a support and even boost to the share price. However, one thing to take note is that the REIT might not meet the promo forma DPU for this semi annual distribution as the 3 new properties were only officially acquired on Oct 15 2009. Their rental contribution to the coming semi-annual distribution will only be for one quarter.

Stock Movement - CapitaMall climbs back above the 1.8 level

CapitaMall Trust climbs back above the 1.8 level today, closing at the highest price of the day of 1.81, at a volume of 5,980,000 units, top volume among the REITs counters.

After closing at a high of 1.87 on Oct 1, the REIT has been trending downwards after the announcement of the CapitaMall Asia IPO. Many has attributed this to the transferring of funds from CapitaMall Trust to CapitaMall Asia. The REIT hits an intraday low of 1.56 on Nov 2, and been hovering around 1.6 to 1.7 level for the past few weeks. The REIT has been slowly trending up after the IPO of CapitaMall Asia on Nov 25, and manages to close above 1.8 today.

Stock Movement - Starhill Global in narrow trading range (close 0.525, -0.005)

Starhill Global is relatively more stable today. It was in narrow trading range of 0.525 - 0.53 in the morning, and dropped to narrow trading range of 0.520 - 0.525 in the afternoon. Intraday low at 0.52 and intraday high at 0.535, closing at 0.525, -0.005 from previous day closing of 0.53. Trading volume was relatively less than past few days at 2,462,000 units. Once again Starhill Global investors will be asking, has the fierce selling the past few days finally over? Today's pattern seems to indicate stabilization. We will have to see how it turns out next week.

Stock Movement - Starhill Global finally breaks downtrend (close 0.53, +0.015)

Starhill Global finally breaks days of downtrend, closing 0.53, +0.015 from the previous day. Volume is still high at 4,922,000 units. Shortly after the opening, the share price touches intraday low of 0.515. In the afternoon, share price touches intraday high of 0.535 before closing at 0.53. Has the last few days of heavy selling finally ended? Does 0.515 marks the near term low for starhill? We will have to observe for a few more days to confirm.

Stock Movement - Starhill Global continues downtrend (close 0.53, -0.01)

Share price of Starhill Global Reit continues to trend down further today, closing at 0.53, down 0.01 from yesterday's 0.540. It touches an intraday low of 0.525 in the late afternoon. Volume is relatively high at 5,125,000 units.

As of this writing, there has not been any filing of report in SGX about cutting of stake by any substantial share holders.

Stock Movement - Kreit trends down after issue of rights units

Kreit-asia trends down to narrow trading range of 0.985 - 0.99 today, the first day of trading of rights units. It manages to close at 0.995. Intraday low was 0.985. The trading range is similar to that during the period when rights were being traded.

In the related reports, after the rights issue, Kreit units held by Keppel Land have increased to 45.38 % of total units in issue. Units held by Keppel Corp have increased to 75.87% of units in issue. Free float now stands at about 24.13%, which is towards the low side. You may view the related reports here.

Stock Movement - Starhill Global share price drops about 4.3% after acquisition announcement

Starhill Global Reit closes at 0.545 one day after announcement of acquisitions of the 1 Australian and 2 Malaysian properties on Nov 18 (after market closes). Starhill Global was trading around the 0.565 - 0.57 range before the announcement. As of this writing on Nov 20, the share price has touch a day low of 0.53.

Did some back of the envelope calculations after the announcement on Nov 18, and thought it was quite a good deal since it is yield-accretive, and the malaysian properties were at a rather large discount to their latest valuation. Furthermore, Starhill Global still has about SGD 300 million cash from the rights issue. To date, there has not been any SGX announcements about cutting of stake by any substantial share holder.

Wanted to know the reasons for the sell down, but was unable to find any conclusive ones. Read some analyst reports and the following are 2 sore points to the acquisitions:

1. There is not enough details about the funding of the Malaysian properties, which have a price tag of SGD 423.3 million. Accord to the reports, the market may not be comfortable with this overhang.
2. The market may prefer REITs that are pure local play rather than such a geographically diversified portfolio, which will now include properties in Singapore, China, Japan, Australia, and Malaysia.

To me, the above reasons are sentiment swinging, and are rather difficult to be factored into the share price. Looking purely at the numbers, the latest quarterly DPU of 0.95 cents implies an annual yield of around 7% at the current price of 0.53 to 0.54, before factoring in the contribution to DPU by the new properties. There should be some support to share price when the yield becomes unreasonably high.