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 REIT V2, Real Estate Investment Trust

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whizzer
post Oct 21 2010, 10:41 PM

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QUOTE(Jordy @ Oct 21 2010, 10:29 PM)
cherroy,

Weren't analysts being paid to make us (the investors) happy with their forecasts? tongue.gif
yok70,

That is correct, the highest close yet. With such good quarterly results and revaluation, no wonder the price surged that much. The results indicate that they still owe us 0.95 cents in dividend (out of a 4 cents dividend). Doesn't sound bad at all, considering the enlarged UIC.

Just for the record, 4 out of my 5 counters did extremely well today, giving me a paper gain of RM4,700 for today. I have not seen such a huge daily gain in my portfolio since 11 years ago. I am extremely satisfied biggrin.gif
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Yes. I notice that today REITs are up a lot. wink.gif Should have top up some yesterday.
ronnie
post Oct 21 2010, 11:29 PM

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Where can we find out which month each REIT's dividend payout within 1 year ?
teehk_tee
post Oct 21 2010, 11:36 PM

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QUOTE(ronnie @ Oct 21 2010, 11:29 PM)
Where can we find out which month each REIT's dividend payout within 1 year ?
*
mreit.reitdata.com
it's probably the most complete database.

how i count is i take their quarterly results, then 1 month cum-entitlement, and payment 1 month after that.
Jordy
post Oct 21 2010, 11:40 PM

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QUOTE(ronnie @ Oct 21 2010, 11:29 PM)
Where can we find out which month each REIT's dividend payout within 1 year ?
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ronnie,

Today's StarBiz with Ooi Kok Hwa.
monkeyking
post Oct 22 2010, 04:43 AM

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icon_rolleyes.gif SOMETHING TO TAKE A CLOSER LOOK....



thumbup.gif What is REITS and how to get monthly dividend payments from it rclxm9.gif



icon_rolleyes.gif Personal Investing - By Ooi Kok Hwa

A LOT of investors, especially senior citizens, are hoping to get consistent and regular dividend payments from stocks.

In this article, we will look into constructing an investment portfolio, which consists of real estate investment trusts (REITs), to get monthly dividend payments.

A REIT is a real estate company that pool investor funds to purchase a portfolio of properties. Normally, it has two unique characteristics: investment in income-producing properties, with almost all of its profits distributed to investors as dividends.

From the table, based on the latest stock price (as at Oct 18) and on assumption that the same dividend payments will be paid over the next 12-month period, almost all REITs will provide about 7%-8% dividend yields. Based on our observations, most of the REITs will try to pay higher dividends over the years. Hence, if the overall economy continues to recover, some REITs may pay even higher dividends for the coming few years.

Due to them only listing at the middle of this year, we have excluded CMMT and Sunreit.

As mentioned earlier, a lot of retirees would like to invest in investment assets that can provide a consistent and regular dividend income. Therefore, we think that REITs can provide a good alternative to the retirees. From the table, except for Arreit, Atrium, Axreit and Hektar, all other REITs will make dividend payments twice per year. Most of them will pay their dividends in the month of February and August. Hence, if an investor would like to receive his dividends other than the above two months, he may need to diversify their REITs into holding many types of REITs.

Based on the list of REITs in the table, we can see that, except for the month of January and April, dividend payments were being made at different months throughout the year, thus investors can receive a stream of dividend income by buying into different types of REITs.

Investors can build a REIT portfolio consisting of a few REITs which make dividend payments at different months of the year. The following is just one of selection options available for consideration.

Based on the current price dated on Oct 18, assuming that the same dividends will be paid in the next 12 months, a portfolio with AMfirst, Arreit, Atrium and Hektar can generate a dividend yield of more than 8% (see table). Besides, by buying with equal amount into these four REITs, investors can get dividend payments for almost every month, except for the month of January, April, July and October.

Nevertheless, investors need to understand that the above selections are solely based on the assumption that these REITs will reward investors with the same dividends and pay during the same month as shown in the table above.

