I am sis and enjoy your KFC drumstick but beware of high colestral.

Oops, just check my account and found the divvy was credited on 3rd Sep. Me blur liao

This post has been edited by protonw: Sep 16 2010, 02:39 PM

Any probability of the Malaysian Government giving tax reduction of 10% in the October 15th Budget?....what say you all!! Would you think that the Malaysian Government will let the REITS grow to catch up with the REITS market in SINGAPORE & Hong Kong? Is our present BN Government is a good listener...I doubt so!!



Fat hopes is the most probable reply. Yours too????




Cheers to all.

This post has been edited by monkeyking: Sep 18 2010, 09:53 PM

The main reason why witholding tax is still on, because if abolished, then a lot of company will set up reit company and sell all their properties/offices then lease it back. By doing this way, company can get a lot of tax incentive as well as gov lose both front of witholding tax + income tax. As rental income is considered as expenses that is tax deductible.
It opens up a way for company to save tax.

But this definitely + points for reit industry.

About Stareit issue,
Stareit this Q should be reporting dismay EPS due to newer properties not yet injected. So be prepared for poor result of this Q.

That's why Stareit market price generally depress compared most reit price has been surging lately.
But if the newer properties can provide good yield (which is not yet known), then at current price, it could provide some little opportunity.
It is one reit that with more than 20% in market price vs NAV.

I have my eyes on Twreits. My preferred entry price is RM 1.15.

Reason:

High DY among the sector with a high NTA/Price ratio.

Xuzen

Good news for Atrium, DHL has renewed the lease expiring this month for another 4 years.

cherroy,

Thanks for the news. Now that ATRIUM has broken the 1.00 resistance, I hope to see it grow like AXREIT. By the way, could you please check the volume which was transacted at 2.20 for AXREIT? I hope it wasn't a 1 batang push.

Hello to all Sifu's. I am newbie to this forum. I am keen on buying Amfirst reit and I hope you can help me with your advice.

I read Amfirst will pay the first half dividend in November 2010 based on 1H results as at 30Sept 2010.
Question: when is the last date I can buy the reit to be entitled to the dividends?

Assuming I buy at RM1.18 on 30th September 2010, and they pay the expected dividend of 4.88sen per unit and I receive the dividend on 30th November 2010, can I say my annualised yield is 24.81% based on the following calculations?:

0.0488/1.18%=4.135% for 2 months investment (30Septembet to 30 November).
Annualising; (4.135/2)x12=24.81%.

Thanking you in advance.

You could buy a REIT unit anytime before the ex-distribution date to be entitled for the dividend. The ex-distribution date will usually be announced together with the announcement of the interim financial results.
About the return on investment, the annualized yield calculation seems about right. However, do remember, that the calculated annualized yield would not equal to the yearly investment yield as you would not receive the 4.88cents per unit every two months. In the case of AmFirst, the historical yearly net dividend yield for the last year is about 7.4% (based on today's closing price of RM1.18).

Think of picking up some

Thank you WagnerK. Does it mean if I sell AmFirst once I received the dividends and then buy similar reits that will give me another round annualised yield of about 20%+ (over a 2 month period), and I do it repeatedly, I can "actually" earn annual yields of about 20% on reit investments?

Thanks again.

it's not as simple as it appears.
You can buy @ 1.18 for the 4.88 divvy, but when ex-date price become 1.13, so you need holding power depends on market conditions.

Yes, you would "actually" earn a yield of 20% p.a. if you are able to execute that strategy successfully. However, you would need to consider the transaction costs involved in buying and selling the units and the timing of buying a replacement REIT with similar yield.

Yields from REITs are made up of two components; dividend and capital gain/loss. Trading REITs frequently will result in you incurring more transaction costs that will diminish your capital gain.

About the timing, most REITs have a policy of quarterly or semi-annual distributions (they seem to come around the same time). And, prices of units may move up or down after the ex-distribution date. So if you are looking to time your investment into different REITs, i think you have some job at hand...

I am a newbie too. My humble view is to look at REITs as a medium to long-term investment.

Exactly.

where got such good thing in heaven one.

yr calculation is wrong, not every 2 mths u gain 4.135% there.
furthermore price got adjusted after ex.
if it so simple, i "sai Lang" my cash, mortgage my house, sell my panties and whallap all in liao.

The calculation is not done in this way.
The annualised yield is a total meaningless figure to start with.

If like that, any person contra gain with 2% within a day, can claim they are earning 2% x 365 = 730% annualised gain, more powderful this figure than the 20% gain <---- got any meaning this kind of figure??

The actual situation is that you are getting around 4% yield.

And after the ex-dividend price will be adjusted down, and you might make a loss by selling it.

You are right. I missed the ex-price scenario.
Based on current pricing of Amfirst at 1.18 and expected dividend of 4.88(x2), the current quoted yield is 8.27%.

However, if i buy later at ex-price of say 1.13 and assuming dividend remains at 4.88(x2), the calculated yield then goes up to 8.637% .

Can i say that the more accurate representation of yield is 8.637%? It is the "true" earnings based on one full year of investment?

Thanks.

To be more precise, apart from transaction fee, you need to deduct 10% withholding tax. The "true" yearly earning yield purchase after (ex), say rm 5,000 purchased for 8.637% would be rm431.85 - 10% - (optional some nominee account will charge handling fee rm2.5~ rm5 per cheque)= rm388.67.

This post has been edited by zlyc: Sep 22 2010, 12:27 AM

For simplify version.
The actual situation is you put Rm1000 in it, then if everything as projected (no guarantee), then you are getting Rm70+, but on the same time, it doesn't mean the value of RM1000 remain the same, it can be higher or lower.

To solve all argument, just buy keep for one year and find out

Hi all, I just hopped on the STAREIT bandwagon. XD Hopefully dividend returns are better than expected XD