But this is a characteristic that is being observed everywhere, in Sgp REITs too, where the price remains behind the NAV most of the time. This trait is very much unlike other normal listed companies.

We need to know why, as we are just aftermath of greatest financial crisis, that cause a lot of oversea reit meltdown, so skeptic on reit is still everywhere.

While currently, economy is seems to be stalling, and people only willing to buy reit at discount rate. Nobody want to pay a premium on them as some investors may still scare about the market.

If flip back prior before 2008 crisis, reit was trading at premium mostly because the properties market looks rosy.

It is about investors risk appetite and optimistic about properties and particular reit sector.

Cherroy, thank you. Well, on my part, I see many REITs, more so in the SG market, traded below their NAVs even before the crisis. Save or one or two, which traded above NAV, most are below.

Can't comment much about the local market though, have not followed that closely.

You need to look on yield issue to compare with as well.

For eg.
A reit with NAV 1.00, but DPU only 5 cents. Little people want to buy this reit above the NAV, as yield is not attractive at all if above NAV level.

Ans : Agreed ! I do the same too.

B reit with NAV 1.00, but DPU is 10 cents, most investors willing to pay above the NAV to get this reit, and yield is attractive.

Ans : Agreed ! I do the same too.

Do remember, NAV is adjusted upwards due to property revaluation, but yield/rental wise will remain the same until there is renewal of lease with upwards revision on the rental rate.

Ans : Agreed on the whole, but there is still another way whereby a REIT can collect more rental, ie if the REIT makes an acquisition which is yield-accretive, and the interest paid (if the REIT chooses to use debt to fund the acquisition) is less than the rental collected. Then, rental-wise, it will go up.

Reit price moves more towards on yield issue as compared with NAV.

Ans : Well, I look at the NAV too for safety factor.

who are "they"? many reits still trading below NAV.

they are any REITS.

they dun have to issue new shares to buy new properties, they can make term loans etc.

lets assume Qcapita market price rm1.03 and NAV is rm1.21. they want to buy a new property at rm50m.

so ... they can buy the property using loan of rm50m.

in the balance sheet, assets will be plus ~ rm50m and liability will also be plus ~ 50m too. This will results in NAV still maintain at same price @ rm1.21.

they are any REITS.

they dun have to issue new shares to buy new properties, they can make term loans etc.

lets assume Qcapita market price rm1.03 and NAV is rm1.21. they want to buy a new property at rm50m.

so ... they can buy the property using loan of rm50m.

in the balance sheet, assets will be plus ~ rm50m and liability will also be plus ~ 50m too. This will results in NAV still maintain at same price @ rm1.21.

They can just take on more liability to buy assets but they usually dun do 100% debt financing. Otherwise, their gearing will sky rocket. They will do mixture debt and equity financing.

I bought Amfirst, SunReit and Qcap within these 2weeks.. Anxious for my virgin dividend..

The one I eager to know is Stareit, aka their Q report without Starhill & Lot 10, and new properties injection.

I want to buy more. 

The one I eager to know is Stareit, aka their Q report without Starhill & Lot 10, and new properties injection.

I want to buy more. 

I bought SUNREIT too...but this counter seem like wont move... and 1 year only give 7%.....

We follow taikor 

The one I eager to know is Stareit, aka their Q report without Starhill & Lot 10, and new properties injection.

I want to buy more. 

follow follow 

Buy SUNREIT !! Sure wont regret !!
The most largest asset in malysia !! I think nx year sure RM1.30 !!