It can be advantage and disadvantage as well.
Advantage, already said.
Disadvantage, if rental market exploding to upside, you don't get the increment of income like those shorter lease one especially for the like mall or office type.

To me if I want to opt for a stable fixed income, Stareit is one of good choice, aka don't mind getting 6.6% yield with little capital appreciation/depreciation issue.

Little worry on tenant issue, as already under long term lease, apart from tenants close shop (which is another story)
Little worry on financial market credit freeze (like 2008) that can affect the refinance cost and ability due to low gearing.

But, upwards potential is capped (so does for most reit), due to fixed lease rate while there is only 5% increment of lease rate for every 5 years.

No.
Me never a landlord before, but parent did (the experience come from their house).

Penang properties is blooming for the last 5 years or so already.
Landed house in the island prime area, most at least 750K and above.
Some previously landed house that was sold at 1.x million years back, people complained expensive, now selling 2.x million.
Middle/lower upper class condo around city, at least RM400-550 per sqft.
There are high end condo with size 3000-4000 sqft as well, so you do the math, how much those condo cost.

Do not rely any website to count, count your own is the best and most accurate answer.

It is fixed, disregard the hotel profit or loss.
You rent the premise to the hotel management company, you received the rental, the rest of hotel business issue, is none of your business.

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Added on March 20, 2012, 2:09 pmThe data is accurate, but we cannot rely on past data to count, we need to latest and projected DPU aka from its operation.
Previously Stareit distributed the realisation of gain of disposal of Lot10 and Starhill to Starhill Global, those are not repetitive in the future.

In the previous proposal of changing Stareit into hospitality reit has stated clearly the projected DPU may be around 6.9%.
http://announcements.bursamalaysia.com/edm...cquisitions.pdf

This post has been edited by cherroy: Mar 20 2012, 02:09 PM

Same across even for CMMT, Sunreit, those retailers in the mall business has nothing to do with them.
Having said that, if the mall business is good, means the future you have a chance to raise the rental rate.
You hope the tenants doing well as well, although it is none of the reit concern.
Tenants doing well can pay rental on time, have a chance to renew and raise rental rate as well when lease expired

Reit is about rent/lease the property only.

Ya, this one is a bit unique.
Until now, I don't understand the mechanism, so no invest in it.

This post has been edited by cherroy: Mar 20 2012, 03:18 PM

The more appropriate way to evaluate is either debt to equity or total debt/total asset.

At current moment, the guideline for reit that cannot exceed 50% gearing ratio is total debt/total asset.
The logic is the asset is an valuable asset that can be sold off to pay debt if there is anything happened on the reit.

Assessing the debt time, is about how and ability to repay the debt.

Future expectation about its DPU from its completion of acquisition that turn into hospitality reit may be about 6.9 cents.

It appears in both.
If not, how to balance the book.

Balance sheet increases in term of fixed asset value column.

To evaluate a fund, assess the balance sheet is healthy or not aka be sure healthy cashflow, manageable debt level, then how much yield one can get.

All are important factors to look at, we cannot look at sole alone figure to evaluate.

First, sorry my mistake, the projected DPU is 6.9 cents not 6.9%.

Because 2011 the acquisition is not completed yet after 3rd to around 4th Q, so little contribution to the earning,
while the 2011 DPU they do distribute the realisation of gain of the disposal of Lot 10 and Starhill,

It is under proposal stage, need paper work time.

By the way, Axreit result is out, and DPU for the Q is 4.3 cent.

Axreit already out,
next week or early May, most may out already.

Amfirst is semi-annual distribution, not quarterly.

By the way, Amfirst is proposing right issue as well.

Reit normally has certain amount of borrowing, which is renewed/refinanced from time to time.
Reit also raised debt to finance new acquisition, if there is any, or wish to.

There is not much an issue if the property portfolio is operating well and generate profit to service the loan, and ability to refinance from time to time.
From the financial report show, this is more about refinancing its current liabilities which may be due soon, if not mistaken.

It is 2 different thing.
One is equity fund that can buy property stock, reit, property related stocks.
One is purely Reit aka the underlying stocks income is based on rental only.

E-div.

Invest in reit is about economy and property market, not about general election.
There is nothing to worry about pending general election.

It is preferably to enter reit at slightly right time, to get better valuation and yield.
Reit price generally do not fluctuate much.

The more important is to look on the reit underlying properties portfolio, and ability to lease.
Reit is not automatically must be good, and can buy and hold over the long time, and automatically give you good return.
There were poor reit performance as well.
Some study on the reit is needed.

Diversify 20% cash into reit?
I already owned a number of reit for number of years already...

Reit does give distribution, so when fund received distribution time (while reit ex-d price still the same), NAV of the fund will increase.

Property and reit equity fund is not the same with one invest purely in reit.
Equity fund can invest in ordinary property development (normally).

The market already anticipated.
Krisasset share price already surged from last year Rm4.xx to Rm7.xx


So if one bought at 7.xx currently of Krisasset, it may become (solely based on the info posted, I personally do not go through it (yet),
one ended up with Rm2.88 + 6,198 IGB reit.

So the key is (whether to buy KrisAsset now at RM7.xx), what is the valuation for IGB reit, and IPO price.

Pana,
Moppy calculation seem more correct.
Check 10.2 on proforma I

Total share will be 520 million, not 440 million (due to bond conversion).

So, personally I see Kasset should be toppish not exceeding Rm8.00.
Correct me if I am wrong.