We also understand that apart from the above four REITs, some other REITs may reward investors with even higher dividend payments



icon_rolleyes.gif SOURCE:

http://biz.thestar.com.my/news/story.asp?f...28&sec=business


monkeyking
post Oct 22 2010, 04:50 AM

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QUOTE(monkeyking @ Oct 22 2010, 05:43 AM)
icon_rolleyes.gif SOMETHING TO TAKE A CLOSER LOOK....
thumbup.gif What is REITS and how to get monthly dividend payments from it rclxm9.gif
icon_rolleyes.gif Personal Investing - By Ooi Kok Hwa

» Click to show Spoiler - click again to hide... «




whistling.gif But then here a rebuke from boyboycute...



icon_question.gif shakehead.gif rclxub.gif
QUOTE
Thursday, October 21, 2010
Why bother investing in Malaysian REITs?
Today, i read an article on The Star by Mr. Ooi Kok Hwa regarding REITs. Take a lot at the article here.

What makes me furious is that Mr. Ooi who is an investment adviser and managing partner of MRR Consulting,has misled the public by not discussing the real issues in Malaysian REITs(MREIT).I guess a consultant is still a CONsultant.

MREIT is full of crap properties.If you look at their portfolio,most of these properties are actually dumped by developers/owners since they cannot sell their buildings in the market to professional institutional investors.For example,SUNWAY REIT (which i wrote earlier) is one of them.Creating a REIT is the best way for developers/owners to either 'sell their building at higher valuation' or 'unload their poor quality properties to the market'.

Most of analysts would reasoned that the owners of the buildings which are pumped into REIT want to raise fund to capitalize other opportunities.But these crooks can actually refinance these buildings.So,why go through the hardship to create a MREIT?Because the bankers refuse to refinance these properties at crazy valuation.

So,these crooks will repackage their buildings by bringing in tenants through creative leasing contract to boost the rental income.Property manager will help to make up their properties so that the net operating income is marketable.There are a lot of ways to tweak the buildings to improve the performance for a few years.

Some developers actually treat their own REIT as a dumping site.If they want to sell their buildings at higher valuation,they can pass it to their own REIT.Who cares if the total office space in KL has reached its oversupply condition.Just build them and sell to their own REIT!It's a fool proof business model for developers.

MREIT is very far away to be compared to the actual REITs in US,UK and Australia.In these countries,REITs can directly involve in property development and become a developer.They can leverage up to boost great return for their investors.

Which type of REIT is better for investment?
1) A REIT which buys land,construct the building at cost,sell some % and keep some for recurring income and manage & control the building management.OR
2) Just like MREIT,which have to buy properties at market value from some crooks and manage it for recurring income?

Generally,REIT is very liquid but that only applies to overseas REITs.Whoever said MREIT is liquid must be copying his work from some foreign article without using his brain.A quick check with the MREIT's daily volume will show you the reality.MREIT is so illiquid and you may have to sell at loss, below their NAV to get back your $$$.Compare to MREIT,you may find more liquidity investing in an actual condominium next door nowadays.

My 2 cents-->If I want recurring dividend,i would rather buy BJTOTO.Low cost and simple business model which will still makes $$$ when you let an idiot run the company.





icon_rolleyes.gif Your feedback please......thank you all.



Cheers to all.


kuekwee
post Oct 22 2010, 09:09 AM

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If I buy REIT at SG market, do i get dividend?
Hansel
post Oct 22 2010, 12:54 PM

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" These crooks will repackage their buildings by bringing in tenants through creative leasing contract to boost the rental income. Property manager will help to make up their properties so that the net operating income is marketable. "

Going by the above statement, I don't see a problem if the building can be rented out and provides operating income to everybody - management and investors alike. But is this income sustainable ?

What are the other weaknesses ?
yok70
post Oct 22 2010, 01:38 PM

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QUOTE(Jordy @ Oct 21 2010, 10:29 PM)

That is correct, the highest close yet. With such good quarterly results and revaluation, no wonder the price surged that much. The results indicate that they still owe us 0.95 cents in dividend (out of a 4 cents dividend). Doesn't sound bad at all, considering the enlarged UIC.

