I don't study much about this counter.

It just own the properties previously under KPJ, then restructure into reit, which in turn those hospital belonged to them, and KPJ rent from them.

To say it is a healthcare reit, somehow not quite right, it just rent their properties which is hospital to KPJ. They have nothing to do with healthcare or directly involve in healthcare.

This is as far as I understand, I could be wrong.

No, you must buy before the publised ex-date, not payment date.

Simple answer is yes.

But don't expect reit performance is same with ordinary shares.

My guess (I could be wrong), is that,

1. All building/properties are customised which originated from KPJ.

2. KPJ is the sole tenant of those properties while KPJ is also the major stake shareholder as well as party that inject/dispose the properties to the reit.

So all are close tied to KPJ.
While customised building will have more difficulty to rent out, if one day, the sole tenant doesn't want to rent anymore.

I understand you pov, just a reit holder, we want the portfolio properties

1. independant with the major stake holder aka no/less RPT issue, and little conflict of interest. In this issue, there is conflict of interest as increase rental rate would hurt KPJ earning or increase its cost. The issue is same with Stareit (at least about half only as compared to 100%), Amfirst as well.
That's why Axreit is always preferred by investors or strong point of Axreit.

2. Reit is not properties development company. As reit holders, we merely want its as passive income, aka own the properties and constant collect rental only. This is a fixed income instrument. We don't want to see our reit venture in properties development, change/redevelop the properties. We just want the properties is maintain in good shape which has a lot of demand in rental market, as well as could be potential improved in valuation.

3. Whether those properties is originated from shoplots or build from scatch is the not main issue here. We as reit holder, pay the valuation based on value and yield potential.
Even those are from old shoplot conversion, but when injected into reit time, it is based on market valuation of those properties, it doesn't come cheap, it is based on fair actual valuatoin when the properties being injected time. You paid the land valuation + building together. If the building is customised and has little demand on it, the value part is land only, building valuation paid won't be recovered.

4. Just like Jordy said, there is no competition in lease demand for those properties due to customised and nature of it (whole building or 10 shoplot together one). Unlike office space, when the properties fully occupied, and still there is demand for it, then rental rate stand a chance of increasing.

As a conclusion, we want reit as indepedant as possible, not rely on everyone, major stake holders, to generate income, which is based on its own competitiveness in the market and suriving on its own. It is same with ordinary share or listed company.
This is important because if a company is surviving on its own based on its competitiveness, then there is more security of its long term future.

Don't get me wrong, I no doubt Al'qar provide quite decent yield as well and security in term of rental/lease (as it is very unlikely KPJ won't rent those properties), just something we can highlight about the issue, and why people give lower rating.

No.

Instead it is good for investors, more choice, more competition, more diversificaiton potential.

It is good for reit sector. More competition, reit manager need to work hard to attract investors.

It is a minimal issue. At least must pay some management fee, if not, reit manager eat sand meh.
Can't expect buy reit and goyang kaki without doing any job, while don't want to pay management fee which the reit can generate 7-8% yield for you.

As long as the manager take good care and manage well, it is consider none issue.

In UT, they charge initial service charge of 5-6%, annual management fee 1.5% at least, yet some give negative return even after 3-5 years, while some return rate lower than FD rate.
But little people complain about the charges, so if compared with reit, reit is still way cheaper while constantly give you 7-8% yield annually, as compared to UT which may give zero dividend.

Bare in mind, those 7-8% yield has already taken account of the management fee charges. Without management fee charges the yield is 8-9%.

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Added on June 24, 2010, 3:05 pmThose fair value is subjective matter.

Axreit is given higher TP mainly due to
EPS is showing gradually improvement, resulted from higher rental revision, constantly new properties injection to boost its earning, and diversified.

Remember reit price/TP set mainly is base on yield attractiveness.
So does for ordinary share out there.

It is how much return can get from you invested money.

This post has been edited by cherroy: Jun 24 2010, 03:05 PM

Not quite right in this issue.

The income of the reit is fixed aka if sunway rental income is Rm100 million then no matter what the price of IPO, it won't affect the income or situation of the reit itself.

When IPO time, it is sunway sold their stake out of the reit, aka if the IPO price is lower, it just means the parent company is getting less from the IPO.
It won't affect the reit itself, nor the reit needs to raise loan.

I don't read the prospectus nor knowing the details inside, frankly speaking.
So I need some confirmation before can comment on this issue.

As I not applying the IPO either.

Fully value is not equal to "over price"

Fully value, is just means current pricing is fair, not cheap not expensive, and according to general market perception what level it should be.

Yes.

There is another IPO going on now, CapitalMall.

Open market share price may about the same with IPO when listing time.

I don't expect too much different in price with IPO price after listing.

No

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)

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.

Ya, already expected, posted week ago.

A lot of investors still cannot change the mindset that getting IPO is not guaranteed to make money or when list time, the market price must be higher than IPO.
Even for ordinary shares, a handful of are listed below its IPO price.

Especially if the yield is not attractive than existing reit out there.

Around 8% will be attractive enought.

But I don't like one of its portfolio, Sunway Carnival.
(My personal opinion only)

Location is not strategic.
Crowd is low
Not fully occupied.

Nearby got 3 shopping mall around, while too many hypermarket surround also, one of the mall is in dying shape.

Population at there area is not high.

Don't get me wrong, it is a nice mall, but crowd is not there due to population and spending power is low at there area.

So I don't expect this mall can do very well, main reason, wrong location to start with vs Capitaland's Gurney Plaze in island, which always crowded, and higher spending power there.



This post has been edited by cherroy: Jul 8 2010, 02:37 PM

This is bulls#t,
14 days?
Whether successful or not, already known prior before the listing.

You should be successful in getting in, as the IPO is not overly subscribed. 1.0x subscription rate aka only a small portion (0.0x%) won't get it.
or there is some technical issue that resulted your application being rejected

Even it is technical issue that resulted being rejected, the status whether getting the IPO should be clear either get or not.
Not the like in the limbo, don't know.
I would say it is handled unprofessionally.

Try to call your broker or broker that you apply the IPO, they are the one responsible and only can help you.
I don't know whether you are using nominee account or not. But if it is under nominee, MIDF might be helpless in your issue as well (I am not sure in this issue), as your name won't appear under the shareholders list.

They have until Sept to finalise the rationalisation proposal. (if not mistaken the time frame).

The properties disposal will only finalised after 3Q, so for the financial result until 1 half 2010, DPU should be around 3.x cents as well, identical to previous H.

THe injection of properties is not completed, Japan resort is the first one, and should be follow several new properties. Those properties should be replacing the income of Lot10 and Starhill. The acquired properties should be contributing to the reit income as soon as after the injection, as those properties are operating currently one.

But in between the gap of disposal and new properties injection, expect some period without much income for the reit.

From my personal view, the manager is slow to inform reit holders about the situation, especially the new target properties injection (which is primary info reit holders need to know), but market roughly guess several already.

This post has been edited by cherroy: Jul 11 2010, 10:44 AM

It depends on personal preference.

I am still holding it, as I believe yield should be around 7% as well with the new injection, so no point to dispose then the money being kept in FD that yield less than 3%. Also current reit market price is not high, if around 1.00 or near to NAV then may be considering.
Just my personal view, don't mean to recomment other to hold/buy/sell.