BUSINESS:
Its current portfolio consists of five quality office buildings located in Singapore and Australia. Local properties consist of Alexandra Technopark, 55 Market Street and China Square Central.
OVERVIEW:
Over latest financial quarter, the REIT counter posted increase on revenue and distribution per unit by 23.3% and 20% year on year. Over 2014, its dividend is released quarterly at average >0.022/shares, which translates to ~1.5% quarterly yield.
REASON TO BUY:
A buy call is issued for the counter mainly from technical analysis perspective. Since Jan 2014, the counter has been moving within a rising channel (highlighted in yellow) as refer to the chart below. By the end of last trading day, it has rebounded from support line at $1.44 and closed at $1.46. Indicators such as MACD and Stochastic are hinting an upward could be in place. Surging volume is another positive factor.
The technical perspective is supported by fundamental reason as well. On the last Wednesday meeting, US Federal Reserve persisted its dovish stance that interest hike might not be so soon until stronger economic growth is in sight. Local REITs counter could be target of yield seeker again. Even the rising trend is not realized, 1.5% dividend by next quarter can be good consolation price.
ENTRY PRICE & TARGET EARNING
Buy ~$1.46 then target to take profit >$1.51.
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