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

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.

I don't know about the issue of stamp duty.
You are using nominee account?

Yes, it is always optional, you need to inform them (axreit registrar) you want to reinvest.

Personally, I will not opt for reinvestment, odd lot popping up, which I hate the most,
and I want cash which give me more flexibility, whether to reinvest, or invest elsewhere. I would rather use the cash to reinvest myself in the open market, instead reinvestment that popping up odd lot here and there.

Cash is very important in a market uncertainty time, especially with lot of turbulence in the stock market for the late few years.

Above just my preference, not necessary right or wrong.

Atrium first time proposed an acquisition.

I taught this is old news already or no?

The previous private placement has already fund the acquisition.

One of reason also because of interest rate.

Sg interest rate only below 1%. So a yield 3-5% seems attractive enough. People are willing to buy at 3-5%.

But MY, FD rate already 3.x %, if reit yield also 3.x%, it makes reit very attractive, might as well park in FD, more secure, easier.

Oppss, not correct, should be unattractive.... my bad.

Last time (months ago) bought Qcap and Stareit already.

Now targeting dividend cheque coming only.

Normally disposal take a week or a couple of weeks.
You will see volume spike up, and lot of buyer and seller each day, then volume shrink back again.

There is no point to let go in one go, as it can depress the price too significant, eventually affect their selling price only.

This the the problem when we have not enough liquidity.
But generally speaking, for retailers, a few hundred to a few thousand lot, it has no problem to let go in a day.

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.

witholding tax - 10%
Not 25%.

Yes, those published is gross yield, the net yield need to discount 10%.

Buy when the yield is attractive enough (personally)

I partly disagree on this.
CMMT and Sunreit has more premium over their price because of its liquidity and stable outlook for mall retailers lease business.
Size and liquidity is important for some instituitional funds.
They will not consider or least consider if there is not enough liquidity of the reit as when they need a few ten million time, they can dispose easily.

Most lease is at least 1 year or above, cannot expect too much upside in the income side for near term.
New properties and acquisition may not boost yield in current situation, because properties valuation is high or escalating lately few year, nobody is going to dispose properties cheaply in order buyer to enjoy good yield.
While rental market generally cannot keep up the pace of properties valuation escalating.