Just for the record, 4 out of my 5 counters did extremely well today, giving me a paper gain of RM4,700 for today. I have not seen such a huge daily gain in my portfolio since 11 years ago. I am extremely satisfied biggrin.gif
*
wow! RM4,700 for a day! congrats!! rclxms.gif
mind to share what's your capital? but don't worry if don't wish to tell lah. laugh.gif

jasonkwk
post Oct 22 2010, 01:39 PM

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# reg. monkeyking's post

I don't give a damn what the REIT insider doing, dumping shitty properties, overvalue properties.... bla bla bla. Who cares anyway? There are so much things to worry in this world, this is the least I would concern about,

At the end of day, just SHOW ME THE MONEY in term of quarterly dividend. NO MONEY NO TALK. IF the dividend is dropping every quarter, just sell it off. All the MREIT are giving minimum 6%PA return, so much better than FD, of course you dun compare to normal stock like KBUNAI, that shoot up 300% in 1 week

But one thing is true in the article, MREIT are illiquid. volume will only shoot up when MREIT is declaring divident, the volume will keep raising until EX-date, after that it won't move like a dead stock.
yok70
post Oct 22 2010, 01:41 PM

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QUOTE(jasonkwk @ Oct 22 2010, 01:39 PM)
# reg. monkeyking's post

I don't give a damn what the REIT insider doing, dumping shitty properties, overvalue properties.... bla bla bla. Who cares anyway? There are so much things to worry in this world, this is the least I would concern about,

At the end of day, just SHOW ME THE MONEY in term of quarterly dividend. NO MONEY NO TALK. IF the dividend is dropping every quarter, just sell it off. All the MREIT are giving minimum 6%PA return, so much  better than FD, of course you dun compare to normal stock like KBUNAI, that shoot up 300% in 1 week

But one thing is true in the article, MREIT are illiquid. volume will only shoot up when MREIT is declaring divident, the volume will keep raising until EX-date, after that it won't move like a dead stock.
*
for small player like me, liquidity is never my concern. I never have the money to buy all that in the queues anyway. blush.gif


Added on October 22, 2010, 1:45 pm
QUOTE(teehk_tee @ Oct 21 2010, 11:36 PM)
mreit.reitdata.com
it's probably the most complete database.

how i count is i take their quarterly results, then 1 month cum-entitlement, and payment 1 month after that.
*
One thing I don't like about mreit.reitdata.com is that they don't update the NAV much, most probably using the half year ago or even last year's NAV, which makes the yield figure inaccurate. smile.gif


This post has been edited by yok70: Oct 22 2010, 01:45 PM
TScherroy
post Oct 22 2010, 03:01 PM

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Yes, reit can be a place for dumping properties, so does ordinary listed IPO. We have seen many IPO, major shareholders treat it as dumping site as well.
But we can't say it must be across.
If worry about cooking the book, ordinary listed company has even higher risk.

I don't mean reit is a safe place to be, just for any investment tool, there is every chance people taking advantage of the situation. Even some receivable in ordinary listed compoany account also can be fake.
At least rental collected must be real hard cash, if not, it is very easy to spot, as reit needs to distribute >90% of the income, if the rental is not collected and in cash form, very easy to spot.
Unlike ordinary company, sometimes, it is not easy to spot or pin-point something fishy before it is too late, as reit account is more straight forward while ordinary company operation can be very complicated.

If feel fishy and uncomfortable with the valuation, then just avoid it. icon_rolleyes.gif


smartly
post Oct 22 2010, 06:39 PM

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QUOTE(cherroy @ Oct 22 2010, 03:01 PM)
Yes, reit can be a place for dumping properties, so does ordinary listed IPO. We have seen many IPO, major shareholders treat it as dumping site as well.
But we can't say it must be across.
If worry about cooking the book, ordinary listed company has even higher risk.

