Enjoy !!

Check check check..
Good season to bargain for R.E.I.T.S

Happy hunting.. AXREIT top my list again. With some plantation REITs

Me really don't have reits before...why should me buy reits?

To play with them And earn money

Hi.. I'm very new in this investment 'game'. Can you tell me more about REITS? and how to know which is good REITS or no? I've seen there're a few REITS to choose, so if i would like to invest, which REIT do i start from?

Hmm.. okay.. i've done some reading now.. I understand what are REITS already so, now.... there's one question, why issit now the best time to hunt for REITS?

This post has been edited by sampan1027: Aug 11 2011, 12:35 AM

check check in


for me reits is to generate yields (dividen) as long as higher than 7% is fine to me and the capital appreciations is BONUS if the reits i bought appreciate ....... but i was selective on my investments ...... purely office i dun like, purely warehouse i dun like .... purely plantations i also dun like dun ask me why coz this is my choice hehe

Because you like to waste money?

me eyeing AXreits too.

pretty attractive at this moment.

but I am afraid of the property bubble.
I am sure if it burst, my reits will go burst too.

pening...

in again.

aiya.. reits already >10% of portfolio. looking to accumulate hektar. enough with arreit for now until it drops below my abp @ 85

Arreit nice rebound to 0.91.
I sold Hektar 1.31 2 days back, maybe will exchange for more Arreit tomorrow, depends on price
(50% Reits now)

Checking In

---

Added on August 11, 2011, 1:20 am Nice porfolio and defensive on this market condition.


This post has been edited by CP88: Aug 11 2011, 01:20 AM

If burst, reit will have hard time as well, no doubt,
but so does banking stocks, and most stocks from construction to out there.

Property is one of biggest component in the economy.

Aiya. My abp price still at 0.92. You have a nice bargain at 0.85

manage to buy hektar at 1.29 to average down ...... a little nia

defensive mood for sister too, just sold arreit i bought 2 days back and transfer to hektar...... reason after bought i realise i got too heavy on arreit (diversify the risks)

hektar now 1.27 .. If can go 1.25 nice..

http://forum.lowyat.net/topic/1362442/+2460

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PETALING JAYA: Standard & Poor's (S&P) has withdrawn all ratings for AmanahRaya Real Estate Investment Trust (AR-REIT) at the company's request after the rating agency gave it a “negative” outlook.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.

EPF collecting SUNREIT again on 9th Aug.

S & P again !!!

haha, at least we have the same reits

Cheers Bro Tee

---

Added on August 11, 2011, 12:34 pmMy goodness. Another S&P influence. Sigh..

This post has been edited by CP88: Aug 11 2011, 12:34 PM

Bro Cherroy,

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

This post has been edited by wongmunkeong: Aug 11 2011, 12:48 PM

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.

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.

---

Added on August 11, 2011, 1:35 pmReit and ordinary stocks are different class risk exposure.

Ordinary stocks, like financial, if recession hit, NPL sky-rocketing, it can bring down a banking stock even it is a super blue chip.

Reit
Recession hit, current tenants mostly still fulfill the lease contract signed until expired, then may be difficulty to get tenant when lease expired time.
If the reit is low in leverage, no leverage, just mean no income and expenses losses only.

Yes, if reit yield is the same with a super blue chips, the blue chip may be more attractive due to higher capital appreciation and growth when good time.
But risk wise is not the same.
Reit, you will know how much you make for this year already due to lease contract signed.
Ordinary business, the business is still on going, profit or loss not yet know.

This post has been edited by cherroy: Aug 11 2011, 01:35 PM

Yeah, i understand that portion - "moving the market" being detrimental to the institutional investors when they accumulate or dispose a "small market cap" REIT vs a enormous monster-sized REIT.

Just thinking aloud and hopefully pick your experience in REITs - whether or not worthwhile these kinda monster-sized REITs with relatively low yields% at the market price
VS
common / normal stocks that's been shooting out dividends too


I'm just hoping to see / learn something i've not considered before , as i'm currently just going after the higher DY% and comparatively lower or ok D/E & higher ROE / ROTA REITs.

----------
Whoops - heheh, i replied too fast, just saw your updates/edit. Danke danke

This post has been edited by wongmunkeong: Aug 11 2011, 01:42 PM

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.

Yeah - read / heard that there are things like Mortgage REITs overseas too, buying mortgages and loan. Heheh - oo.. reminds me of those nasty CDOs that got AAA ratings in 2008's kablooey.

ok NOTED all this is ur fav or current stocks

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

I like LPI a lot too - unfortunately hit my trailing stop loss and took profits of about 40%+pa 2 days back. Held since 1st or 2nd quarter 2009.

