Apr 27, 2017


I have love-hate relationship with this reit. This counter has almost 8% yield returns but despite my dividends strategy I do not makes much from it that I should in my past trades. In fact, due to my skepticism with it, I always buy and sell the wrong time. And the problem lies with confidence and model of this company.

Trying to time AA REIT is really a bad move. Not understanding the future plan of the REIT result in diminish confidence. And not absorbing the dividend strategy concept is another huge mistake.

AA Reit just announced their 4Q 2017 today.

QoQ DPU up 0.4%. YoY is actually down 5.8%. So what is it. Good or bad ? That's depend how we look at it. If compare to one other REIT which was in shareholder limelight, AA reit ability to hold up so well so far is good. And I know is not by chance it does.

And if we are to measure YoY, -5.8% seems bad. Really bad ? Put it another way, try to balance 5.8% reduction of DPU and ability to deliver 8% yield. I am happy with it as long we have good DPU trajectory and not the Stock price directly. That's the key I need to understand.

Here 's the DPU I have found and put into tables.

If we have look at the left chart, there is reducing DPUs overtime. However if we to look at the right chart, the DPU is very stable. Both chart is actually from high yield AA Reit. They are actually the same data presented in different way.

So the decision to make is simple. Is the DPU returns enough even if it does reduce. If so, stock price volatility is good for me to get cheaper.



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