U mentioned earlier about better liquidity & sizing attracting fund managers and institutional investors to CMMT and SUNREIT even though their DY% is miserable compared to BSDREIT, TWRREIT, etc.

Wouldnt this "liquidity" be a two-edged thing?
I mean, the last i checked for the few days' tumble, heaviest casualty in terms of % of price falling were CMMT and SUNREIT.

Just thinking in terms of "reason of buying REITs" to a small fry like me lar - if i buy into CMMT or SUNREIT and it's nearly as volatile as things like PBank, Digi, LPI, why do it for the miserable DY%.

Thus, picking your brains / opinions:
Is there any major difference between such "sized & liquid" REITs like CMMT or SUNREIT (other than sector and tax % on dividends)
VS
"blue chips & dividend paying" like PBank, Nestle, Digi, etc
that small retail investors (not traders) to leverage on?

My apologies if it's an obvious Q, newbie alert here

Imagine you have 100 million to invest in reit, do you invest in a reit that has only 200 million unit?
You will have hard time to dispose, same with buying time.

Liquidity means you can dispose or buy in large quantity with ease.
It doesn't mean its price cannot swing more.

Low liquidity stock, buyer Q 1.20 with 50 lot, seller Q 1.35, you have 1000 lots, you will have difficulty to dispose in one shot.

I realise that I couldnt hold tight my reits for more than two quarters. *shame on myself*

No doubt the yield is OK (between 7-8% based on current price), but appreciation wise is slower than growth stock such as Maybank, Public Bank, Gab, Nestle, F&N, Bkawan, Lpi, Carlberg, Dlady, KLK, LPI, PPB, Bat, Jtinter etc.

It depends what you want actually. 

Ordinary stock income tax rate is 25%, reit 10% witholding tax.

So those ordinary stock generally has 5-6% yield, the net yield is around 4%,
reit 7.7-8% % net yield is 7%.
So there is still a gap of 3% net yield.

That's why I find difficulty to buy CMMT and Sunreit, despite quite like their properties portfolio, because it is better for me as retailers to buy those stocks that you mentioned at roughly comparable yield.

Reit is more like alternative to FD, instead compared head to head with ordinary stocks.
At least locally, because local reit is conservative in nature, as compared overseas reit with higher leverage.

I realise that I couldnt hold tight my reits for more than two quarters. *shame on myself*

No doubt the yield is OK (between 7-8% based on current price), but appreciation wise is slower than growth stock such as Maybank, Public Bank, Gab, Nestle, F&N, Bkawan, Lpi, Carlberg, Dlady, KLK, LPI, PPB, Bat, Jtinter etc.

I realise that I couldnt hold tight my reits for more than two quarters. *shame on myself*

No doubt the yield is OK (between 7-8% based on current price), but appreciation wise is slower than growth stock such as Maybank, Public Bank, Gab, Nestle, F&N, Bkawan, Lpi, Carlberg, Dlady, KLK, LPI, PPB, Bat, Jtinter etc.

pana jie, i notice u type lpi twice. u must really like lpi

To play with them And earn money

check in.

let start poll...

AXREIT - 2.560
HEKTAR - 1.290
ARREIT -  0.900

which one would you enter?  what the yield return will get?  hmmm

wongmunkeong,  mind to tell me why BSDREIT?  hmmm

It's a plantation REIT, getting $ from plantation management AND a % of the sales of oil palm. It's past 2 to 3 years' D/E is low enough + the ROTA/ROE looks good enough and at $1.42, a slight discount from its NAV/NAPS with expected gross DY% about 8%.

Anyways, i'm just aiming to get into plantation REIT & healthcare REIT. Healthcare - currently way too low DY%, thus plantation REIT first lor - I'm an opportunist . Heck even if office REITs like TWRREIT, UOAREIT or AXIS falls, thus DY% goes up, enough i'll take a nibble while keeping enough ammo to still get enough healthcare & plantation if opportunity arises.

Oh, 1 more thing - nothing scientific, just a gut feel though, with food prices climbing and stuff + population growth, food related & land related companies' returns will keep climbing.

what do u think about STAREIT, a 100% hotel REIT

Oh oh.. no wonder the "free fall" in ARREIT earlier.

http://biz.thestar.com.my/news/story.asp?f...85&sec=business
PETALING JAYA: Standard & Poor's (S&P) has withdrawn all ratings for AmanahRaya Real Estate Investment Trust (AR-REIT) at the company's request after the rating agency gave it a “negative” outlook.

The Singapore-based S&P affirmed its BBB- long-term corporate credit rating and axBBB+ Asean scale rating on the company but said the “negative” outlook reflected its assessment that the extraordinary support from the Government could weaken if a proposed transaction between AR-REIT and Perbadanan Kemajuan Negeri Selangor proceeded as planned.

AR-REIT could not be reached for comment. A Singapore-based S&P analyst said he could not disclose the reasons for AR-REIT's request to withdraw all ratings.

The analyst said the BBB- rating comprised two components its stand-alone credit profile and the “moderate” likelihood of extraordinary Government support, based on S&P's criteria on government-related entities.

Although AR-REIT enjoys stable and resilient cashflows, high tenant security deposits and an improving market position in the Malaysian real estate investment sector, its credit profile shows a high exposure to the office property segment and increasing leverage.

AR-REIT is majority-owned by state pension fund Kumpulan Wang Bersama (KWB). The trust owns properties including Holiday Villa hotels in Langkawi and Alor Setar as well as Segi College branches in Kota Damansara and Subang Jaya.

The Selangor State Development Corp (PKNS) plans to inject three properties into AR-REIT in exchange for RM165mil cash and a 20% stake in the trust.

If this goes through, KWB's stake in AR-REIT will be diluted to 43% from 54%. One of S&P's rating criteria for government-related entities is the support of Government, measured by the latter's stake in a company.

“The proposed transaction with PKNS may result in the diminishing and perhaps eventual disappearance of Government support for AR-REIT,” the analyst said.

S&P also said in a statement that it could have revised the outlook to “stable” if the transaction with PKNS did not proceed, which would have resulted in KWB maintaining its majority shareholding in AR-REIT.

what do u think about STAREIT, a 100% hotel REIT

Based on this: http://mreit.reitdata.com/ +HLeB's gross DY% , DY% looks ok-ish
It's current ration & acid test ratio is strong 4.61 (ie. can pay fast, $4.61 for every $1 owed), most probably due to its low D/E of 0.18 only.

However something weird here (see snapshot) - ROE & ROTA past 2 to 3 years, looks as though something was disposed and now oh oh.
ie huge spike in 2009 and crash in 2010.
Operating cash flow also looks to be hit in 2010 too.


Very very mixed signals - thus, i'm steering clear of it as i've got other REITs options
Anyways, not in my basic / simpleton approach of "filtered to watch" list of REITs, even for opportunities