If you check back the previous thread ( v one ) , one of their buildings was ( is ) vacant for quite some time.

Also , Islamic reits may restrict themselves to Islamic borrowings only , loans could be in short supply when the economy is not doing so well.

This post has been edited by SKY 1809: Mar 29 2010, 01:56 PM

The NAV part posted is when Stareit disposes its properties at NAV then NAV will not change due to the disposal of properties.

Don't know what is your meaning especially on the bolded part.

There is no requirement or mandate to pay unit holder 8% or whatever %.
Any distribution is given based on 90% of its profit or income.
Lower income low distribution.
No income, no distribution.

Unit holder is not lendign money to reit company, unit holder is the one 'own' the company.

This post has been edited by cherroy: Mar 29 2010, 02:50 PM

Starhill REIT NAV doesn't change much when the propose disposal because they already revalued it. In fact, in the proposed disposal, there is a loss of 50 million. REITs are allowed to dispose their properties for no less than 90% of the last six month valuation.

There is a policy for Stareit to distribute 90% of it realised income, that is 8% yield for unit holders. If they wish to expand, one way is to issue more unit and meet the expected yield of 8% too, or dilute earning that may lead to liquidation that happen to AHP2. So, instead of yielding so much money, I think they should have borrow it somewhere else with only 4% interest.

What I'm uncomfortable about Stareit is I'm not sure (once it turns into a hospitality REIT owning only hotels and resorts) how it gets income to pay us dividends.

For industrial, retail and office REITs, it's pretty straightforward. They have tenants, and tenants pay rental.

How about hospitality REITs? I presume they have to rely on individual visitors and tourists, and there are bound to be dry seasons - which in turn, could affect dividend payments.

Correct me if I'm wrong.

Moolah,

REIT is a "trust" (or custodian) for the properties. It does not operate the properties under its trust. It is a management company which leases out all properties under it, be it hospitals or hotels. Therefore, the trust will only be earning rental for all its properties.

Although STAREIT owns hotels, but it doesn't operate the hotels. In fact, it leases its hotels to its parent company (in this case is YTL) which in turn operates the hotels. So the cyclinal nature of the business only affects YTL's account. STAREIT will still be earning the rental even if the hotels are facing a downturn.

That's right. It's a chance to go for it. Imagine if there is 1 billion and after reposition, the 1 billion investment give 10% of earning, there will be much increase in earning. On top of that, Stareit still owns JW Marriot and The Residences . So my thought is I pay for the 1 billion and I get the free JW Marriot and The Residences to keep.

90% is not a policy for Stareit, 90% because if reit is not distributing 90% of its income, it won't be able to enjoy the tax-exempted status.

There is no policy of 8% yield or whatever yield number being guaranteed or promised by any reit company. As income is depended on tenants and lease income.

Stareit is earning about or near 7 cents per unit for the previous year so, at its old NAV of around RM1.00 (before revaluation), it is not a 8% yield either based on NAV.

Don't confuse with the yield of current Stareit's market price around 8.x%.

90% distribution income never equal to 8%.

Also, the realised gain of capital revaluation on disposal, is not the same as operating or rental income. Capital gain is tax-exempted in the first place, there is no mandate or requirement, 90% of the realised capital gain must be distributed to get the tax-exempted benefit like rental income does.

I received a Malaysian Tax Voucher from TOWERreit recently which states that "The beneficiary is required to declare such Income in their own tax assessment submission to the Inland Revenue Authorities". Does this mean that Income Distribution from REITs are to be declared and is taxable at my personal income tax bracket ?

Supposedly 10% withholding tax, not our own personal tax rate

Waw, LRT new extensions changed.

Many original plans now become " selective "

http://thestar.com.my/news/story.asp?file=...0528&sec=nation

Hmm would that affect the Subang Parade station plans

ATRIUM has found its new CEO after some 6 months of wait. Chan Kum Chong was promoted from his previous post as COO. It sounds like a good match, so lets see how it goes.

Based on the Atrium financial report, 2 of its property lease is going to expire this year end, wonder negotioation to renew it is under progress or not.

Just read this week's The Edge. Apparently CapitaRetail Malaysia Trust is going for listing in the later part of this year.

As for Hektar, they are planing to extend Subang Parade. And there's plans for serviced apartments.

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Added on April 5, 2010, 11:50 pmThanks for the explanation

Anyway, I've decided Stareit is not my cup of tea. Am eyeing QCapita.

This post has been edited by Moolah: Apr 5 2010, 11:50 PM

the first reit to declare dividend for Q1 2010 arreit 1.8597 cents but since when arreit decided to pay quarterly? no complain at all just curious..

I think they just want to copycat Axis

Me really suprise with Arreit declaring quarterly basic, as I didn't came across any announcement they are going to do quarterly distribution before.

Anyway welcome it.

Just start this yrs to change to quarterly. Luckly just brought it last 2week.

I love quarterly divy. Actually, one of my main criteria for selecting REITs. Guess more REIT will follow suit.

YTL plans to house hotels under REIT
http://www.btimes.com.my/Current_News/BTIM...icle/index_html