Hi everyone on this forum, i'm new to reit investment, at this stage i'm doing some fact gathering.

Can anyone comment on these questions:

1) If i bought a unit of REIT at RM1 and the dividend paid at the time of purchase is reported as 7 sen.  That means i have a dividend yield of 7%, is that right?

2)  For example, 2 years later, if the price of the unit of REIT that I bought at RM1 goes down to 80 sen, does the dividend paid is still at 7 sen? 

3)  If the answer to question 2 is yes, then if i buy some more of that REIT at 80 sen per unit, assuming the dividend paid per unit is still at 7 sen, that means my dividend yield is 8.75%, is that right?

4)  So it means if the price of the REIT goes down, and assuming the dividend amount paid is the same, then the dividend yield % goes up? Is that right?

I would appreciate if all the REITs sifu here can comment on my questions here.

Thank you.

there's no such thing like every distribution must be the same....... & normally i would prefer to calculate the yield based on annual total distribution

Hi everyone on this forum, i'm new to reit investment, at this stage i'm doing some fact gathering.

Can anyone comment on these questions:

1) If i bought a unit of REIT at RM1 and the dividend paid at the time of purchase is reported as 7 sen.  That means i have a dividend yield of 7%, is that right?

2)  For example, 2 years later, if the price of the unit of REIT that I bought at RM1 goes down to 80 sen, does the dividend paid is still at 7 sen? 

3)  If the answer to question 2 is yes, then if i buy some more of that REIT at 80 sen per unit, assuming the dividend paid per unit is still at 7 sen, that means my dividend yield is 8.75%, is that right?

4)  So it means if the price of the REIT goes down, and assuming the dividend amount paid is the same, then the dividend yield % goes up? Is that right?

I would appreciate if all the REITs sifu here can comment on my questions here.

Thank you.

Hi everyone on this forum, i'm new to reit investment, at this stage i'm doing some fact gathering.

Can anyone comment on these questions:

1) If i bought a unit of REIT at RM1 and the dividend paid at the time of purchase is reported as 7 sen.  That means i have a dividend yield of 7%, is that right?

Yes, gross yield is at 7%, but net yield after tax could be different.

2)  For example, 2 years later, if the price of the unit of REIT that I bought at RM1 goes down to 80 sen, does the dividend paid is still at 7 sen? 

Depends, if it drops to 80 sen chances are the dividend payout has dropped so the price will equally drop to reflect the "market expectation" of 7% (if it used to trade averagely at about 7% yield). REITS usually trade according to some sort of expected yield.

3)  If the answer to question 2 is yes, then if i buy some more of that REIT at 80 sen per unit, assuming the dividend paid per unit is still at 7 sen, that means my dividend yield is 8.75%, is that right?

Assuming it stays that way, then yes if excluding tax.

4)  So it means if the price of the REIT goes down, and assuming the dividend amount paid is the same, then the dividend yield % goes up? Is that right?

Yep, its similar to bond price movements and playing style, you try to lock in a high yield (oversold/underappreciated price), and aim for capital gains on top of that.

I would appreciate if all the REITs sifu here can comment on my questions here.

Thank you.

replied as above.

Thank you very much on everyone's answers!  Just one more question (to see if I understand all the explanations correctly):

So if i bought at RM1, and dividend paid is 7 sen, that means yield is 7%.  Then if the REIT price goes down to 80 sen, then my dividend paid will mostly likely be 5.6 sen (but yield still at 7%), is that right?

Please comment.

Dividend per unit is not based on the market price of the share. It's based on whatever distributable income is available and the amount of share units that it is divided upon.

Dividend yield is sort of a measure of return that you are getting in relation to the price you are paying for the share. In layman terms, that is.

Thank you very much on everyone's answers!  Just one more question (to see if I understand all the explanations correctly):

So if i bought at RM1, and dividend paid is 7 sen, that means yield is 7%.  Then if the REIT price goes down to 80 sen, then my dividend paid will mostly likely be 5.6 sen (but yield still at 7%), is that right?

Please comment.

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Added on November 23, 2011, 12:38 pm

Hi all Sifus, need further clarification on this:

So if I am looking for a fixed income cash flow every year, then will the price movement of the REITs affect my annual income cash flow?

For example:

If I invest RM10k (on 10,000 units at RM1 per unit) with a yield of 7% p.a, I get RM700 per year.

If 12 months later, the price of the REITs per unit goes down to 80 sen, (my capital invested will have a market value of RM8k), but will the dividend that I get paid stays at RM700 like the previous year?  Or it will be at 7% on the RM8k?

Please comment, thank you!

Yep, yield is at 7%.
But your train of thought is a bit off. Dividend paid won't be based on the expected yield, but rather the price will base itself on the dividend paid.

So it all depends on the distribution per share of the REIT. If it falls or is expected to fall, then price will factor it in, and drop to reflect the new yield.

E.g.: 7 sen yield on RM1, sale of property results in drop to 5.5 sen yield. Price will be expected to fall to about 78 sen. unless there are other factors like proceeds from sales to acquire a super high yield investment, then price will move to reflect that potential instead.

Circumstances will also affect the premium of the REIT. E.g.: Sunreit and CMMT, both big names have a lower average yield because their demand is strong and people are willing to pay a higher 'premium' (sacrificing yields) to own the stock. Personal choice.

Hope it helps.

hows things looking for PAVILLION reit ?

MIH is pleased to announce that the initial public offering of Pavilion REIT
(Offering") whereby 31,000,000 Offer Units which were made available for
application by the Malaysian Public has been oversubscribed and balloting of
successful applications was conducted this evening.
A total of 9,446 applications for 232,303,600 Offer Units were received from
the Malaysian Public for a total of  31,000,000 Offer Units allocated for
public subscription, which represents a subscription rate of 7.49 times.
All Notices of Allotment for the Offer Units under the Retail Offering will be
mailed to successful applicants on or before December 6, 2011.