According to the schedule by Maybank IB, Tower REIT has 9m ST debt and Total Debt is 114m. But why is the ratio at 92%?

But ST debt is only 9m out of the total 114m, it couldn't be 92% right?

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Added on March 24, 2010, 7:23 pmI favor Tower REIT which is valued 30% under it's NAV, the most undervalued among all.
But I wonder why there is so little discussion here.

This post has been edited by kbandito: Mar 24 2010, 07:23 PM

Let's jump out from REIT investor's POV and look at Sunway REIT's listing.

The way that Sunway Group wants to start off Sunway REIT is as below:
i) Sunway sells some of its assets to Sunway REIT.
ii) Sunway REIT gets investors to subscribe their units to finance the purchase.
iii) Sunway REIT pays Sunway Group, Sunway Group gets the money.

My doubt is on the intention of Sunway Group, they sell off their assets within their group (even though the management might not be the same).
Is the valuation going to be true and fair? In Malaysia valuator can be manipulator, they are paid by fees.

Good and bad for REITs and residential investing.
You can leverage in residential investing, the risk is there but less risky than common stock, illiquid as mentioned.
You cannot leverage in REITs (unless you take personal loan etc), very liquid but COCR is sometime less than residential investing?

Does margin apply after T+3?

CapitaMall owns 61.9% of Sungei Wang Plaza, the remaining are strata-titled units which are owned by individual.

Speaking of the Japan Resort that Starhill mentioned to buy, I don't see any official announcement on the proposed acquisition at Bursa website.
Is it really coming?

PKNS is buying ARREIT

If you read the quarterly report carefully, the gross revenue of RM72,445,000 for quarter ending 30 Sept 2010 is actually for the result covers 20 May 2010 to 30 Sept 2010, approx 130 days of operation instead of typical 90 days for a quarter.
Page 12 of the quarterly report.

Niseko Village maybe?

I do not understand why the combined yield from the 110 units Residences @ Ritz-Carlton is so low at 5.50%.
JW Marriot is also low at 6.43%, while all the other assets yield range from 7.0% - 8.66%.

Projected DPU is 6.89 cents after acquisition, 6.49 cents was before acquisition.
Serviced apartments generally command the same if not higher occupancy rate than 5-star hotels.
My concern is that Residences@ Ritz Carlton is solely leased to Starhill Hotel Sdn Bhd, which is a wholly owned subsidiary of YTL, if the yield is only at 5.5%, does that clearly say that it is in favour of YTL instead of Starhill?
Vistana KL is at 8.2% yield and Ritz Carlton Hotel is at 7.7% yield.

However 73% of their assets are prime and freehold, 27% are out of Klang Valley and all leasehold.

The overall yield on asset for Starhill is still more than 7%.

CapitaMalls Asia Limited acquired Queensbay Mall for RM730psf and the right of first refusal is given to CMMT.
Initial property yield at 5%.

Axis REIT sold Axis North Port LC 1 for RM14.50million when the Net Book Value as at 31 Dec 2009 is RM15.31million.

REIT can enter to a forward purchase agreement to buy an under construction property, which is to mitigate construction risk.

it is covered by 15 years rental agreement

Starhill owns some very quality asset in very good location

The good thing about Al-aqar is that it achieves 100% occupancy on all the assets and less administration costs compared to retail and office REITs.
SunREIT spends 25% of their rental revenue on administrative cost, Hektar spends 39% despite they achieve a very good rental yield from the 3 shopping centres.
50% of Sunway Carnival Mall's rental income goes to expense, what's your say on this?
Healthcare industry is recession proof, rest assure.

By the way 54% of Starhill's assets are in one of the most prime area in KL.

They made RM1,054 million acquisition.