Reits to ride on for the yield pull back

Please read the disclaimer at the bottom of my blog if you wish to continue with the contents below.


I am usually more of a value investor. Current situation calls for a possible pull back of US 10 year yield. This scenario would happen if the up and coming announcement for the tapering of QE3 is superficial/gradual or delayed. A logical thought progression, but still bounded by probability.

This, in my opinion, calls for a potential price appreciation for reit counters. Here are a few fundamentally undervalued counters that I think could be worth the ride(Ignoring those that has already appreciated this past few weeks). I will be willing to hold these medium to long term seeing that they are defensive in nature. To each his own.

SoilbuildBizReit 

DPU 4.37cts
Mkt Price: 0.725
Yield: 8.093%
Nav: $0.80
Gearing: 29.90%


AIMSAMPI Reit
DPU 2.5cts
Mkt price: $1.475
Yield: 6.78%
NAV: $1.501
Gearing: 25.40%

Reason: Pure local exposure with discount to book value, decent yield(<6%) and low borrowing.