Bought 20,000 shares of AIMS AMP REIT on 30th Jan at $1.38.
Reasons for buying AIMS AMP REIT:
1) Dividend yield near to 9% based on buy price
2) NAV at $1.36 as of 30 Sep 2017.
- majority of the REITS share price had shot up (PB ratio above 1)
- dislike to pay a premium for REIT
- expecting around 2.5 cents of dividend to be declare on 1st Feb. This will make my PB ratio exactly at 1
3) Upcoming Industrial supply in the next few years will be lower as compared to last 5 years.
I remembered seeing a similar supply and demand in the office sector last 2 years when the high office supply cause CapitaLand Commerical Trust (CCT) to drop from $1.90 to $1.30. With the office supply back to norm now, CCT had bounced back up to $1.91 (As of 30 Jan).
Given the industrial supply is near bottom, expecting the same situation to apply in AIMS AMP REIT
4) It is near 52week low ($1.33)
AIMS AMP REIT will be releasing its quarterly result on 1 Feb, before market start.
This mean juicy dividend time.