But at 27 cents, First REIT is significantly above its rights price of 20 cents which was announced in December 2020 and completed in February. However, it remains below its theoretical ex-rights price of 31 cents, a level that is likely to be a resistance. Support has been established at 20 cents.
If there is a choice between ParkwayLife REIT (PLife REIT) and First REIT which one would traders choose? Apparently neither as one intrepid trader pointed out that REITs are not for punting but for investing. “Their volume is very low. PLife REIT has 1.9 million units traded and First REIT only 700,000,” he said and it was already mid-afternoon. Still, with PLife REIT trading at all-time highs and with indicators in overbought territory, traders may be tempted to punt First REIT.
The chart patterns of the two REITs look very different too. PLife REIT has been on a multi-year uptrend. Its units are up 25% since January and up 46% over a one-year period. First REIT’s units are up 10% this year. However, on a one year basis, its units are down 59% excluding distributions.
