This article first appeared in The Edge Financial Daily, on June 8, 2016.

 AmFirst (REIT) (-ve)

SHARES in AmFirst Real Estate Investment Trust (REIT) (fundamental: 0.05/3, valuation: 2.7/3) triggered our momentum algorithm yesterday, but it was highlighted as a “red flag” stock, suggesting that investors should exercise extra caution while trading in its shares.

The counter rose one sen or 1.36% to end the trading hours at 74.5 sen, after 354,900 million shares were done.

For the financial year ended March 31, 2016 (FY16), its net profit rose 78.33% year-on-year to RM68.37 million, though gross revenue declined 6.64% to RM99.79 million from RM106.89 million in FY15, due to lower occupancy rate of a couple of its properties and some rental reduction given (The Summit Retail and The Summit Hotel) as rebates for ongoing refurbishments.

It paid a total distribution per unit of 5.10 sen for FY16, down 7.8% from the 5.53 sen paid out in FY15.

The REIT is currently trading at 1.72 times its book value.