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 REIT V2, Real Estate Investment Trust

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ripalo
post Feb 16 2011, 08:49 PM

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QUOTE(cherroy @ Feb 16 2011, 05:28 PM)
Thanks for the update and analysis.

NAV should be rather constant throughout if there is no properties revaluation.

Btw, I haven't look into Arreit report yet.


Added on February 16, 2011, 4:30 pm

Revaluation doesn't affect anything nor any single cent of cash being earned, until one day the properties being sold off.

A simple illustration.
It is just like you bought a property 100K 10 years before, now market valuation is Rm1 mil, but do you have 1 million in hand now?
*
Hi Cherroy,

I'm just 20 years old (becoming 21 in few months time) and was wondering where to put my money. So i did a little research and found AS1M (which was sold out). Later I went thru FD but still felt the % was too low. So I read up about REIT and I think I found the perfect solution. With about 6% gains, low risk.....dividen type, I think it's more to my type (cause I don't understand much about unit trust or shares yet).

As such, I would like to ask you a few questions :

1) I need to be 21 yrs old before I can put my money in REIT or now also can?
2) I can buy REIT through the stock market thing on CIMBClicks/Maybank2u right?
3) I have about 1500 in my savings currently. Put it in REIT for long term will be better than FD right? (thinking long term)
4) I read thru Malaysia REITsthis graph but don't understand. For returns right, looking at the DPU more important or looking at the yield more important? I got the impression DPU more important, so the yield means nothing in terms of dividends wise?


Added on February 16, 2011, 8:57 pm
QUOTE(rosdi1 @ Feb 15 2011, 09:26 PM)
For short term ALAQAR look very good .
TP: 1.28
Time frame 20 trading days
*
Sorry for being a noob. Buying REIT got time frame of 20 days one meh? I thought is just buy and keep, then sell whenever you want?

This post has been edited by ripalo: Feb 16 2011, 08:57 PM
ripalo
post Feb 16 2011, 09:16 PM

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[quote=sharesa,Feb 16 2011, 10:07 PM]
[Sorry for being a noob. Buying REIT got time frame of 20 days one meh? I thought is just buy and keep, then sell whenever you want?
*

[/quote]
no time frame. The best is buy and keep , treat as your alternative FD with some price fluctuations.
Calculating yield ( DPU/reit price) is important, personally I feel , as long as yield >7.5% is attractive.
*

[/quote]


Hmmm, according to your same statement, and my website...do a general comparison.

Tower has price of 1.25, DPU 5.50 and yield of 8.8%
However,
Sunway has price of 1.05, DPU 6.70 and yield of 6.381%?

If according to your formula, DPU/Reit price..... shouldn't sunway have a higher yield than tower?

Also, in this case, would it be better to buy tower or sunway? My idea is to buy sunway because the price is lower and the DPU is higher. Would I be correct or wrong?

If I'm correct, then the yield doesn't mean anything?
ripalo
post Feb 17 2011, 01:19 PM

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QUOTE(cherroy @ Feb 16 2011, 10:20 PM)
1) this as same as ordinary stock, 18 years old can open account already
2) Yes, just as same as ordinary stock
3) Reit risk is different with FD. You can lose money in reit. Although FD is the benchmark, you cannot treat it as same as FD. Do in mind that some overseas reit did go under, due to high leveraged and property price plunging.
4) DPU is the one dictate the yield

Yield = DPU/share price


Added on February 16, 2011, 9:23 pm
Tower DPU is not 5.50, something wrong in the figure.

Sunway yield is lower, but Sunway properties portfolio is different with Tower, and somemore Sunway has high liquidity as well much bigger in term of size of reit, which is more preferred by fund managers.
Tower is more about office space only, while Sunway is more hotelier and retail.