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

Bro, play? Them REITs (bought at the right price) are like collectibles lar - buy and simpan only (while collecting dividends)

---

Added on August 11, 2011, 6:55 pmer.. i'd take D - BSDREIT - 1.42 pls

This post has been edited by wongmunkeong: Aug 11 2011, 06:56 PM

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.

This post has been edited by wongmunkeong: Aug 11 2011, 07:43 PM

thanks, wongmunkeong.. i attended a class today! thanks!

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

This post has been edited by wongmunkeong: Aug 11 2011, 08:19 PM

Nevermind

This post has been edited by dopp: Aug 11 2011, 10:24 PM

I don't really get it. What does it mean by "disappearance of Government support for AR-REIT"? It's Amanahraya Reit, Amanahraya itself is a government company, am I wrong? How can a government company not supported by government?
The injection of PKNS should be very important to its near future expansion plan, isn't it? I'd even think if the plan does not succeed, it's more bad news than the "disappearance of Government support".
What's S&P thinking? I'm really

Anyway, I switched all my Arreit at 0.89 into Axreit at 2.41 during market selldown last 2 days. Not because of this news since I just first time read this news right now. I made the switch because I am more confident on Axreit and I'm too excited to see its price dropped so much that day!

btw, nice to see a fresh new REIT thread.

any new reits coming out this year?

How come a few reit counter no activity ?

Stareit, almost all are under long term lease already.
So it is like fixed income instrument, no major upside surprise nor fear about tenant issue, (if there is no further injection).
It has low gearing as well.

It one doesn't mind to collect about 7-8% yield for next for 5-10 years, and with some risk exposure, and never consider the capital appreciation, then it is probably very suitable target.

---

Added on August 12, 2011, 11:01 amThat's why do not rely solely on published data/figure, it can be distorting without knowing the real situation.
For every 3 years reit is under property revaluation, which you see the major spike in 2009.
It never crash on 2010.
It is just revaluation surplus/profit that send the figure abnormal than usual.
Operating income wise still rather steady across.

This post has been edited by cherroy: Aug 12 2011, 11:02 AM

hmmm... big price drop in AR reit. Any idea why? I might consider getting more actually haha

Bro Cherroy - i just did a quick check (DynaQuest book).
"In FY2010, STAREIT announced a major re-shuffle of assets within the YTL Group of REITs. STAREIT will hold the hospitality assets, both local and foreign while the commercial REIT assets of STAREIT would be transferred to SG REIT. The latter par of the plan has been completed on 28/06/2010. It transfered its 2 non-tourism properties, Starhill & Lot 10, in exchange for RM625M in cash and RM405M in SG REIT's Convertaible Preference Units (CPU). STAREIT will hold on to the two properties and will aquire additional hospitality industry related assets in the future.
JW Marriot Hotel
The Residences."

Er.. in simple English, they did "dispose" to SG REITs in exchange for CPU + cash right? Maybe including the 3 years revaluation lar

This post has been edited by wongmunkeong: Aug 12 2011, 08:29 PM

jumped into some axreits
counldnt care less

the property bubble is looking to burst since 3-4 years ago.
until now still not burst.
unless blr increase dramatically.

BLR shouldnt increase unless Bank Negara Malaysia increases OPR + the last i heard, it's staying put for at least the next quarter heheh

The most BNM may do is hike another 0.25% then pause.
With current commodities price generally stall or sliding a bit, it at least temporarily relief the inflation pressure.
While economy generally is slowing down a bit, so a pause in interest rate movement is highly anticipated.

---

Added on August 13, 2011, 12:00 amDispose or not, it doesn't matter,
the 3 years revaluation already being booked into the account that showed increase in profit.


This post has been edited by cherroy: Aug 13 2011, 12:00 AM

G' morning (early morning ) bro Cherroy. Just to see if i understand properly, U mean that if STAREIT disposed its assets, it doesnt matter coz they already accounted it already in the 3 years revaluation?

I thought that if a biz that makes continuous / sustainable profits from Assets A, B, C, D, IF they sell / dispose of A & B for cash & CPU to SG REIT, then havent bought anything (well, may buy in future/planned), that affects the biz of the Co.
ie. investors may get lump sum payout dividends but in the long run...

I've seen it happening up front with EON (i was literally there) when they started "concentrating on their core biz" and sold off/spun off things like EON Bank (became EON Cap), some legal firms, etc., all of which contributed to EON's bottom line but was hocked off for mostly one-off gains. In the end, for EON lar, the cohesiveness / supply-chain control was broken + Proton's own dealership ProtonEdar (exUSPD) helped EON to where it is currently.

Er.. note that i'm not equating STAREIT to EON's hocking off its biz like EON Bank/Cap. I'm just trying to understand how it is good for a Co to sell off Assets which are making $ + how booking / accounting for them already makes it not matter. I need coffee....

