LOL, this is wishful thinking.

I don't think so.
It has nothing to do with Axreit actually.
Just another reit that potential being launched and listed by the same management.

Axreit got plenty of properties.
Each property will be revalued for every 3 years once.
So time frame for revaluation of property is varied.

Before ex-date

Some Q, some semi-annual, check their respective history, date roughly the same after Q ended.

Market already anticipated the distribution way before the announcement generally aka price normally creep up before, you don't gain any advantage buying before ex-date.

Based on the news, it should be around June.

Huh?
This still need to ask?

Properties damaged, then claim building related insurance, mostly building do have, even apartment.

All things are susceptible for catastrophic risk even ordinary listed company premise, your own business, your house etc.
This doesn't need to be specific mentioned, it is common sense.

Ok

Another risk one also need to know is also currency risk.

HKD is pegged with USD tightly, So HKD has been depreciated as same as USD.

HKD is one of undervalued currency due to its peg, but don't think the peg will be moved either.
It has been pegged since long time ago, even during 1997 crisis, HK defended the peg fiercely as well.

Semi-annual

This is good indicator, that management has confident on themselves aka to maintain good earning eventually the unit is valuable in the market.

You don't want to be paid in unit if you view your unit won't fetch good price in the market.

As long as the management fee remains the same as previous, aka same amount with previous in cash term one.

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Added on April 28, 2011, 9:44 pmBtw, Atrium 2.15 cents distribution for the Q.

This post has been edited by cherroy: Apr 28 2011, 09:44 PM

First it is Rm0.042, not Rm0.42, if RM0.42, I pawned all belonging to buy tomorrow at Rm2.36.

Yes, all announced distribution figure is before witholding tax.

Every reit won't grow until rental revision become higher.
It is same across.

We see Axreit (or any other reit) distribution grow mainly because of properties portfolio expansion, not because the properties rental become higher (although some did due to rental revision, or new lease) or through higher gearing than previously.

Atrium portfolio staying the same since its first day of listing, so you don't see the distribution grow.

Same with Stareit (before the rationalisation proposal).

Let analyse why sell :

1. Higher interest rate, lead to higher lending/gearing cost of the reit, dragging down the distribution.
2. Difficult of getting tenant after old lease expired, distribution going down. Atrium once lose the tenant on one of its properties, lead to severe distribution going down, whereby drag down the price to 60~70 cents.
3. Properties sector is going to be in bad shape across.
4. Have better opportunities with others by utilising the money proceeded from the sold reit, which yield better than 6-7% yield.
5. Higher FD rate. Reit doesn't provide significant different in yield with FD.

Reit is never the same with ordinary stock whereby profit and dividend can go higher and higher depended how much the company bring in the business, while reit cannot, you have 1 property, the most you can have 1 tenant for the whole property.

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Added on April 30, 2011, 1:13 amUntil or if the interest rate increase affect the refinancing cost or borrowing cost which is not with fixed rate.

Most borrowing under reit is secured with fixed rate for short medium tenure. So until new refinancing cycle take place, we don't see much impact on the EPS eventually DPU.

But interest rate increase mean higher FD rate, which in turn closing the gap between reit yield and FD rate, which make reit less as attractive as before.
But I don't see FD rate is going to increase >3.5-4% for near future even 2-3 years down the road. Just my view though, I could be wrong.

This post has been edited by cherroy: Apr 30 2011, 01:13 AM

Own properties
Pro
- has own control, sell, buy, rent.
- Once sold the property, pocket all the realised gain.

Cons
- troublesome, collect rent may not as simple, all depended on luck on tenant
- Generally lower yield, residential is lower yield than reit (commercial property)
-
Reit
Pro
- Easy, simple, don't need to deal with troublesome tenant
- Can buy in block, has 5k, invest 5k, has 10k invest 10k, can liquidate whenever your like, while own properties cannot have this luxury. C

Cons
- has no control on the property
- subjected to market risk.

Personally, I preferred reit over own properties because :
1. Don't need to deal with hassle tenant, property issue
2. Liquidity issue.

But reit has one distinct disadvantage, ie. unit reit price can way below the real worth of the NAV.

If you intend to sell and compared the yield, use the existing price or current yield for comparison.
Purchase price yield is irrelevant now.

The yield is based on purchase price, but once intended to sell at existing price, we need to use existing price/sold price yield for comparison.

Eg. you bought A reit at 1.00, DPU is 15cents, yield is 15%.
But now A reit is 3.00, the yield now is only 5%.

If FD rate now is 6%. Your 3.00 sold price will get 6%.
FD rate win in this scenario and being preferred.

Paper gain or not is irrelevant now, as you want the money to chase for yield or working as hard as possible.

Sorry, I no update on Sunway, based on what you posted, then it is quarterly basic already.

Reit can change distribution period from time to time. But semi-annual is a min requirement, (if not mistaken).

No, it is the same whether semi-annually or quaterly for yield calculation on reit front.

The compounding effect from quarterly distribution, which let us to reinvest is very minimal, and trivia.

Reit yield generally is a little higher than normal stocks except a few high dividend stocks.

A yield of 7%, not many ordinary stocks out there can offer such a dividend yield.

You need to consider it is a quarterly basic, aka x4 for annual yield you are getting.

Anyway, Sunreit yield is a bit lower than other, net yield (after witholding tax), is around 5.5~5.8% only.


This post has been edited by cherroy: May 5 2011, 08:52 PM

Not actually.

For office space, yes for near future 2-3 years time, yes.
For residential market, supply = demand at the moment.
Whether the demand is speculative demand, this is different perspective.

Do remember once the property market slow down, developers generally cut down the supply.
Supply can be elastic one based on demand.

For reit, there are different class, Mall, Office, Industrial, Hospitality.
Some are under long term lease, some are not.

So the effect of property slump will affect different reit at different degree.
Those under long term lease will have least impact.

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Added on May 13, 2011, 11:35 amIf reit price is going down, while its earning still maintain, aka same dividend, it makes the reit more attractive as yield become higher.

Buying reit, is all about yield.
Don't buy reit if intended to get capital gain.
Capital gain is a bonus and shouldn't be first consideration when buying reit.

This post has been edited by cherroy: May 13 2011, 11:36 AM

2.9%?
Half year, 2.9% may be.

It is a 5-6% yield.