You can never say which one is better, always got its trade off.
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Hi cherroy, thx for your help. But looks like I won't be able to trade shares till October.
Damn rule says its 21. sad.gif. Even when I asked the stock manager he did not know until he checked it up with hq.....sad.gif
ripalo
post Feb 17 2011, 06:14 PM

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QUOTE(teehk_tee @ Feb 17 2011, 07:11 PM)
i opened my first CDS account when i was 18 smile.gif you should be able to do it with no problems.
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This now I went to maybank he say 21 yrs old.

I went to CIMB the guy said 18 yrs old but must have min. 10k.

You guys know what is the actual condition? Seems to me that maybank and CIMB guys don't really know what they are talking.

I only have 1k...plan to buy REITs....just better than put FD la.....

Also, cimb or maybank have less brokerage fee? Coz im buying like 1k only....if brokerage fee too high then no point d right?
ripalo
post Feb 17 2011, 06:49 PM

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QUOTE(teehk_tee @ Feb 17 2011, 07:33 PM)
lol, they don't know what they're talking about.
u can open a share trading account with rm 0, and over 18.

standard brokerage for margin account is around 0.4%, for cash (no margin) account is 0.1%, but that doesn't matter since you're using less than 5k. look for brokers with lowest minimum commission instead to save on commission.

dont know about the rest but hong leong cash acc is 0.1%, rm8 min. which works out to about 0.8% per transaction in your case, so you'll need to account for that when u decide whether to invest in REITs or not.

hope this helps.
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Wow....rm0 a....ok...i never knew that LOL. i thought is 1k or 10k nya...

Hmm, I will go and ask hong leong abt their package then. wink.gif

Thanks alot for the help teehk.....
ripalo
post Feb 17 2011, 08:15 PM

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QUOTE(Bonescythe @ Feb 17 2011, 08:01 PM)
The bank staff reply tell u that they are "noob" lolz.. Put FD.. Hahaha. Why they want to care about what you want to do with your money. Maybe they do not even know how to invest.

When i open with PB Bank, i only need Rm30.. After opening, I got an account, a CDS account, balance RM10 inside.

I think they want to push you higher end, so that they can get commission..? Anyone can confirm this (that there will be commission for new subscriber?)

Cash account does not need any money in it. You do not put in money, you cannot buy anything. That's it...
And if you only have 1k, and want to buy REIT... Yes, It is ALRIGHT!
In a long run, if the REIT really does perform, you will get real good returns in fact.

1k can buy 10lot (1000 shares) at RM0.84/share of STAREIT, with some balance left.
STAREIT yield, worst situation - 5% (Still better than FD), and you get bonus of capital appreciation.

Greatly encouraged to Invest while you are young. Go and pursue it. Try Hong Leong, PB Bank as well.
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Can do online trading and need rm30 only......zzz....f***ing maybank and cimb guys....now i wasted my money on fd....f*** them.

ripalo
post Feb 17 2011, 09:41 PM

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QUOTE(2010May @ Feb 17 2011, 10:32 PM)
You can cancel your fd.. Don't need any money to cancel it (just lose few days interest = less than RM0.50).
*
Oo...don't need to pay anything?

So wait, if i want to register for itrade or something, can someone tell me the PROPER PROCEDURE so i can teach those noobs?


Added on February 17, 2011, 9:50 pmI know this is the wrong place to put this but I just want one statement here.

I recently go to maybank, cimb bank and also easy bank ask abt fd details and investing details. All of them giving me xxxx answers. The one in easy was the worst. Go there he don't even know FD rates. ==. Some more tell me FD got 3 kinds of interest. Daily, monthly, yearly. Really want to kick his ass. What happened to quality service in the banking industry.

Maybank - lcct
CIMB - nilai putra
Easy - nilai inside 9 avenue.....

This post has been edited by ripalo: Feb 17 2011, 09:50 PM
ripalo
post Feb 18 2011, 11:20 AM

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QUOTE(Bonescythe @ Feb 18 2011, 12:15 AM)
No offense.. But maybe it is because of area you are staying that gives this kind of service.
I still remember how i open my PB Bank trading account.

