jasonkwk,

No. In fact, the price is lagging the market. While fundamental is intact and prospects growing, the market will definitely follow suit.

It is not about the education or the knowledge of REITs (as I believe anybody who reads StarBiz would have understood REITs by now due to the coverage). It is more of the mindset of most Malaysian traders. They want quick profits, therefore they resort to trading.

Among my friends and investors, I can safely say that I am the only one investing for the long term. Even my mother was reluctant as first, but after my convincing, she eventually wanted to give REITs a try.

de.crystal,

Dijaya Corp is not a Real Estate Investment Trust. It is just a normal property developer-cum-property leasor. So I think it is not suitable to be discussed in this thread.

de.crystal,

If you look at the newspaper or Bursa's website, you will notice a sector named "Reits".

kmarc,

Sorry to interrupt. The business for REITs are in leasing out properties, and that is its ONLY business. Since the income for REITs is more or less stable, why would you want to trade it (buy and sell like ordinary stocks)? It is only when the income is not to your expectation that you should sell the counter and reinvest your money somewhere else. The longer you accumulate the distributions, the more you will gain. This is what we call profiting by holding.

By the way, you will not forget your REITs counter because you will be receiving the cheques every quarter

Molotov Cocktail,

As with any other investments, you divide the distribution by the current price. So if you want 9% yield, the price would be between 1.60 - 1.70.

idunnolol,

You take the ANNUAL distribution of the counter and divide it by the price. I don't see why you can't get the yield figure.

kfkok,

We don't only look for yield when investing in REITs as there are various negative reasons as to why the yields are high (i.e. bad performance, poor management, making unpopular decisions, etc). So, the only way is to choose counters which are stable and with high growth potential.

idunnolol,

Perhaps the figures shown are net DPU.

idunnolol,

Most REITs are still trading below IPO price mind you. So, I think it is not a good choice to buy SUNWAY in "hope" for capital appreciation. If what you mentioned about the 6.3% yield is true, then the price WILL definitely go downhill to meet a more acceptable yield (which is in the range of 7% - 8%). So buying during IPO in hope for capital "depreciation" is more like it

idunnolol,

Look at their respective annual reports. They will have the IPO price stated in the fund information page.

kbandito,

It is a norm to see RPTs in REITs, as REITs in Malaysia are not allowed to develop their own properties. Therefore most of these REITs would "purchase" their properties from property developers (which could be their related companies). We would not know the true valuation for their properties, but we can measure the feasibility of the purchases through the yield generated by the newly injected property. If the yield seems fair, then we can assume that the valuation is fair.

gark,

How is the cash raising exercise bad if the cash are to be used to increase the fund's NAV? Is private placement worse than taking in more gearing?

Not to mention also it is along Gurney Drive, a sure-fire place to attract tourists. But you should know more

Molotov Cocktail,

I am not an expert valuer, but from my understanding, since Alaqar's properties are specialised buildings (i.e. can be used ONLY for a certain purpose), I believe that its properties will have limited opportunity for appreciation, therefore limiting their income growth.

This is just my opinion, which could be wrong.

This post has been edited by Jordy: Jun 19 2010, 12:14 AM

xuzen,

KPJ may be doing well, but the rental income is tied to the value of the property. So if the value doesn't appreciate as much, I don't see any reason KPJ would want to increase the rental for the property.

My 2 cents.

Xuzen,

I have given the reason why it is rated low.

idunnolol,

When a building needs conversion, it takes a lot of effort on the purchaser's part. It would be more cost effective to build a new building from scratch. Who would want to buy a hospital building just to convert it into a usable building, when all other buildings are available widely? We are not in Singapore.

As cherroy mentioned earlier, the earning potential of KPJ does NOT affect the earning of Alaqar or the property's value. Property is valued based on demand. If there is no demand, the price would be stagnant.

idunnolol,

That is reusing the old shoplots, but in this case, it is the other way around. You should take note that the structure for specialised hospital is different from that of a normal property. If I were going to buy a hospital to be converted into an office building, I really don't know what would I use the mortuary for.

idunnolol,

Well, finally cherroy hit you Whatever I want you to realise has been said by cherroy. As REIT holders, we must look long term and look for the catalyst for rental yield improvement. When we deal in properties, we need to think in terms of demand, and not potential. They are different.

-Teddy-,

If I am not mistaken, you are Vincent aka [GM]Teddy? Do you have a CDS account currently? Yes, you'll need a CDS account to start with REITs. There was once a blog which tracks mREITs, but I think it has been shut down now. I had a mentor when I first started, which was myself. There is no better lesson than making mistakes yourself and learn from it. I lost twice in the stock market before I learned how to trade intelligently. Now my money keeps growing.

As long as you have a CDS account, you can start trading REITs just like any other stocks online.

-Teddy-,

You used to know me and a female friend of mine who worked in my cybercafe, but have not met me in person. I used to host Ivalice if you still remember

That is right, you will have to be in it to learn it. There is no use reading books or look for online information as you will learn nothing. To invest in REITs, all you need is common sense. Be sure you know what properties they are invested/investing into, and then use your common sense to evaluate the potential. Of course, you will also need to have some basic knowledge of the forces of property price movements.

idunnolol,

I have only visited the blog twice, but I know it is trustworthy as it is only reporting facts and figures, not recommendations or research.