Qcap Research Paper.


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thanks..

stabilizing for capitamalls and sunreit have completed
you may want to sell now unless you wanna hold for low investment returns of around 7%

is it good time to enter

At 7% dividend? No thanks.

then hw much you looking at ?

rather acceptable considering they're pure mall-plays.
so they're the more defensive reits compared to other higher-yield reits.

This post has been edited by teehk_tee: Aug 11 2010, 06:34 PM

Dear forumers,

Amfirst REITS has just announced its 1Q 2010-2011 report. Revenue increased by 6% due to renewal of tenancies at higher rental rates and new lettings but net income after tax were also lower by 6% due to higher provision for doubtful debts and higher interest funding costs.
Dividend per Unit (DPU) for this quarter is 2.32 sen (a drop of 0.15 sen compared to previous quarter), annualized DPU would sum up to around 9.28 sen. Based on current market value of RM 1.19 per share of Amfirst REITS, the yield will be around 7.79% (not including the 10% withholding tax yet). Seems like even though with higher revenue, the net income was still lower and one of the main reason mentioned was due to the hike
in the overnight policy rate (OPR). As a newbie, oops, I didn't take this into consideration when purchasing REITS . So, below are some questions that I hope some senior investors can comments or give their views.

1) Can we summarize that as a whole, other REITs too might be reporting lower income due to the OPR hike? Which REITs
have more exposure to the increase in OPR hike?
2)What is the meaning of 'higher provision for doubtful debts'?

Thanks in advance.

1. might be possible if they are on variable loan

2. rents owed which might not be able collect.

Thanks for replying. So, where can we find out whether they are on variable loan or not? And regarding the rents
which might not be able to collect, does this mean if they are able to collect the loans, then subsequently investors
can get more returns via higher DPU? This 'provision' thing is some sort like 'unrealized losses' yet could turn out to
be 'realized profit'?

1. normally you can find the details in their annual report.

2. recovered receivables will be income for next quarter which can be distributed to share holder.

So that you can pick them up at a steal?

1. Depended on their loan nature. Some are on fixed rate for 3-4 years, some may not, some may on step up rate etc.
2. Explained by ante5k

For me at least 10%, so I am prepared to wait long long time before buying. Or maybe never if it does not come to the level i want.

This post has been edited by gark: Aug 12 2010, 12:03 PM

10% i think very hard...in order to get 10% market must be very bullish and irrational. For me 7-8% is good enuf..

Correction, to get 10%, the market must be falling or crashing... The more bullish the market, the less dividend % you will get as the price moves higher.

This post has been edited by gark: Aug 12 2010, 12:55 PM

guys, do you think its a good idea to buy some Sunreit and keep as a long term investment? Thinking of withdrawing some FD's to be invested in this counter to yield better return than then bank interest.

just make sure to cash in when the "lease" expired..

cause the sunway side if im not mistaken its all lease hold properties refering to sunway pyramid

I reckon the leasehold tenure still quite long, which should beyond our dead date already.

You need market crashing time in order to get this kind of yield.

Just like Axreit was sold at Rm1.00, with >12% yield last time out.

But when this happening, it could mean rental could be under pressure, lease expiring may not able to renew, loan refinancing could be difficult and costly.

So it is always a trade off.
Want higher yield, only with more risk time.