I don't mean reit is a safe place to be, just for any investment tool, there is every chance people taking advantage of the situation. Even some receivable in ordinary listed compoany account also can be fake.
At least rental collected must be real hard cash, if not, it is very easy to spot, as reit needs to distribute >90% of the income, if the rental is not collected and in cash form, very easy to spot.
Unlike ordinary company, sometimes, it is not easy to spot or pin-point something fishy before it is too late, as reit account is more straight forward while ordinary company operation can be very complicated.

If feel fishy and uncomfortable with the valuation, then just avoid it.  icon_rolleyes.gif
*
i concurred with your view. reits companies are easy to spot when they are hanky-panky with thier account because they are dealing with real cash.
at any q if they failed to deliver dpu then something must be gone wrong.
whereas, ordinary listed company can fake the account easily, typical example is TRANMIL. could be even more deadly than reits if both were to fraud.
Jordy
post Oct 22 2010, 08:02 PM

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QUOTE(yok70 @ Oct 22 2010, 01:38 PM)
wow! RM4,700 for a day! congrats!!  rclxms.gif
mind to share what's your capital? but don't worry if don't wish to tell lah.  laugh.gif
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yok70,

Of course I can't reveal my capital, but thanks.
SKY 1809
post Oct 22 2010, 08:09 PM

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QUOTE(jasonkwk @ Oct 22 2010, 01:39 PM)
# reg. monkeyking's post

I don't give a damn what the REIT insider doing, dumping shitty properties, overvalue properties.... bla bla bla. Who cares anyway? There are so much things to worry in this world, this is the least I would concern about,

At the end of day, just SHOW ME THE MONEY in term of quarterly dividend. NO MONEY NO TALK. IF the dividend is dropping every quarter, just sell it off. All the MREIT are giving minimum 6%PA return, so much  better than FD, of course you dun compare to normal stock like KBUNAI, that shoot up 300% in 1 week

But one thing is true in the article, MREIT are illiquid. volume will only shoot up when MREIT is declaring divident, the volume will keep raising until EX-date, after that it won't move like a dead stock.
*
Well IF any of the reits THAT going into cashflow problems, then probably you would the FIRST PERSON who wants to know why why why , just joking only.

In today world , you cannot say it is 100% guaranteed that a corporation would not fail.

Too big to fail might not work anymore.

REITS are imposing higher rental rates though businesses in many places are still sluggish.

many established ones are downsizing or shifting out to less expensive areas.

This post has been edited by SKY 1809: Oct 22 2010, 09:15 PM
lytros
post Oct 25 2010, 08:42 PM

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Wow! Check out Tower Reits today! +0.04 @_@. Dividend announcement soon? hmm.gif
cwhong
post Oct 26 2010, 01:15 AM

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QUOTE(kuekwee @ Oct 22 2010, 09:09 AM)
If I buy REIT at SG market, do i get dividend?
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wah, nobody reply this so i reply loh. Answer = YES and tax exempted icon_rolleyes.gif
SUSwankongyew
post Oct 26 2010, 01:24 PM

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QUOTE(yok70 @ Oct 22 2010, 01:41 PM)

One thing I don't like about mreit.reitdata.com is that they don't update the NAV much, most probably using the half year ago or even last year's NAV, which makes the yield figure inaccurate.  smile.gif
*
Huh? That doesn't make sense. Surely the yield is based on current price. My quick calculation confirms that this is so. NAV is only used to compare the current price to the estimated value of its assets, I thought?
kuekwee
post Oct 26 2010, 03:39 PM

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QUOTE(cwhong @ Oct 26 2010, 01:15 AM)
wah, nobody reply this so i reply loh. Answer = YES and tax exempted  icon_rolleyes.gif
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so i need to open account with sg securities...then dividend they sent to malaysia?
Spectreoutreach
post Oct 26 2010, 03:43 PM

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Just wondering is any differences *pro & cons* in opening a Share Trading Account or Margin Trading Financing (MTF) Account (maybank) to buy REIT counters ? thanks


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