What about the leverage used? I think leverage increased to 40+% meaning they part finance through loans. This might make the new acquisition yield higher than 7.25%?

wah, sharp eyes huhh 

oh......?  But I thought this 7.25% = approximately 19 million will then be divided by the number of units to get the yield? Not judging by only the yield percentage from the letting-out of building premises, isn't it?
270m X 7.25% = 19.5m rental

Ya, i realize that. And after reading the Axreit's paper, I also found out that the same case applies to Axreit too. FY10 yield suppose to reach 8%, but because of the expansion(special offer for new tenants 1st year etc) , the yield becomes 7.3%. And the yield will only goes back to 8% for the FY11. But then, I even start to worry what if they have more expansion plans for FY11? Then our yield will remains at 7.x% level. 

The total of unit is increased now, through new 122 million unit

from the report it seems that AmanahRaya and Starhill has very similar price and similar return... which one is a better buy now?

yeah...units increased though, but total yield from previous & new buildings divide by total number units including newly issued, according to the researcher , will improve slightly from 0.9% to 1.3%

I don't dare to say which is better.

But I prefer Stareit, although I own both,  I am more on Stareit compared to Arreit.
Mainly Stareit has little borrowing to achieve currently yield.

oh......?  But I thought this 7.25% = approximately 19 million will then be divided by the number of units to get the yield? Not judging by only the yield percentage from the letting-out of building premises, isn't it?
270m X 7.25% = 19.5m rental

Hi Jordy,

What about the leverage used? I think leverage increased to 40+% meaning they part finance through loans. This might make the new acquisition yield higher than 7.25%?

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Added on September 4, 2010, 12:24 amWhat I don't like is they issue new units to PKNS at MARKET price of rm0.88, not rm0.95. rm0.95 was the price they bought a smaller additional investment from ARB. should have issue at 0.95 also at least. Signs of incompetent management or something fishy?

sharesa,

The yield is derived based on the purchase price of the properties, so in REITs term, we are getting what we paid for.
constant,

As mentioned above, the yield is based on the purchase price. Which means that the source of funding is not important. The important issue here is the price these properties were bought and the rental they produce.

It is not for the company to decide the price for the new shares. They will have to float it based on the 5-days market average, according to the guidelines for REITs.

i always thought that 270m(purchase price of building)  x 7.25% = 19.5m(rental)
then, 19.5m divide by total units of Arreit = yield per unit

From the pdf so kindly provided by brother sharesa,  it seems that gross div yield (%) increases with each year until 2012........from 2010 yield at 8.6 to 9.7 in 2012.....for year 2011 it's 9.4...that means are we all getting better dividend with each year?......correct me please [thanks to all].......btw, I am not too good reading these reports.
Cheers to all.  

errr...i believe sharesa is a SHE. 

For yield increasing yearly....well, in good condition, yes. However, that just mean if you buy it for current price. If the yield increase, normally the share price will also increase, that makes the future investors' (or if you accumulate more in the future) yield looks thinner. 

     Saturday, July 3, 2010
SUNWAY REIT IPO:THE BIGGEST RIPPED OFF IN BURSA MALAYSIA

Why you should sell Sunway REIT when it starts to rally on July 8 (listing day)?



•Jeffrey Cheah is selling his stake in Sunway REIT to "shift his focus" away from Malaysia, which FDI is dwindling at worrying rate. He knows that the Malaysian economy is going down the drain sooner or later.If it's so good,why sell it to the public?More shopping centres will flood the market in the next 2 years but the prospectus never mentioned it.


•Dividend rate is so low at 6.7% compared to other Malaysian REITs.Average dividend by other REITs is at 8.5%. Hence,the share price will normalise (drop) to follow the other Malaysian REITs. Remember to sell it on July 8.


•Sunway REIT have very large space in Sunway/USJ. Where is Sunway located? It is a suburban satelite city far away from KL city centre. So,yield at 6.7% is not justified at all.Give me a yield of 10% and I may consider it.


•What is the future expansion plan of Sunway REIT?What Sunway REIT is gonna buy to increase its NAV ? If the NAV is appreciating at inflation rate while the buildings are depreciating at even faster rate,the dividend yield may be affected due to high repair and maintainence cost.



Why bother to buy Sunway REIT?I rather buy KLCC Property Holdings which is more secured and expanding.

SUNWAY Real Estate Investment Trust is the biggest ripped off IPO in Southeast Asia this year.

  What say you?

Cheers.

Just receive this email from a friend.....so thought that some of you may like to take a good look at it. ......maybe a little late but still worth reading.
 
  What say you?

Cheers.

From the pdf so kindly provided by brother sharesa,  it seems that gross div yield (%) increases with each year until 2012........from 2010 yield at 8.6 to 9.7 in 2012.....for year 2011 it's 9.4...that means are we all getting better dividend with each year?......correct me please [thanks to all].......btw, I am not too good reading these reports.
Cheers to all.  

That means by the look at Arreit future dividend , it seems that at the present price of 88.5 cents it is a worthy buy. That means start collecting now to hope for a better increase in share price just like Axreit. ....that means more money in the bank.