Aims Apac Reit in Quest of Recovery

Aims Apac Industrial Reit (SGX:O5RU) is the largest component of my investment portfolio.

It is ranked last in my 10 Best Reits in Singapore.

In my previous post before its 4Q 2020 results announcement, the share price was at $1.13 above the 61.8% Fibonacci retracement level. I mentioned that:

"its 20 days MA is closing in on the 50 days MA. If it crosses, the share price may attempt to reach the next intermediate resistance at $1.25, which is at the 38.2% Fibonacci retracement level."

After announcing a decent set of quarterly results showing muted impact to its business and tenants, and being one of the few Reits to be able to pay out 2 cents dividends, its share price is testing the $1.25 resistance today.

The William%R is near but not yet hit -20 to indicate an oversold condition. Though it is able to stay above the 20 days MA trendline, volume is not large. I think it may not be able to clear $1.25 soon. It may range bound between the 20 days MA of $1.18 and $1.25 resistance. However, if it is able to power through $1.25 on high volume and momentum, it will then be able to clear the 100 days MA at $1.28 with ease.

I hope Aims Apac Reit will be able to slowly recover to its pre Covid levels but it will not be an easy feat. Its recovery will depend on the 1Q 2020 and subsequent quarter results.

If it is able to sustain at least 2 cents of quarterly dividends, at a share price of $1.25 will yield 6.4% which is higher than other industrial Reits but no longer as attractive when its share price was lower below $1.20 in Mar to Apr 2020.

Thanks for reading.

Love & Peace,
Qiongster