This post has been edited by wongmunkeong: Aug 13 2011, 12:13 AM

Company Name : SUNWAY REAL ESTATE INVESTMENT TRUST
Stock Name : SUNREIT
Date Announced : 12/08/2011

EX-date : 26/08/2011
Entitlement date : 02/09/2011
Entitlement time : 05:00:00 PM
Entitlement subject : Income Distribution
Entitlement description :

Final Income Distribution of 1.62 sen per unit (of which 0.86 sen per unit is taxable and 0.76 sen per unit is non-taxable) for the fourth quarter ended 30 June 2011

Stareit dispose Lot 10 and its non-hospitality property is due to rationalise the group asset/reit structure, so that both SG reit and Stareit has different segment of properties.
Stareit did not dispose for the sake of raising cash.
The cash proceeded from the dispose to SGreit, was being used for acquisition/injection of new hospitality properties.

Selling off asset means realising the profit in valuation only.
Nothing to do good or bad.

Oh - STAREIT acquired the new assets for rental already? Hehhe - paiseh paiseh.. i gotta go check STAREIT's webpage

im not sure, haven't been following stareit but last i remember they proposed an acquisition of 9 properties and so far completed one (Ritz Residences, maybe Hilton Niseko or Tanjong Jara next)

a sidenote, there was a major reshuffle n a couple of RPTs in the YTL group of companies at that period of time. and stareit still holds a chunk of starhill global reit. so the disposals were merely restructuring.. cash flow wise, shouldn't be that much affected.

So regret I missed the chance to grab CMMT at 1.21!
I was hoping it to drop to 1.18 that time, so close.

Hallo hallo...did anyone know about APG reit??? APG = asia property group...is this company for real???

If someone knew bout this then pliz share wif me...thx

The website is www.apgreit.com

If it is operating in Malaysia, please check with SC, every reit needs to have SC approval before can operate.
If it is in Sg, please check with MAS.

There is a list of licensed finance institution and company that can collect/use public money for investment purposes.
http://www.sc.com.my/sub.asp?menuid=242

not in malaysia lah ..... but need clarification from SC also ...... where u found this? sounds fishy

edit: got no financial informations, no management teams info, no portfolio info ......... i'll check SC website first .....

checked: no such company/REIT's in Malaysia




“Create History with APG, Start a new Page in Asia!”

Amsterdam

Gustav Mahlerplein 3 1069 MS Amsterdam

To serve you better, APG has a dedicated team to attend to your enquiries, feedbacks and suggestions.

For General enquiries : infor@apgreit.com

For Property enquiries : property@apgreit.com

For REIT enquiries : reit@apgreit.com

This post has been edited by cwhong: Aug 14 2011, 12:00 AM

@cherroy n cwhong :
thx for reply...apgreit in asia is currently manage by cuffz holdings at singapore...website www.cuffzholdings.com

They said oledi start at malay...how come no one know it?sucksss...is it some kind of money game???

@cherroy : may i ask what is SC or MAS?got website to check on?pliz help share ya?as we are now invest alot of money there...is it safe???

Thx...

SC = Securities Commission (Malaysia)
MAS = Monetary Authority of Singapore

http://www.sc.com.my/sub.asp?menuid=242

Already posted.

The list is about licensed financial institution, bank, investment bank or company that can collect public money for investment.

---

Added on August 14, 2011, 5:10 pmFor reit
http://www.sc.com.my/eng/html/resources/stats/REIT.pdf

---

Added on August 14, 2011, 5:13 pmMAS is equivalent to SC in Malaysia

MAS - Monetary Authority of Singapore
SC - Securities Commission.

---

Added on August 14, 2011, 5:16 pmFor MAS list
http://www.mas.gov.sg/fi_directory/index.html



This post has been edited by cherroy: Aug 14 2011, 05:16 PM

MAS should be more equivalent to BNM in Malaysia. But it doesn't really matter though.

@2010 n cherroy :

Thanx for both of u...u guys r too kind...will check for it now

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Added on August 15, 2011, 3:24 amAfter i check from that SC and MAS really didnt have any listing of APG reit or asia property group or cuffzholdings...

How to do ya???can someone help me by answering my question???

This post has been edited by Paradise20124: Aug 15 2011, 03:24 AM

tmr hope Hektar dont go up again, want buy more

why bother APG while u have plenty of choices around? what amaze u to go for APG at the first place, maybe u can share ur story and let others be your judge

Read this statement from the news section of my OSK regarding SUNREIT. As I know SUNREIT is going to pay out dividend for the quarter, but what does this statement means.

