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.

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'?