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.

maybank and rhb recommend Axis and AmanahRaya REIT. But if looks at the yield return record, UOA and Tower are winners. For bargain buy, Tower is the most undervalue REIT.

Hmmm....should buy which one eh?

Bro, I mean the dividend per unit figure not the Gross dividend yield. I check at thestar dividend history for all the counter and there is always a shortfall of 1-2 sen from the dividend per unit

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.

Thanks for your advice!

Most research houses give good rating on Axreit, due to
1. it is the one that constantly grow their asset base and diversified. It is the one that seen most "hardwork" in growing their asset base.
2. DPU is on the upwards trend looking from long term, as new injection of properties mostly contribute positive to the company earning despite with private placement.
3. Asst is not limited to a few properties, and have range from offices to industrial.
4. Share liquidity is ok, whcih fund managers find little difficult to buy and sell.
5. Properties generally located in good area.

Having said that, at current price of RM2.00, I view it is about fully value already for near term.

What you think of sunway? OSK yesterday said it might give out the lowest DPU compared to all other. They estimate that sunway Dividend yield to be around 6.3% only

Personally, I will sit out the IPO and wait the market price to adjust itself and see how afterwards.
As 6.x% is not attractive enough.

IPO is rather weak across lately. So I don't expect market to trade at premium to its IPO especially consider that it only carries 6.3% as you mentioned.

Just my personal view.

I agree with you since starhill and amanah reit is also offering around 8% and only cost around 0.8 per uni. However i am going to buy some small lots of sunway in hope of capital appreciation

Agree with you.
Unless Sunway offer 7%+, it won't be attractive enough.
Every REIT IPO offering less than 7% will dip for some time.

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

That's reassuring. I cant seem to find the IPO price for all those REIT. Is there any way i can check them?

idunnolol,

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

I knew roughly some in my memory.

Axreit start off around 1.50-1.60, if not mistaken, this can't remember accurately
Qcapital around 0.8x-0.90
Amfirst 1.00
Stareit around 1.02 or 0.99, forget a bit already
Atrium 0.99 or 1.00.

I stand for corrected as this is somehow can straight away retrieve from my memory one.

But Sunway Reit probably may start off with a few cents premium if IPO is good and manage to find many cornerstone instituitional investors to support it. As Singapore investment arms, PNB, EPF and some insurance fund also potential to become the cornerstone investors of it.

I forsee may be start off with flat in IPO and a little few cents above IPO, then as time goes on, probably ease off to around 7% or more yield unless the reit can improve their earning and DPU and show high potential in rental revision upwards afterwards.

Just my personal opinion though.

http://investalks.com/viewthread.php?tid=123&extra=page%3D1

I uploaded the comparisons and IPO price there.
If you are interested, just download it.
I'm not allowed to upload it here.

Hi, I'm newly entered into stock market. So, would like to start with REIT. Originally like to get AXREIT, but the price is too high.

Anyone have any comments on HEKTAR & STAREIT? Still good buy? Thanks.

Cherroy,

we can see/obtain IPO price at the following website. just select counter at top
http://www.shareinvestor.com.my/tools.pl?i...ction=factsheet

atrium 1.05
axreit 1.25
hektar 1.05

cheers

This post has been edited by Muliku: Jun 7 2010, 10:59 AM

guys, is sunway reit a shariah-compliant counter? i cant find any info about this. i hope that u can help me.

thanks

Let's jump out from REIT investor's POV and look at Sunway REIT's listing.

The way that Sunway Group wants to start off Sunway REIT is as below:
i) Sunway sells some of its assets to Sunway REIT.
ii) Sunway REIT gets investors to subscribe their units to finance the purchase.
iii) Sunway REIT pays Sunway Group, Sunway Group gets the money.

My doubt is on the intention of Sunway Group, they sell off their assets within their group (even though the management might not be the same).
Is the valuation going to be true and fair? In Malaysia valuator can be manipulator, they are paid by fees.

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.