Panamy darn expensive to masuk

I'm considering ARReit, since it fall the 0.85, which I think is a very good entry price, lets see if it falls further in the coming few days/week.

if sampai 0.80, i'll masuk kao kao..

sorry r u suggesting/speculate or telling us its properties no body rent? if have anything like links or news to share appreciated   

I have just read the prospectus... not too bad lar. Let me summarize it for you guys here...based on RM 0.90 institutional price

1. Expected DY = 6.5% based on 100% payout
2. Gearing Ratio = 20.1% (debt/asset), ~28% (debt/equity)
3. Gross Rental Yield =10.3%
4. Net Rental Yield = 6.3%
5. Rental Revision CAGR = ~2-3% per year
6. Loan : Average 4% interest rate based on KLIBOR + 0.8%-1.2% revolving loan (means can change anytime)
7. Occupancy : Mall : 97.7%, Office : 41.4%
8. First Refusal right - Fahrenheit88 Mall, Pavillion Extension & USJ Mall(mana ini?  )

Red Flags
- Performance Fee of 5% (this has not been practiced by other REIT) to be implemented >2013
- 5.5% of tenancy expiring in 2011 with average rental of 19.92 psf & 65% of tenancy expiring in 2013 with average rental of 18.12 psf. These will follow the reduced new rate of ~16.90-17.00, so will have -5%-7% impact on total rental income.
- Office building is currently only 41.4% rented out, and at 5.77 psf. In 2013 66% of tenancy with average of 5.97 will be revised to about 5.77-5.80, expected to have slight impact on incomes.
Comment/Verdict
Reasonable dividend yield, very good gearing ratio still have room to grow. Have good future growth in new acquisition. Starting 2013 if performance fee kicks in and rental revision is downwards would have 5%-10% impact on dividend yield unless the manager is proactive at raising rate and/or delay the performance fee. The manager opt to have performance fee in units, so it is a good sign, they are inline with the shareholders.

Based on the above and also relative to peers (CMMT, SUNREIT) this reit has a potential to gain 15%-20% after IPO.

Now we know why Quatar Investment want to sell pavillion mall, because the rental rate is actually starting to reduce slowly after 2009 and will impact in 2013.   

Any comments? 

I saw Silverbird is one of the long term tenant. Their going PN17 got impact to ARREIT ?