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.

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.

Already on board, entered twice already. First time at 1.07, Second time at 1.13. Waiting for my first REIT dividends, am very excited..heee

I just came back from Midvalley City, shopping in Mid Valley and as well as The Garden. It is so crowded over there, always got people queue up for parking. Well, don't forget to put MVREIT into your REIT list if you are a REIT lover.

Not yet listed, coming soon, stay tune for their IPO!

Why REIT?
1. I think you get the misconception of that rental income is exempted from tax. This is not the truth as many people do not know that rental income actually is subjected to tax, on whether you assess it under S 4a Business Income or S 4d Investment Income. If you assess under Business Income, then your tax rate will be at the personal tax bracket rate dependent on your amount of total chargeable income. If you setup a company with less than 2.5m authorized capital and on the first 500k chargeable income for that year assessment, the rental will be taxable at 20% or else at 25 % corporate rate. REIT only tax you at 10 %, which is an incentive by government to spur up REIT company

2. Any capital gain when you sell off your REIT stocks at any time is not subject to any tax due to the nature of the tax law " Capital gain in stock is not subject to tax". This is different from property, as any property gains are subject to RPGT (Real Property Gain Tax) if it is disposed in less than 5 years.

3. Hassles in finding tenant, collecting rent and etc if you want to rent it out. It is more difficult if you want to unlock your fund in property as you need to find buyers and after a long time sign S & P only after the buyer able to get the released loan from the bank. As for REIT? Any time, as long as got willing buyer, 3 days later, money will be credited to your broker trust account and you can cash or cheque out any time.

10-12% p.a return

Did you include the property value appreciation as well? Else, for you to get a 10 - 12% p.a return base solely on rental income is near impossible with current property price, unless you tell me that you were using the old property price which dated years back in calculating your yield. For some REITS, you can easily get 6 % to 9% base on some REITS current price out there.

You make a final call on which is a better option for you to invest, REIT or Real Property Rental Income. cheers

This post has been edited by andrewckj: Oct 11 2011, 01:11 PM

I agreed. SUNREIT is for longer term play. Sunway Pyramid 3 will be up by 2013. I'm looking into TWRREIT. Need to analyze deeper into the financial and fundamental analysis though. That will be my homework over the weekend.

Btw, one can consider CMMT too for a longer term play. Though the yield not so attractive, but their portfolio assets are pretty interesting and there will be more to come. Gurney Paragon will be coming up too if I'm not wrong and I believe CMMT will be the favourite to own it, just my speculation. Cheers.

This post has been edited by andrewckj: Oct 14 2011, 12:02 AM

TWRREIT if they can maintain it, but there is little stocks in the market.

I just manage to bait some of it at 1.22 and 1.23..that's it. Office play, HLA is the biggest shareholder with balance float of 22 % remaining, after taking into the account of the 100 largest shareholders.

Dengan sukacitanya, MIDF telah memulangkan wang untuk permohonan PAVREIT di dalam Maybank akaun saya. Oleh itu, juga dukacitanya permohonan IPO bagi PAVREIT saya telah gagal walaupun saya memohon 5,000 unit sahaja..