IOF - Investa Office Fund

[Joe Blow]

ING Office Fund (IOF) owns an internationally diversified portfolio of office properties, many leased to government and blue chip tenants. It also owns a 13.4% stake in ING Dutch Office Fund. IOF was formed following the merger of the Prime Credit Property Trust and the Armstrong Jones Office Trust. The fund is managed by ING Real Estate Australia.

http://www.ingrealestate.com/au_en/i...g_office_fund/

[nulla nulla]

Another REIT stock apparently flying under the radar. Out of favour since the gfc, done the capital raising, reduced debt, no longer paying high yield dividends out of borrowings but still paying a yield greater than 5%, trading at a discount to Net Tangible Assets (nta).

Usualy has plenty of liquidity (volume of daily turnover), experiences good days and bad days where the price goes up and down, and provides opportunities for the odd quick trade.

At present there is an element of uncertainty hanging over the ING Property Portfolio;s (IEF, IIF & IOF). The parent wants to to get out, GMG wants to take over IIF and Investra wants the management rights to IOF.

GMG are in the due diligence stage of reviewing IIF and the rumours are that ING are leaning to a management take over of IOF. However there doesn't appear to be a lot of information being released to the market to date.

IMO iof is worth keeping an eye on even if only as a share that will recover price narrowing the gap to nta as the economy, employment and commercial property prices improves in 2011 - 2012. And of course DYOR.

[nulla nulla]

Two weeks on and little or no news regarding the future of IOF. The price has fallen through the support level of $0.565 and tested $0.55 before closing on Friday at $0.555.
From memory iof is due to announce their dividend and go ex-div soon, usualy goes ex-div on or about 23 December.
The div of arrounf 1c is unlikely to inspire a sudden rush to get shares. In the abscence of any information as to what is happening with the future management it wouldn't surprise me to see the share test the support level of $0.52.

[nulla nulla]

Testing the lower depths of the sideways (and downward) channel, iof bounced off $0.545 before closing out the week on $0.565. The big picture doesn't look flash and there is stil little or no news on what is happening with management/diversification from ING.

[nulla nulla]

From an interday low of $0.53 on 04 January 2011, iof rallied to $0.58 on 13 January 2011. Nice Swing. If the optimisim in the all ordinaries continues don't be surprised to see iof test the low $0.60's.

[nulla nulla]

Tested the low $0.60's then fell back in Fridays market tightening. Could rally from here or just as easily fall back and test support levels.

[nulla nulla]

Looks like this stock is being propped up on speculation of a takeover or management buy out. While still trading at a discount to nta, it appears to be challenging the upper levels of the trading channel. If holding from the recent lows, now might be a good time to lock in some profits.

[nulla nulla]

IOF may have peaked for now at arround $0.615, then again it could be just taking a breather before moving further up. DYOR.

[nulla nulla]

An update on the IAG parent restructure of the property divisions wouldn't go astray. It has been some time since the last press release. The share price now seems to be (temporarily ?) stuck at the $0.60 - $0.61 range.

[nulla nulla]

Once again IOF appears to be moving side ways in the range $0.595 and $0.62. The parent is very coy about updating the market as to what they are proposing to do with IOF. Recent volumes have picked up.
The open/close/high/low chart shows iof as having rebounded from the low of $0.53 and now having a support line at $0.595 with a resistance lline arround $0.62.

iof 2011-03-04.png


The MACD chart shows the share price closing the gap to the moving average.

iof 2011-03-04 macd.png

The RSI chart shows the share price moving out of the oversold area and possibly starting to move into the overbought area.

iof 2011-03-04 rsi.png

I notice that CBA has increased its holding in IOF. Perhaps they are looking to do a takeover/merger with CPA looking for savings for both camps in the synergies of consolidation??? Perhaps they are just trading the swings as they have done in the past. Who knows, as always dyor.

[nulla nulla]

The "Responsible Entity" for IOF has finally made a release to the market on what is happening to IOF. Investra have acquired the management rights and will also buy the ING parent 2.5% equity in IOF at $0.58c per share.

It also looks like IOF will be renamed Investa Office Fund and continue to trade on the asx under the IOF banner. It is possible that the unlisted properties already held by Investra will be acquired by IOF boosting the properties owned and/or under management to more than $8 billion making it a serious player in the Australian REIT sector.

