Let say I have RM100,000 ~ I invest all in Starreit... dividend 7%
then every year can get RM7,000 x 2 = RM14,000 per year ??

For REITs investor, a five-year exemption from withholding tax will be implemented soon under the Government's new initiative to encourage growth of the sector. However, the date for the implementation is yet to be announced. Well, think will be implemented by end of next year? , since the current 10% policy will expire by end of 2011.

May refer to the website below for more details.
http://www.pemandu.gov.my/index.php?option...emid=83&lang=en

Plus, more REITs will be announced soon, hope more thorough research and incentives would be given to revitalize this sector ^^

it should 

95% of my smf is used to buy Reits...

my financing is about 4.7% pa.

im not targeting the div...im targeting the nav increase year by year n see what it will become in 20 years or when superbull comes.

There is no such thing of asset with lower NAV.

NAV = Net asset value + cash

If you want to inject/acquire new properties, what do you do?
Buy
Buy need cash.

If you use the Rm1 mil to buy RM1 mil worth of asset, the NAV still remain the same at Rm1 mil
NAV will be lower with below condition

1. NAV only will be diluted if you use Rm1 mil to buy a Rm900K properties.

2. Issue new share at a price below existing NAV

3. Company make a loss

4. Properties revaluation resulted in a loss.

if units price r below  NAV, theyll surely buy with cash/loan if they still have the room to increase their borrowings. That will keep the NAV still the same 

they are any REITS.

they dun have to issue new shares to buy new properties, they can make term loans etc.

lets assume Qcapita market price rm1.03 and NAV is rm1.21. they want to buy a new property at rm50m.

so ... they can buy the property using loan of rm50m.

in the balance sheet, assets will be plus ~ rm50m and liability will also be plus ~ 50m too. This will results in NAV still maintain at same price @ rm1.21.

Just for sharing : Arreit having 100% fixed rate term loan. That means any increases in OPR will not affect its margin.

My frend there are no such thing as "sure going up" in investment. I never buy any stocks becos of "sure going up" . This is a very dangerous mentality in investment. To be frank i don really like my counter to surge up suddenly ... tat means i will be having headache looking for new target.

Don worry i beliv is due to Dato' Mani Usilapan one of the commitee member from properties investment has resigned recently. Maybe he sell off some of his arreit shares?

I beliv there might be some conflict in some of the future properties investment...

worry?
sell to me la i buy from you at 75 sen okay

trade off with long term stability, 15 yrs agreement which u don't scare tenant run away. for me it's the most stable reit - low risk - low return - long term holding hope for share appreciation. i believe it will rise to RM 1 in 3 to 5 yrs time ( if u don't mind holding)

There is no universal standard for worth. 
It depends on individual.

Compared to FD 3.0%, someone can say 7% is worth, doubling.
Compared to some ordinary stocks out there that can gain 10-15%, then someone can say it is not worth.
If market bull run, others stock achieved 20-30%, then someone can say it is not worth.
If market crash, other stocks plunging resulted losses across, while Stareit is holding up due to 7% yield, then people may say, magnificent. 

For sure, it is a projection, no one dare to guarantee anything.
Yes, if could be lower due to various reason.
Yield is about price you paid/bought, so if the DPU is lower than 6.89 cents, while there is other alternatives offer 8% yield, then price of the reit may go lower for adjustment comparatively.

That's why Stareit is not traded at Rm1.00 or near its NAV. Market is self-adjustment on itself.

But to be fair, Stareit achieved this yield without/little borrowing or gearing. While most reit is under some gearing range from 25-40%.
If they want to achieve 8% yield, geared up a bit, then it is achievable. My view only.

Don't get me wrong, I don't recommend whether Stareit is good or not, worth or not worth. 

The last 3 quarters divvi goes as: 2 sen, 1.79 sen, and now 1.67 sen.
I thought after injection of those new properties, there is a chance to move back to 2 sen within 2 quarters after the dilution effect. Looks like it's going to take more time now. Anyway, I'm fine with it actually. Although it can't go back to previous yield of 8+%, as long as it can stay above 7.5%, I'm happy to hold it. 

A factor that is easily overlooked in the reduction of EPU and DPU of ARREIT in Q3 and Q4 is the upward revision of manager fees and trustee fees in mid-June 2010.. This may not seem significant, but manager fees and trustee fees have collectively increased by about RM405k in Q3 and Q4 respectively when compared to Q2 before the revision was done.. This shaves off about 0.7 cents per unit from ARREIT’s EPU..

Now for some meaningful comparison, lets adjust Q4 2010 for this upward revision of manager & trustee fees of approximately RM405k and the one-off corporate exercise expense of RM675k.. This would make the adjusted EPU to be about 1.951 cents per unit for Q4 2010 with 573 million units in circulation.. The realized EPU for Q1 2010 is 1.958 cents per unit with 431 million units in circulation..

Looking above, the dilution in EPU due to the acquisitions in May 2010 would certainly seem so small now that you may actually choose to wonder if there’s any.. 
Of course, we tend to look back at the rather good things in life  – such as  ARREIT’s 1.9997 cents distribution with an EPU of 2.1050 cents for Q2 2010.. However, we need to consider the fact that it recognized proceeds from compulsory acquisition of land by the gov’t of RM2m in the income statement.. Stripping this one-off proceeds of RM2m, EPU would be only 1.753 cents per unit..

So, truth be said, ARREIT’s EPU has actually increased from Q2 to Q3 & Q4 when the one-off items are taken off..

Every reit won't grow until rental revision become higher.
It is same across.

We see Axreit (or any other reit) distribution grow mainly because of properties portfolio expansion, not because the properties rental become higher (although some did due to rental revision, or new lease) or through higher gearing than previously.

Atrium portfolio staying the same since its first day of listing, so you don't see the distribution grow.

Same with Stareit (before the rationalisation proposal).

Let analyse why sell :

1. Higher interest rate, lead to higher lending/gearing cost of the reit, dragging down the distribution.
2. Difficult of getting tenant after old lease expired, distribution going down. Atrium once lose the tenant on one of its properties, lead to severe distribution going down, whereby drag down the price to 60~70 cents.
3. Properties sector is going to be in bad shape across.
4. Have better opportunities with others by utilising the money proceeded from the sold reit, which yield better than 6-7% yield.
5. Higher FD rate. Reit doesn't provide significant different in yield with FD.

Reit is never the same with ordinary stock whereby profit and dividend can go higher and higher depended how much the company bring in the business, while reit cannot, you have 1 property, the most you can have 1 tenant for the whole property.

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Added on April 30, 2011, 1:13 am

Until or if the interest rate increase affect the refinancing cost or borrowing cost which is not with fixed rate.

Most borrowing under reit is secured with fixed rate for short medium tenure. So until new refinancing cycle take place, we don't see much impact on the EPS eventually DPU.

But interest rate increase mean higher FD rate, which in turn closing the gap between reit yield and FD rate, which make reit less as attractive as before.
But I don't see FD rate is going to increase >3.5-4% for near future even 2-3 years down the road. Just my view though, I could be wrong.