So des kah. Since DY% is already a % of the current price and assuming it's the current price U buy in:
IF price bought in $1.09
AND gross DY8% at that price
AND U bought in with $3,000 at the above time
Gross DY expected = $3,000 * 8%
Net DY expected = $3,000 * 8% *(100% -10% tax)

Note that your calculation was based on Units and mine was based on transaction $. I'm assuming U are calculating EXPECTED gross & net DY. Of course when U really receive the $, U then calculate yr actual DY% using:
a. Simple net DY%: Dividend Received / Total Cost of Transaction

b.DY% pa:
( (Dividend Received + Total Cost of Transaction) / Total Cost of Transaction )
^( 1 / ( (Current Date -Purchase Date)/364.25) )
-1
Derived from the ever handy S = P *(1+%)^years

---

Added on August 5, 2011, 11:18 amHmm - seems like knocking on wood worked! BSDREIT and ARREIT down to my target price this morning bwhahaahah UNFORTUNATELY several other counters also down

This post has been edited by wongmunkeong: Aug 5 2011, 12:10 PM

Now is the time the REITs will be seen as its true value...time to collect the dried notes for shopping...

Thank for your explanation. Much clearer now. I have a question. If I buy at stock price 1.09, if it increase to 1.50. I sold it out. Assume I buy 1000 units. So, I earn 1.50*1k - 1.09*1k = RM 410 without deduct transaction fees. Is it correct? So it works exactly like stock also? But Reits just a much steady compare to stock. Also, the DY is much higher as well? Other advantages?

This post has been edited by goo5257: Aug 5 2011, 10:11 PM

You're spot on with the profits. REITs are just a type of stocks leh - traded on the same market and method

+DY% is USUALLY higher (some are lousy like normal stocks')
+thus prices are usually steadier
-thus unfortunately prices are usually steadier, it doesnt fall and rise as much as normal stocks

IMHO - the flux in normal stocks' price is what gets the gold, whereas the DY% in REITs keeps U nourished
If stocks' price dont flux, how to buy low & sell high?

FYI - from end 2008 / early 2009 after the recent 40%+ KLCI crash,
my REITs are making me only 20%+pa
VS
normal stocks like LPI & PBank which is making me 30%+pa to 50%+pa
all held till now - total returns (cap growth, splits, etc + dividends received)

Honestly, I really spot on the profits only. I believe everyone do that also. Haha...The REITS stock price wont change much even after one year or more? I observe it few days ade. Seems like got increase few cents. But I not sure whether it will drop down again. Recenyly market too lousy. It makes me feel scary and not confident. So not dare to play stock. May be invest REITS enough lol...

I also wish the price wont change much but its traded like shares, it can go wayyyyy down too

Use-less statistics of the day:
end 2008 early 2009 (bottom-ish of the crash & stablized), TWRREIT was at $0.85 to $0.90 with gross DY% of 10% (as shown on HLeB's DY% column)
VS
now 2011 TWRREIT last done on last Fri DJ crash was at $1.28 with gross DY% of 8% (as shown on HLeB's DY% column)

a. Seeing the $, whoa.. can drop like 33%+, calculated ($1.28 -$0.85)/$1.28

b. (a.) is unfair view
TWRREIT's highest was $1.43 before the 2008 crash and $0.83 at the bottom, thus taking the peak & bottom, that's 41%+ drop

c. A different view would be that at the bottom-mish, gross DY% was 10%-11%ish.
Now at a "peak" (dunno how high it can go yar), its gross DY% is 8%ish, still looks good to me (to hold)

Now where's the fler who was asking ppl to sell off office REITs, quick lar, crumble the price ASAP. Dumbass value investor here wants to buy in at right price here

This post has been edited by wongmunkeong: Aug 7 2011, 07:19 AM

The office space concern is real.
As supply pace is faster than demand at least for the near future.

If we see office reit registered lower income, then we can see office related reit price goes lower, to match the expectation yield.

The 2008 crash, was because the fear of severe recession might result in lease cannot be renewed, refinance cost become expensive or difficult to be obtained.
There were reit (particularly overseas) especially those high leveraged one, unable to refinance resulted reit need to fire-sale their asset during the wrong time.

Reit is not a foolproof investment, there are risks involved as well.
Just because we saw reit recover in price and not having lease problem issue, despite the recession, we cannot conclude every reit will surely plunge and recover back.
There were reit that unable to attract tenants, or having difficulty in rental as well, not so good properties in the portfolio resulted dismay income.

I would say, don't be over-confidence.
Every reit performance is not the same. Every properties is not the same. Some properties are selling like hot cake, and tenants easy to find and can good yield.
Some properties may be sitting there, little people interested.
So it is better to evaluate the reit underlying portfolio properties, their location etc.

As even office space may face supply>demand, it doesn't mean all office space rental/lease is totally bad. There are still location people prefer and highly demanded.
Same with boom time, there are still properties that perform not so good during good time.

Agreed! Thus i said i'd pickup at the right price
Everything has a right price and if it's not at a right price, dont lar buy in. Heck, even things like PBank and Nestle - good Co & managed well, but at the wrong price, waffor?

I'm just a simpleton - buy MORE during sales and buy just ngam ngam if ok price, and avoid like the plaque when it's way too expensive. Just like groceries shopping - stockup cow cow during sales AND if it can be kept properly AND it's useful. Else ignore or buy just enough. I'm a "domesticated guy" - what to do bwhahaha.

Quick quick - ask me which airconditioner, washing machine and vacuum cleaner has the best bang for the buck (ie. does the best it suppose to do at the best price of purchase & usage)

Note - i'm just totally cheesed off by the fler making a blanket statement about office REITs AND telling people to sell off. Dude - U have crystal balls ar? If not, dont lar make blanket statements like that - IF THEN ELSE statements good, BUY BUY BUY SELL SELL SELL with general blanket statement is not right. In addition, apparently if there's a sell off, it's not of value to people like me? Again - mana itu logic? At what price point mar, sheesh.

This post has been edited by wongmunkeong: Aug 7 2011, 09:40 AM

Wong Sifu,

You are right.

At time like is to educate the investors to think rationally, and not panicky .

Just my view.

hi every bro here,

what u all think on SUN REIT? stable REIT but with low div yield..

waiting for arreit at 895 can BOH ?

you so tam sam.

Don't La. I need to avg again if drops again . If drop again I wish at 0.88

This post has been edited by CP88: Aug 8 2011, 01:20 AM

Wah Axis drop 10sen today..

Shucks... was busy until now, didn't get to buy cheap cheap REITs....

Oh well, loaded up on some more ARREIT at 90 cents!

Missed Qcap at RM1.00....

This post has been edited by kmarc: Aug 8 2011, 04:40 PM

yea naik balik at 1.02

see achievable market really

as ur wish be granted already u got it? i have had enough of it after few rounds of averaging down..... really hope this is the final stop for average down.

Nevermind. Later on you can look back and said that you bought at the right time (hopefully)