1st day - Directly walk into a PB Bank branch (Raja Chulan Branch to be precised). Then get a customer service ticket. Once reach, directly tell them "I want to open a share investment account (PB Sharelink Account). She get my IC, ask me to fill up a form, and call up a representative from Public Investment Bank Bhd. After filling up, pay Rm30 for the admin fees. Then inform me that the representative will call me up to meet up and sign agreement/contract.

In the evening (Around 5pm), the representative called me. Booked him tomorrow 12pm to sign agreement.

2nd day - Went to look at the agreement. And sign sign sign. I also don't know what am I signing as well because a lot to sign, and paiseh to read page by page, he needs to wait darn long if I do so. So i requested a copy after I finished signing. Around 15minutes, finished.

On the 3rd or 4th day - Account activated and ready to trade (Wow, very fast. I heard experienced of waiting 1-2 weeks, direct sienz). The account is ready to trade. They will open 1 CDS account and link it to your share account automatically.

Overall, I am quite satisfied with PB Bank experience. Very fast.
Today PB Bank server got problem, I cannot place order. I directly called them (the hotline), and gave orders to them. No extra charges. And quick response. I feel ok with their service, but I do not hope server will ever down.. Sometimes freak us out because each seconds counts.

But back to REITs.. You got 1k cash ready for investment.. I think STAREIT will be good for you as a starting? ARREIT is also a good option. Both also able to get 10 lots within Rm1k.
Be sure that you time your entry.. Some REITs are paying dividend soon, and automatically will be higher..
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Thx for all of your replies. =)

1) Btw, Since you recommended Stareit/Arreit, can give me what price I should go in. I have did some slight research but still....LOL....need opinion of the experienced.

2) Also, do you know which REITs are paying their dividend and when? How to check?

I think I will go back to Penang to settle my banking stuff....worse come to worse I go back Sarawak to do it. =(
ripalo
post Feb 18 2011, 03:10 PM

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QUOTE(cherroy @ Feb 18 2011, 04:01 PM)
I believe there is a few divestment particularly from foreign fund.

This is same across reit, mostly down from its peak, although not significantly.
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So when do you think would be the right time to go in?
ripalo
post Feb 19 2011, 10:17 AM

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QUOTE(cwhong @ Feb 18 2011, 04:20 PM)
hektar quite attractive .....
*
hektar dividend coming out if we can go in by 4th of March if I remember correctly....


Added on February 19, 2011, 10:18 am
QUOTE(kuekwee @ Feb 18 2011, 05:02 PM)
now is rite time to go in. there is no best time.
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Lol....i'm going back to penang to open my account ASAP. hopefully they can get everything done in 3 days since I will only be there for that long. Or not I will have to go to sarawak....

This post has been edited by ripalo: Feb 19 2011, 10:18 AM
ripalo
post Feb 21 2011, 06:40 PM

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QUOTE(Bonescythe @ Feb 21 2011, 07:36 PM)
Is not Unit Trust la. Anything listed in KLSE, except those warrants and bla bla bla.. Are shares..
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Hmmm, just curious here, I know REITs aren't unit trusts. But are they trusts?
ripalo
post Feb 22 2011, 07:13 AM

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QUOTE(Bonescythe @ Feb 22 2011, 12:38 AM)
For easier understanding, maybe you can read something more practical about REITs, which is read some REITs website.

Example for Sunway REITs.
http://www.sunwayreit.com/

It will inform investor what are their property, who are renting with them, and which company is contributing the most.
There are a lot more of information out there, just that you need to spend time and look out for them.

