Earthquake and tsunami is also a kind of risk. I would name it as "Catastrophic Risk". I think the delay of Axis Global listing is also due to 2 of the property affected by recent Tsunami / Earthquake and hence both of the 2 property is being taking out of the IPO now.

So can you still say Catastrophic risk is not applicable to REITS? (What happens if few of the REIT property is destroyed in Tsunami? Can you get your dividend? The REIT may only get some general insurance claims if they bought insurance included catastrophic risk.)

This post has been edited by 2010May: Apr 24 2011, 08:47 PM

1 of the example for REIT that almost being affected by landslide 3 years ago.

http://savebukitgasing.wordpress.com/2008/12/05/

lol (luckily nothing happened to the building although the tragedy was just beside it)


This post has been edited by 2010May: Apr 24 2011, 09:58 PM

Malaysia is quite safe but not truly all property safe. Look at the example above and you can see that it can expose to landslide risk.

It is still okay that the REIT having diversified property (different location in Malaysia). So even if the building in Damansara Heights being destroyed should be still not a big problem.

This post has been edited by 2010May: Apr 24 2011, 10:03 PM

Usually property damage due to catastrophic event is not included in usual general insurance because insurance company do not willing to give protection without higher premium. So if a building being destroyed due to earthquake while the company insurance do not include earthquake protection, then the owner of the building will not get any claims from insurance.