For REIT's you don't need to see PE, because PE can be distorted by valuation gains, which you can see but not touch.

DY is the better term to compare the performance of REITs, and also DY growth & Gearing. Other than that PE, BV, cash etc hold not much value.

This post has been edited by gark: Jul 25 2011, 07:07 PM

AXREIT really goreng, +7 cents after announcement.

Aiya bro Gark, i'm a typical kiasi Cina beng mar. All other investments and trades can see P/E - this one buta buta elek, chicken shit lar, especially when this happened to Shell several years back. Floor may be full of feathers

The more info / data, the better heheh

This post has been edited by wongmunkeong: Jul 25 2011, 08:10 PM

Yeah, since last 2 weeks, it price was up and up actively .

Axreit income dropped 10%? Anyone know what's the reason?

I think one of the reason is due to loss on the disposal for one of the property .

What Tee and Gark said is true - REITs may need different types of ratios and parameters to value, even share counters in different sectors and different industries call for different financial ratios.

For REITs - yes, basically it's DY, but I look at EPS, Cashflow (which takes into account gearing or Debt-to-Equities Ratio) and Occupancy Rate too.

Tee said the system calculates P/E as Market Cap over Net Profit. But;

1) P/E = Share Price over Earnings, and,

2) Market Cap = Share Price x Number of Shares in circulation

Hence, how did we derive P/E by using Market Cap over Net Profit, and a side question would be : is Earnings = Net Profit ?

Wah.. you buy based on your platform's PE ah? That is very very dangerous, often the PE shown on the platform is not accurate. You have to read the P&L sheet. There are many items such as one off gains, revaluation, currency difference etc which affect the PE. Never buy any stock based on platform PE, read the P&L.. and especially operating cashflow and then conclude your PE.

This applies to all stocks and not only REIT's.

This post has been edited by gark: Jul 26 2011, 02:38 PM

Where got drop?

Operating incom/profit still rather steady.
Last year got revaluation profit so can compare like that.

When assessing profit figure time, always look at operating profit.

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Added on July 26, 2011, 2:50 pmDo not rely on any ratio published in media, or any platform.
Count your own.
Many are not updating fast enough.



This post has been edited by cherroy: Jul 26 2011, 02:50 PM

Different platforms, different P/E calculations mar - i aint suicidal.

P/E on the platform's just one of several things i look at. If all else being equal, i'll take the lower P/E thank U very much . Born the day BEFORE YESTERDAY (watashiwa not too bright but a bit brighter than the fellow born yesterday)

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Added on July 26, 2011, 3:08 pmBoss Cherroy - agreed.. unfortunately time's not on my side. Thus, for me most ratios are taken at "book / screen level" only - i process only the historical EPS, PER and ranking them ratios (sounds like brewing a witch's cauldron ) to create a filter list + decide what's the value i'd buy at.

Heheh - my only saving grace is i do check from at least 3 sources/platform + at least 3 years' historical data (if not more), U know them accountants lar - cooking by them, interpreting by them, buta buta come up with more disclosures and weird calcs also by them At least they cant play much with 3 or more continuous years' of data (eg. ROE spikes due to asset liquidation).

This post has been edited by wongmunkeong: Jul 26 2011, 03:10 PM

There are many things to consider other then PE, if just taking the lowest PE to be the best bet, then don't you think anyone also can invest successfully. Heh, I never once before used the PE is the media or platform as a guide, as they are often misleading.

BTW, saw your blog. You a fellow SJ'er?

This post has been edited by gark: Jul 26 2011, 04:26 PM

My advice,
Do not use PER to screen all the stocks out there and find out stock or choose stock to invest solely from the PER ratio.

Familiar the stock you are targeting on.

Some may have low PER, due to some reason, like distrust on the financial report/management, or various kind of reason.
Some have high PER, due to premium investors willing to pay for the stock, due to strong confidence about company future, prudent management etc.

If PER is the concern, I can bet red chips out there have the lowest PER until you can't believe, single digit, PER 5x, 6x, also got.
So based on PER, they are good to buy/invest?

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Added on July 26, 2011, 4:47 pmSolely using PER to invest can lead one into dead end.

In a good market, or bull market.
Good stocks generally may not be cheap across.
Cheap PER, may not a good stock.

A & B in similar industry, but business wise segment can be different.
So A has PER 14, B has PER 15.
Invest in B better?

No, we never can conclude such thing.
A may have better cash flow than B.
B can do business more in credit term, or B's customers can be weaker than A, resulted high receivables and weak cash flow in B book.

This post has been edited by cherroy: Jul 26 2011, 04:50 PM

Yup yup - P/E's like "last few" stuff as consideration, not the main ones.

Hhehe - U mean the blog on saline drips?
Yeah - SJer, moved there in end 2007, nice place but a bit pricy (food-wise) VS PJ SS3 & Setia Alam.

This post has been edited by wongmunkeong: Jul 26 2011, 05:38 PM

is KrisAsset a good investment? sadly its not a REIT but something like property trust/holding company i think

Whoa.. long one . Yup yup - suicidal lar if solely OR mainly based on PER.

FYI. my main filters are past 3 years (or more) ROE, D/E, Cashflow, Gross Margins, Stockholders' Equity growth rate, Sales growth rate. Then ancillaries are several years' of DPS vs EPS (to see payout ratio vs kept ratio). Finally, if all else "nearly the same" during a particular time segment, i'd take the lower current P/E lor

I see, well I have been there since 20+ years ago, so I am old timer SJ'er liao, used to be super cheap, ulu kampung place, but now....

Back to topic, the only REIT with reasonable growth is AXREIT, so I am monitoring diligently.

This post has been edited by gark: Jul 26 2011, 06:21 PM

The REIT with unreasonable growth --> SUNREIT

Both SUNREIT & AXREIT - painful lar if looking for DY% (div paid vs cost paid) .

AXREIT on my filter but so far, DY% wise, TWRREIT, BSDREIT seems to be leading (hehhe - note, i'm vested already in these 2).

thanks for the finding!

Axreit Q distribution now is about 4.x cents.
If we take 4.5 cents, annualised is 18 cents.

18/2.55 = 7.06%, which is about reasonable yield with a reit constantly showing growth and more dynamic in injecting new and good yield properties.

Somemore Axreit is more diversifed across, from commercial, office space to industrial.

While for Sunreit, yes, the yield is lower compared to others around 6.5%, same with CMMT.