Can I know why all Reits counter's par value is 0.00 ? what does it means ?

where u see?

its not 0.00

this means u will get (0.86 cent * 90%) + 0.76 cent = 0.77 + 0.76 = 1.53 cents/share as divvy

It's their quarterly distribution.
Considering withholding tax of 10% and assuming you got 1000 shares,

Taxable portion - withholding tax
0.86 x 0.9 =0.774 sen

Then you calculate the dividend after tax.
0.774 + 0.76 = 1.534 sen (per share)

So you will receive 1534 sen per 1000 shares = RM 15.34.

u mean arreit?

Thanks jutamind and lytros for confirming and the detail explanation. Really appreciate them Initially I thought, all the 0.86 cent will go to the IRB which if that's the case, then the dividend yield for SUNREIT will be pathetic. So now I'm all clear that they differentiate 2 categories of the total dividend.

Taking my entry price of RM 1.07 for SUNREIT. At 1.534 * 4 = 6.136 cents = 0.06136 cents of dividend per annum,

Thus, dividend yield = 0.06136 / 1.07 = 5.73 %.

Slightly lower than the EPF yield but of course higher than FD. Obviously, the calculation ignores the gain from capital appreciation which is irrelevant until you liquid the stock.

Very low yield considering it is a REIT stock

First of all i believe my friend when he prospecting me...term n condition seems nice enough...
But now i began to suspicious,coz of their director keep broke their promise...now when i check,there seems to be not much info they got

Juz sharing some info...apg's reit yesterday just rise to 0.23...almost every 6-7days goes up 0.01...

how do they trade ? and where you see the share price movement? all this is very interesting parts

This post has been edited by cwhong: Aug 19 2011, 01:36 AM

Sunreit's yields .. well im sure u know, are way below par.

but their capital gains (in the past) are above par.

Corporate tax for REITs is 0% compared to 10% for individual. Does that mean if I use a Sdn Bhd to buy REITs, there will be zero tax? How about normal company tax of 26%? Is it payable on REITs income received? How about if this Sdn Bhd pay out its own dividends to its shareholders? Shareholdrs might need to pay income tax on it since it is no longer payment direct from REITs itself. Appreciate comments.

same thinking here....

wanna top up on axreit too.

Corporate will be taxed at 25% so there will be no withholding tax...If i'm not wrong.

how do they trade ? and where you see the share price movement? all this is very interesting parts


Start from usd1000,3000,5000,15.000,and etc...

Example : we chose usd5000...
they split usd2500 to buy REIT...
usd1000 is to invest at milano resident at philippines or cbd polonia at indonesia...
and the usd1500 or 30% of our investment goes to company...
The embargo period is 45days

The price movement???we should visit www.apgportfolio.com...that was still private listing,but i heart this 20th august they go IPO...

Very interesting..

That would mean STAREIT's dividend yield is actually much higher than others if only a small portion is subjected to withholding tax?

Final Income Distribution of 3.1990 sen per unit (of which 0.1902 sen is taxable and 3.0088 sen is non-taxable in the hands of unitholders) in respect of the financial year ended 30 June 2011

Currently Stareit doesn't generate much income, as regularisation/acquisition only completed on 3Q.

Those distribution is tax exempted can be mixture of be come from capital allowance, or capital gain realised distribution.

Any real earning/income if without any capital allowance, is subjected to 10% witholding tax.

3.199 is not its real earning/income for the Q.

You are right.

Hello,

Does anyone know if arreit is declaring any dividends for period ending June 11?

Thanks

Shhh....It's coming...

Hi, I am very new to investment. May I know which website can provide info on how much the dividend of each reit give out the recent years and what are the real estate they holding? Thanks for the info

If U are on HLeB's stock's portal, see the attached image.

arreit declared dividend juts now....seems a bit lower than last year.

Profit also less. Anyone here know why?

many tenant left them

Where can I find dividend history for each REIT?

quoted here

The Trust’s total revenue for the current quarter ended 30 June 2011 dropped from RM16,824,586 to RM16,583,574, as compared to the same preceding quarter. Earnings before taxation also decreased from RM12,066,286 to RM10,903,339. The slight drop in total revenue was mainly due to an income of RM2,017,160 received as compensation from the compulsory acquisition of part of land of SEGi College, Subang Jaya by the Government during the preceding corresponding quarter.

The Trust's expenses incurred for the current quarter was higher by 19% as compared to the same preceding quarter, due to the higher term loan interest expense from the additional borrowing as well as the increase in the rate of manager's fee and trustee's fee from 0.30% to 0.60% and 0.04% to 0.05% respectively.

in short, their reason was last year's revenue was boosted by one off gain and costs have risen due to increase in manager's fee.

on the other hand the valuation for their properties have risen (at least). rental revisions could be due.

still okay, not that bad. in fact revenue increase.