STAREIT is the slowest non-moving REIT in my portfolio. Bought @ 0.86 in Dec 2009. Today also still 0.86. Meanwhile, other REITs had move some. Not saying that its bad, dividend is ok. The almost non-existent news about new property injection etc is not doing it any good. However, since I am already in, I will keep it and hope for some good news soon

I too bought quite a large number of STAREIT shares at around your price too [just recent pick plenty more at around 85 cents] for it's quite decent dividend. Maybe, YTL will inject the properties after the October 15th budget while hoping for the 10% tax reduction. I am sure Francis Yeoh knows his STAREIT is not moving as I have read it somewhere that he did say something about STAREIT share prices are not moving even though it's NTA is high......presently it's NTA is this...

The YTL stable of companies owns about 60 to 70% of STAREIT[ I don't know that actual figure though]........so dare I say YTL Francis Yeoh will take some concrete action. Maybe he will give higher rental for the incoming hotels that is going to be injected into STAREIT so as to give higher yield & thus move up the share price......well, just maybe only. Surely he has alot to gain by giving more rental to the hotels in STAREIT because what he gets from STAREIT will go back to the YTL group of companies......just remember this...

1. YTL group pays 25% tax if it operates the hotel itself....so move it over to STAREIT.

2. STAREIT pays only 10% tax..so it's a savings for YTL group of 15% tax....that is alot of money if you count it in millions.

3. YTL groups rental of hotels from STAREIT is expenses deducted.

4. So Francis Yeoh has alot to gain........by paying more rental to STAREIT & gain more both in expenses tax dedution in YTL group & 15% tax deduction in STAREIT. .......both sides he gain.



So isn't he smart? Let's wait for a little while more for more good news from Francis Yeoh or STAREIT......maybe he will inject each hotel one by one as for each injection there will be a slight increase in share prices as there is more income from rental........so think about it if he inject 10 to 15 hotels one by one.

Just my 2 cents worth.

Over to you brother cherroy......I am confident you are definately more well informed about REITS than us......tells us more please.......thank you brother cherroy.


Cheers to all.

This post has been edited by monkeyking: Sep 29 2010, 02:01 AM

This is not new, has been highlighet the advantage of reit, and why witholding tax of 10% has little chance to abolish all together. Because there will be a lot of tax incentive for big company to set aside a reit and rent all their offices/factories through reit set up.

If abolish, reit industry definitely will be mushrooming and a positive development for reit.

I believe, there will be fist batch of properties consist of several hotels being injected in one shot, rather one by one. Just my pure guess.

This post has been edited by cherroy: Sep 29 2010, 05:00 AM

I am anticipating some drop in share price due to potential poor 3rd result which DPU might be significant lower than normal, due to loss of income by Starhill and Lot 10, which could present opportunity to buy a lower price before the newly properties injection.
But it could be done at the same time as well.

Maybe share price of STAREIT as new hotels are injected into it.....the reason being STAREIT being a fully hotel reit will definately apply for PIONEER STATUS whereby the Government will normally grant between 3-5 years tax-exemption......yes, HOTEL REIT is brand new in Malaysia, a pioneer so to say. If you were to look at ALAQAR it's a pioneer too as it's a HOSPITAL REIT & it's dividend are T.E [tax exempt] & so the same could be apply for STAREIT.


Correct me if I am wrong.....wonder if there's such a thing as PIONEER STATUS FOR REITS.



Over to you brother cheeroy.......what say you....tell us more please on the above.....your personal views please...thank you brother cheeroy.



Cheers to all.

This post has been edited by monkeyking: Sep 29 2010, 06:34 AM

I noted that some reits with higher PE ratios also have higher dividend yields than those with lower PEs. Example (data from The Malaysian Reserve of 24 Sept 2010.)
Reit "X": PE-9.5; Gross Dividend yield-8.10
Reit "Y": PE-6.8; Gross Dividend yield-8.0
Based on general views that lower PEs are generally "preferred" by investors, does this view also applies to investment in reits?
Advice much appreciated.

PE is actually is identical with dividend yield in reit situation.

PE = Profit/share price (operational profit)
Dividend yield = 90-100% of profit/share price

So just look at dividend yield is good enough because reit is under at least 90% profit distribution.
While PE, must bare in mind, property valuation surplus is including in the profit figure, so it could give you the wrong impression.

So in your case comparison, it could be the case. There is no such thing of higher PE gives higher dividend yield.

Thanks Cherroy for your explanation. My understanding of reits is now much better. Can now jump onto the reits bandwagon. One more question? Where can I get current, reliable and realistic projections of dividend yield on the different reits in the market?
Thanks again.

Hahaha, well, dividends is good, that's all I care. Not asking too much anyway. Seems relatively well managed for the price I'm paying XD

Hello, anyone with experiences with Singapore Reits? Besides additonal forex risks, are there any unique issues/risks in buying S Reits? Do dividends received from S'pore attract Malaysian tax?

Any comments on Ascott Residence Trust reit, Lippo-Mapletree Indonesia reit and Starhill Global Reit?

Thank you.

1. Dividend and capital gains are not taxable in Singapore.
2. Income received from out of Malaysia, if you are a Malaysian Resident are not taxable (income tax) as well, but you need to declare it.
3. For more info and analysis on SGX REITs please visit this Website.

So effectively, no tax.

This post has been edited by gark: Oct 2 2010, 12:27 PM

thank you for the info.. no tax.. very nice.

Sooner or later, everybody will start moving over to Sgp.

Why?
SG reits yield is lower.

Gark, Thanks for the info
S Reit here I come

A word of caution wrt to S-Reits... you are subjected to Forex risk. Something extra to think about it.

Unless, you decide to use the divvies to spend in SG, then you should not worry at all about Forex.

Xuzen.

Not necessarily, the effective yield could turn out to be the same, because there is no tax against the dividend in Sgp. Secondly, there are REITs with yields approaching 8.5% too in Sgp, tax-free.

And at the end of the day, the Unsystemic Risk in Sgp is lower compared to ours.

Forex problem - in the long run, the chances for appreciation for and strengthening of the SGD is definitely better. But to mitigate this risk, try to convert your RM into SGD at the times when the RM is strong compared to the SGD, a good eg would be when the 1SGD is equal to RM2.33.

I see. Thanks for the info.

hi all,
im a beginner in REITs, wanting to make my first purchase
my question is: how do I pick which REIT is right for me?

to know whats right.. we need to know what you want to achieve ....

all reit is right for purchase since its REIT