But that's just 3 months away.

No doubt REITs give good dividends but the trade-off is there is no possibiitly of the buyer suddenly getting 'rich' through sharp capital appreciation.

And can its dividend increase year after year, like some blue chips such as BAT?

I thought REIT dividend is already taxed before it reaches the shareholder and no need to declare anything?

Anyway one I thing I'm uncomfortable about Arreit is that Selangor state agency PKNS is its second largest shareholder and PKNS has been injecting some of its assets into the reit.

This post has been edited by Veda: Nov 28 2010, 06:19 PM

I dabble in both stocks and property. The problem I have with REITs are:

1. REITs are highly geared and all the currently still high yields are linked to the currently still low interest rate of their loans.

When the interest rate goes up, won't the yields of the REITs go down?

Of course, if some of the REITs are on fixed rate loans, they should be spared the negative effects temporarily .... until they need to refinance again.


2. there's an oversupply of office spaces in the Klang Valley and the situation is expected to get worse. This may have an effect on the office-based REITs. And new malls are coming up like mushrooms after a heavy rain, which might affect retail REITs.

3. the DY of REITs are pretty stable except in relation to 1. and cap appreciation is limited (except Axreit?) But there are a fewgreat stocks that offer increasing dividend and capital appreciation year after year.

Correct me if I'm wrong

This post has been edited by Veda: Dec 23 2010, 02:17 PM

cherroy, thanks for the explanation.

I'm trying to decide whether to use my bonus to buy REITs, stocks that may benefit from ETP/GE13/QE2, or save it for any interesting IPO that may come along .... especially Petronas Carigali

This post has been edited by Veda: Dec 24 2010, 02:05 AM

Geographical and economic risks.
1. Japan - quakes, tsunami, radiation, long term economic decline
2. Australia - floods, possible property bubble
3. Hong Kong - possible property bubble

I wonder if investors will get cold feet after the recent disasters in Japan and floods in Australia?

The distribution per unit should be 6-7%.

Agree with 2010May. What do you think will happen to occupancy and dividend if one or more of its properties are damaged or destroyed in a disaster?

My question was tongue-in-cheek lah. You need to read a few posts back for context.

This post has been edited by Veda: Apr 24 2011, 10:12 PM

A lot of ppl like to quote various "pearls of wisdom' like the highlighted.

But my post was specifically in response to a post asking what kind of risks Axis Global Industrial Reit is exposed to.

HK and Aussie dollar will only rise against RM in the medium to long term, IMHO. Not so sure about yen though ......

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Added on April 24, 2011, 10:31 pmI think if one is conservative/risk averse, stick to Reits with properties only in Malaysia.

If one has a bit of appetite for risk, then only buy Axis Global ......

This post has been edited by Veda: Apr 24 2011, 10:31 PM

Yes, economic crisis appears to come in 10 or 11 year cycles.

However, stock markets do not only crash according to this cycle.

I was just a kid then, but I believe the Malaysian stock prices also went down badly in 1993 or 94 and around 2000?

I do not want a crisis just yet ..... at least not this year or next ........... but if it does come, I am not the least afraid of losing my job.

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Added on May 17, 2011, 5:49 pmNobody knows. No use trying to time the market. Just be prepared at all times.

This post has been edited by Veda: May 17 2011, 05:49 PM

I don't think it's a matter of wish or don't wish. If we live for 45 more years, we will no doubt experience at least a dozen more stock market crashes and 3-5 economic crises. Anyway, I've experienced bad, traumatic times in my life and a mere economic crisis will not shake me