Interesting article on the move in todays Business Day.

http://www.smh.com.au/business/ing-p...328-1cdfl.html

There have been some recent increases in significant holdings. Todays price action will be interesting and in the next week or so when we see if there is more buying up or divesting.
If they do go ahead with the buy up of the Investra properties, they will probally have to do it along similar lines to the cpa buy up of Grollo's property by issuing script to Investra and raising capital from shareholders.

Yesterdays chart.

[nulla nulla]

A couple of media updates and views on what is happening with IOF (Investra Office Fund formerly ING Office Fund). The price spiked up to $0.63 midweek but dipped back to the $0.615 - $0.62 range before closing on Friady at $0.62.

I wouldn't be surprised to see it drift back to $0.58. This being the price Investra paid ING for the 2.5% stake . It is probably a fair guide to the price IOF may go to Instituional Investers (and hopefully Retail Investors) when they do the capital raising the will need for IOF to buy out the nominated Investra's properties (subject to review/approval of the "independant directors").

Had to repost as I attached the wrong chart.

[nulla nulla]

No capital raising and no retrace. The share price traversed sideways between $0.61 and $0.63 before spiking up to $0.665 in June. Recently dropped back and ranging between $0.63 and $0.65. I'm finding it hard to determine when it will be safe to jump back in.

[nulla nulla]

IOF dropped to $0.615 but never looked like coming through to my bid at $0.60. It looks like the new entry level may be arround $0.62 to $0.63 but the top (for now) looks like a tight trade exit arround $0.65.

iof 2011-07-22.png

A bit tight for me, might wait and leave my bid for the next down turn.

[nulla nulla]

Still too tight for me. Seems to be ranging between $0.62 and $0.645 which is surprising given their mix of Australian and Overseas properties. You would think the share rpice would be under more pressure.

iof 2011-07-29.png

My bid at $0.60 is still there. If I get on, good. If I don't get on, no big deal. Other opportunities will present themselves.

[nulla nulla]

"So ask yourself punk do you feel lucky?" Even Clint Eastwood would have dubts as to whether the market is going to rally from here or is taking a breather before heading down further. The big difference between this time arround and last time is that all the reit's have significantly reduced debt and are no longer paying distributions out of borrowings.

iof 2011-08-12.png

At this level IOF has signalled a buy for me over the last two years, and I admit I have done very well out of it. However this time arround I am mindful of a philosophy posted in the old chat site by merv, "sometimes it is better to catch the train at the third northbound station rather than the first. At least then you know it is the north bound train".

This is not a recommendation. As always do your own reasearch.

[nulla nulla]

Resiliance, strength, improved management direction, reduced borrowings and no longer paying distributions from borrowings. Versus Exposure to the overseas sovereign debt issues playing out. Don't forget that IOF has a European properties in its portfolio. And any credit squeeze and deteriation in europe could negatively impact on earnings.

iof 2011-08-19.png

Standing on it's own feet in the face of the stampeding herd IOF did well to hold at $0.58. However it has fallen further during less volatile times and is capable of falling further as the sovereign debt finger pointing plays out. Be careful it could still test sub $0.555.

[nulla nulla]

You just have to love a share like iof that bounces up and down, sideways and upwards or sideways and downwards, always with a big enough range (over a few days) to jump in and out taking cummulative small profits.

iof 2011-09-28.png

Nuff said. DYO and good luck. I'm currently out and watching the movement for a re-entry.

[nulla nulla]

Volumes were up over the last 4 trading days, The RSI chart suggests iof is in oversold territory while the MACD chart indicated iof is closing the gap (upwards) to the average price. Then today, iof opened at $0.61 and fell on higher volume through the day to close on $0.595.

iof 2011-11-30.png

This is at odds with the rest of the reit sector which has rallied over the last few days.
Scratches head and watches for another entry point?

[nulla nulla]

The share buy back has finished and I was half expecting the share price to drop back without the support of the buy back. Not so. IOF continued to trade in a tight range and received good support in yesterdays close to finish on $0.62 before going exdiv.

The share price fell to $0.595 on light volume this morning (the div plus) then rallied to $0.605 - $0.61. The buyers at $0.61 were thin on the ground through the day then came out of the woodwork to snap up 2 million in the auction locking in the closing price at $0.61.

iof 2011-12-22.png

$0.595 looks like a support line for now. The rest of the reit's that went ex-div today all seemed to stay on or above the value of yesterdays closing price less the dividend.

It wouldn't surprise me to see IOF push higher from here. The have sold off two European assets and are closing out the associated debt. They have applied excess funds to buy back share. The NTA is still at a discount to the share value and the financing levels are lower. Then again the market is a fickle lady and shouldn't be taken for granted. As always dyor.