Just a wild idea. Would a Mcdonald or any fast food joint type or REIT be successful considering Mcdonald main aim is land banking in expensive area

I think you are confused what a REIT is. Mc Donalds is a business, their primary income is from selling you burgers, not gaining rent or capital appreciation from the property.

Oh well, Further research has shown that McD did consider REIT as an option but ruled it out. A pity though

This post has been edited by idunnolol: Jul 4 2010, 01:38 AM

I remember there is a rule that all m-reit MUST give their 90% or more of their rental profit as dividend to shareholders. Please correct me if I'm wrong. If so, how come Sunway REIT and the other upcoming Capita Malls REIT propose only around 6.7% dividend? Does that means their profit is not so good? But Sunway Piramid? Sungai Wang? Gurney Plaza? How come profit not good?

That simply means paying out 90% or 100% will yield about 6.7% based on IPO price. Got to read the prospectus to give a clear answer.

90% is true. The yielding is low due to the IPO price is bit higher, I wish the market would make adjustment itself.

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Added on July 4, 2010, 10:05 amI guess there is a way that Mcdonald's listing in REITs, provided all properties run as Mcd belong to Golden Arches. Then they may list it like KPJ. Can anyone confirm the vendors of those properties ? I know KFC is renting shops for business, but Mcd I haven't heard.

This post has been edited by rayloo: Jul 4 2010, 10:05 AM

Be advised that sunway IPO price have came down to 0.88 per share . If and only If profit didnt change. Expect to receive 7.6% dividend based on entry price

Regarding that question. McD in america actually buy and then rent out those units to franchisee. They are actually not in the business of making burger as mentioned by former CFO. They only sell burger because it enable the franchisee to pay the rent to MCD

This is true, I read an article about Mcd business module. Don't know whether local practise the same way.

I'm just not very comfortable on dividends payment. Look at some stocks, after price dropped for dividends payment, its price never come back. It's so different from the original meaning itself (a profit sharing gift from the company to shareholders). The same thing happens to bonus issue. To avoid the risk, some investors sell before ex-date.

Price never comes back has a lot to do with company earning ability afterwards, not because the dividend ex that make the share price goes down or cannot go back up.

If a stock is constantly paying the same dividend or higher than previously 99% of the chance the share price will reflect to what its dividend ability (provided those dividend is sustainable in the first place through operation business profitability)

For eg.

If a stock can give 10 cents currently with Rm1.50 and constantly throughout years and decade, after 15 years, its share price goes to zero?
It is already a bargain after 5 years at Rm1.00 with 10 cents dividend.
(if as said the share price never move or goes back up and goes down with ex-dividend)

Your example is very funny. I like that!

However, the market is not as reasonable sometimes. Some stocks getting good profits but less market attention, it's like they need more advertisement.

If you intend to hold it long term and just getting the dividend, as long as the dividend is good enough, who care about market attention on it.
You are not going to sell if a stock giving good dividend throughout decade.

In fact, less attention, means you could potential buy it more cheaply.

The most important is the company's long term prospect is intact and good while company is generous on dividend policy based on its profitability.

If look for short term or trading purpose different story.
Dividend play is always about long term play.

still got shark accumulating aqar reit probably bc recent dividend is good

QCAPITA @ 1.00 !

Ya man! Don't tell me something wrong with the company! I just bought it at 1.01 and was very happy, then I saw 1.00!!

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Added on July 5, 2010, 6:39 pmYeah, you are right. I've been too nervous on the market movement.

I just a bit worry if what happened last year could happen again this year.

Do you think?



This post has been edited by yok70: Jul 5 2010, 06:39 PM

Something very wrong or fishy with this price.


QCapita buildings are all rented out ......yes 100% fully occupied.


Now one will wonder how this price is justified......see enclosed picture please.


Attached thumbnail(s)

And just take a good look at the tenants...yes, all QCapita buildings are 100% rented out.


Attached thumbnail(s)

I hope it's just a panic sell! Since the buying queue is also very large.

SUNREIT besok listing.

Initial Public Offering
Date of listing : 8/07/2010
Enlarged issued and paid up share capital in the following
Units : 2,680,112,300
Currency : MYR 2,407,760,808
Stock code : 5176
Stock name : SUNREIT
ISIN Code : MYL5176TO001
Board : Main Market
Sector : Real Estate Investment Trust

RM0.90 eh, not RM0.88. Where's d source? Listed today. I got few guni of it.