Some other examples.
http://www.hektarreit.com/
http://www.atriumreit.com.my/
http://www.axis-reit.com.my/
http://www.tower-reit.com.my/
http://www.alaqarkpjreit.com.my/
http://www.starhillreit.com/
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Thx Bonescythe, thats really helpful for newbies like me. I looked thru a few of them few weeks back. I noticed some of them have a distribution list until 2008 or 2009 only. Website not updated? blink.gif
ripalo
post Feb 25 2011, 05:50 PM

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QUOTE(Bonescythe @ Feb 25 2011, 04:50 PM)
"X" means expiry date for dividend
"*" means this counter lately got news.. announcement or updates.. Check them by pressing F2, then press 5
"!" means this is problematic counter with cashflow problem..
Pink counter - ACE Market
Purple counter - Suspended for trading

Anymore?
*
Wow...great explanation. Ace Market means in very good condition?
ripalo
post Feb 25 2011, 06:49 PM

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QUOTE(Bonescythe @ Feb 25 2011, 07:43 PM)
In English League, there are a lot of leagues.

English Premiere League is liken to Main Board in KLSE.
1st Division League is liken to ACE Board in KLSE..

So those pink counter are 1st division player lo.. smile.gif
Most of them are technology markets.. Most la..
Hope my explanation is easy enough to understand?
*
Lol...very good explanation. Although I don't know much about football but I think I get you. Thx bonescythe. Btw, I went to the bank that day again and realised. Normal CIMB bank doesn't provide iTrade. only CIMB investment banks do. =.=''. Looked like a total noob.
ripalo
post Feb 27 2011, 10:59 PM

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QUOTE(chocobo_2005 @ Feb 27 2011, 01:29 PM)
Thanks sharesa, btw how you find those information?  I search google before, even http://mreit.reitdata.com/ also didnt mention about Arreit
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Arreit = Amanah Raya REIT. I got confused the first time too.
ripalo
post Mar 7 2011, 07:31 PM

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Hmmm, I tried buying REIT today. Had a few problems though.

1) I checked eDeposit in my Cimb iTrade account. Apparently I deposited RM1500 but it did not come out in my Cimb eSettlement. And of course my credit limit = RM0.00

2) The transaction cost for RM100 is RM29.03, RM1000 is RM 29.30. Why is it so much? I thought they said Brokerage fee is 0.44% only? It looks like net transaction fee starts from RM29? Why so?
ripalo
post Mar 8 2011, 12:06 AM

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QUOTE(yhtan @ Mar 7 2011, 11:20 PM)
to answer your question:

1)The deposit amount will not show in the same day, most likely it will show on next working day or next 2 working day

2)Is it shown on the bottom left part? cimb itrade minimum brokerage is RM12, RM28 is for phone brokerage
*
1) Orh...it has been 1 working day. I guess just have to wait till tomorrow.

2) Erm....yea...bottom left part of the trade...right before the trading pin. maybe it's as cherroy said including two times? or is it supposed to be rm12 only.
ripalo
post Mar 15 2011, 09:06 AM

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QUOTE(HJebat @ Mar 15 2011, 09:39 AM)
Why do people tend to compare FD rate with REIT's yield?
What about ASW / ASM dividend yield? Aren't those a better comparison with REIT dividend yield?
*
Hmmm. REIT dividend is higher?
ripalo
post Mar 15 2011, 05:36 PM

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QUOTE(HJebat @ Mar 15 2011, 02:43 PM)
REIT dividend is about 7-8%. Minus withholding tax, should around 6-7%. Almost the same as ASW / ASM. This should be a better comparison than FD, no?
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haha. I was not posing a question. I was answering one. Lol. Thanks anyway.
ripalo
post Mar 15 2011, 09:42 PM

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QUOTE(2010May @ Mar 15 2011, 10:13 PM)
REIT dividend is something like fixed income (it is mainly depends on rent except BSDREIT) as compared with ASW / ASM.

REIT / FD / Bond are almost like fixed income (although REIT / FD / Bond are different).

ASW / ASM provide dividend which was quite constant but it still depends much on the investment profit that year. So people usually compare REIT with FD.
*
Furthermore not everyone can buy ASW/ASM. (especially non-bumi)

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