I remember there is a rule that all m-reit MUST give their 90% or more of their rental profit as dividend to shareholders. Please correct me if I'm wrong. If so, how come Sunway REIT and the other upcoming Capita Malls REIT propose only around 6.7% dividend? Does that means their profit is not so good? But Sunway Piramid? Sungai Wang? Gurney Plaza? How come profit not good? 

As reit holder, people don't straight away cheer when the management propose acquisition.
I see little this kind of comment.
Some may be just mis-understand the acquisition issue, may be due to previous acquisition did improve the DPU.

We always need to look in to details of the acquisition, what is the yield, what is the lease, how to fund the acquisition.
Previously we did discuss before some acquisition yield is not something very good while some are indeed improve the overall earning.

Yes, the more asset being injected, the more management fee they can get. That's incentive for them. I don't deny this is a great incentive and potential excessive risk taking.
As said before there is definitely risk involved in new acquistion.
But it is same with banks as well, the more they lend, the more risk they have.
Everything come with risk.
If scare of risk, and don't want to do anything, also not a right mentality to start with.

For stagnation discussion,
Majority people always want some grow, it is nature for people. Just like you are doing business, you would like to have more sales, so that profit can go up.
Just like you buy a property and rent out, yield 8-9%, sound very good, but nature of people is, I want to have second properties to compound my return.
Little people will say, hey it is too much risk (price overpaid, difficult to collect rent) already, so I better stay with 1 properties and doing nothing.

Remember the first day the reit being launched, if it started with 10 properties, then those 10 properties also can be priced overly one. Not limited to the newer acquistion afterwards.
The newer acquistion risk is same as pricing of reit what start time.

Who know current properties price is high or low, nobody knows (although there is some bubbles currently), but it may be higher further in long term future.
Just like last 1 year ago, (a real life experience), everyone said a particular properties at Rm500k is overpriced, insane, but now there is great demand at 700k.
Main reason is our money value is depreciating, not the properties price appreaciting factor. So if there is such acquisition taking place, then it is good acquisition. 

Sometimes we need to be fair as well, if the management is doing a good job, and reit holder benefit are looking after, then there is little wrong in doing this.
Some properties are yielding 8-9% with long tenure of lease which is considered as good acquisition.

Some reit are more offensive, some are more conservative, it is allowable within the guideline as long as the management is sincerely looking after reit holders benefit.

To say all reit acquisition is bad, is something too harsh already.

Yes, I agree reit is not the same as natural growth company, but turn back the issue, if you work a company, and the company said to you, the company is not a growth company, and resulted your paid cannot be raised or raised too much, don't you feel demotivated? if you look from the property management company.

As reit holder, you vote or reject the acquistion resolution if the price paid is too much, yield not good, or company take too much leverage on it.
You approve the resolution, if the properties acquisition is fair, yield is attractive, and there is little funding issue.

Reit holders are deciding the acquistion can go through or not, not the property managers, so all reit holders decide.
So cast your vote and right, if not opt to and feel uncomfortable with acquisition, as simple as that. 

Cheers.

sharesa,

The current yield of ARREIT is 8.5%, while the yield for the new acquisitions is 7.25% for the first 3 years. This automatically drags down the yield.