sunway reit's ipo is set at july 8.

Yup, 6.8% is a bit low.

But the quality of the properties like Gurney plaze is a strong selling point, as the properties is
1. in strategic location, land value for sure appreciated in the future as situated or surrounded by luxury condo, with multi-million properties surround.
2. Strong rental market, fully occupied, and potential rental increment in the future.
3. Mall is well maintained and crowded.

Maybe they "over declare" their property value to their own REIT's, thus selling the properties at a higher price. When the property is sold at 'above' market value, naturally the yields will have to come down because the rentals cannot catch up with the rich valuation.     

But how can the REIT own Sungei Wang Plaza? I thought that its lots are completely owned by private individuals. Did the REIT buy many lots from individuals? That would explain the low yield. It must have been expensive to persuade people to let go of their Sungei Wang lots...

Should be base on their NAV

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Added on June 24, 2010, 3:05 pm

Those fair value is subjective matter.

Axreit is given higher TP mainly due to
EPS is showing gradually improvement, resulted from higher rental revision, constantly new properties injection to boost its earning, and diversified.

Remember reit price/TP set mainly is base on yield attractiveness.
So does for ordinary share out there.

It is how much return can get from you invested money.

Yes, 10% off from dividend. Comparing to previously 15%, the witholding tax is reducing. Our local has been asking government to drop the tax to bring REITs more lively.

Price never comes back has a lot to do with company earning ability afterwards, not because the dividend ex that make the share price goes down or cannot go back up.

If a stock is constantly paying the same dividend or higher than previously 99% of the chance the share price will reflect to what its dividend ability (provided those dividend is sustainable in the first place through operation business profitability)

For eg.

If a stock can give 10 cents currently with Rm1.50 and constantly throughout years and decade, after 15 years, its share price goes to zero?
It is already a bargain after 5 years at Rm1.00 with 10 cents dividend.
(if as said the share price never move or goes back up and goes down with ex-dividend)

QCAPITA @ 1.00 !

If you intend to hold it long term and just getting the dividend, as long as the dividend is good enough, who care about market attention on it.
You are not going to sell if a stock giving good dividend throughout decade.

In fact, less attention, means you could potential buy it more cheaply.

The most important is the company's long term prospect is intact and good while company is generous on dividend policy based on its profitability.

If look for short term or trading purpose different story.
Dividend play is always about long term play.

Manage to get some QCAPITA@1.01 today