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 REIT V3, Real Estate Investment Trust

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mopster
post Aug 24 2011, 12:01 AM

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QUOTE(teehk_tee @ Aug 23 2011, 11:23 PM)
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. mad.gif

on the other hand the valuation for their properties have risen (at least). rental revisions could be due.
*
LOL... the Manager's Fee increased 100% from 0.3% to 0.6% rclxub.gif
mopster
post Sep 19 2011, 01:52 PM

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QUOTE
We believe the REITs will be one of the sectors that will be touched on in the upcoming Budget 2012, which will be tabled on 7th Oct. The concession for the current withholding tax regime is expiring in end 2011. Currently the Malaysian REIT Managers Association (MRMA) is engaging with the MOF to extend the existing tax structure for a further five years. Meanwhile, MRMA is also lobbying for the removal of the 10 per cent withholding tax from individuals.

Is there any chance that Najeeb will tax reit 25% instead of withholding 10% when the tax regime expires ?? sad.gif
On the other hand the removal of 10% withholding will surely send reits jumping..
mopster
post Sep 19 2011, 02:30 PM

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QUOTE(cherroy @ Sep 19 2011, 02:13 PM)
If it did (25%), I am sure reit industry will be 'hibernating".
Little people interested to set up new reit, nor list new reit.

Personally I don't see it will be, aka tax reit at 25%.

Totally removing, I rated chance like 5-10%, not very likely.

High possible I can guess is, it stays at the same.

Added on September 19, 2011, 2:16 pmCurrently, there are plenty of properties stock/company that holding properties for renting one aka similar to reit.
If tax at 25%, same with corporate tax.
Why is the purpose setting reit?
None.

While, it is better let the properties under ordinary property company, as you have all the flexibility in term of managing the properties, as well as access to the cashflow.
*
yah i hope things remain status quo.. dun touch it if it's not broken! laugh.gif

Good point there biggrin.gif
if REIT is being taxed normal corporate tax then it is no different from any other listed company.. all of them will look like Krisasset tongue.gif

QUOTE(Wikipedia)
A real estate investment trust or REIT is a tax designation for a corporate entity investing in real estate. The purpose of this designation is to reduce or eliminate corporate income taxes. In return, REITs are required to distribute 90% of their taxable income into the hands of investors. The REIT structure was designed to provide a real estate investment structure similar to the investment structure mutual funds provide in stocks.[1]
mopster
post Oct 8 2011, 06:08 AM

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QUOTE(ryan18 @ Oct 7 2011, 04:38 PM)
10% REIT tax maintained for another 5years.woohoo more money into my pocket
*
yup... smile.gif no worries until 2016 now... cheers.gif to all REIT holders..

QUOTE
Meanwhile, the government also proposed that to extend the concessionary tax rate of 10 per cent on dividends of non-corporate institutional and individual investors in Real Estate Investment Trust (REITs) to December 31 2016.

Read more: Budget 2012: MNCs to get tax exemption http://www.btimes.com.my/Current_News/BTIM...l#ixzz1a8VaNyp2
mopster
post Oct 12 2011, 01:15 AM

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QUOTE(panasonic88 @ Oct 11 2011, 09:18 PM)
Next Reits to be listed in KLSE is Pavillion Reits. Somewhere next month.

Pavilion is opened in 2007, claimed to be profitable, with 98% tenancy occupied, hmm. So does it mean the Reits source income is from the shops tenant rentals?

No info on the DPU yield nor IPO price yet. Is it worth buying?
*
rumoured to be 7%... in my buy list...
if 7% i will buy.. Datuk Desmond Lim, owner of Malton/Pavilion/Equine also bot the piece of land close to Pavilion, rumoured to be the extension.
Pavilion Sdn.Bhd also manages Fahrenheit88.. I'm not sure if Fahrenheit88 will be part of this IPO.

Meanwhile I'm waiting for OneU_Reit, MidValleyGardensReit, TheCurve_Reit if they ever come.. laugh.gif
Didnt strike Sunreit last time and missed it for good sad.gif

QUOTE(yok70 @ Oct 12 2011, 12:10 AM)
I'm still waiting for Midvalley REIT lah!  yawn.gif
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me too, but nvmd.. let them come 1 by 1 coz i need time to stock up bullets...

QUOTE(cherroy @ Oct 11 2011, 04:13 PM)
Received already, still in the form of snail mail cheque, not yet e-dividend.  doh.gif
*
haha, i miss the good-ol days where i collect many divvy cheques and bank in together.. laugh.gif
are the other Reits still using cheques as well ? i only have arreit tongue.gif

This post has been edited by mopster: Oct 12 2011, 01:17 AM
mopster
post Oct 24 2011, 07:34 PM

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hmm at IPO, Pavreit yield 6.5% is ok la..
after -10% withholding, it's about 5.8%

imo, buy only if u can hold long enough until they acquire more assets to increase yield...
~NAV 94c
~Half yearly income distribution
~Gearing is not too high.. Total Asset 3.6B, Liab 0.805B, Equity 2.827B (not sure abt future borrowings)
~3B issued shares, 35M for ikan bilis, 755M for institutions, remaining shares are held by Datuk Desmond Lim 845M, his wife 282M and Qatar Holdings 1083M
~2 core properties, Pavilion Mall and Pavilion Towers..
~Opportunities for growth: fahrenheit88, Pav extension, USJ Mall, future developments
~Options to add 620M units after listing (already granted by SC but requires shareholders' approval)

~Retail IPO starts 14th Nov, Close 21st Nov
~Inst. IPO starts 11th Nov, Close 23rd Nov
~Price Determinant Date: 23rd Nov
~Balloting Date: 24th Nov
~Allotment: 5th Dec
~Listing Date:7th Dec

plz correct any inaccurate info i put here..

This post has been edited by mopster: Oct 24 2011, 07:38 PM
mopster
post Nov 17 2011, 03:54 PM

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p r o b l e m o _ s o l v e d

This post has been edited by mopster: Nov 17 2011, 05:21 PM
mopster
post Nov 21 2011, 01:08 PM

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QUOTE(iamtheone2020 @ Nov 21 2011, 11:46 AM)
read somewhere that pavreit will use the IPO money to settle its debt..so any chance of increasing?
*
are u able to quote your source ? hmm.gif
prospectus says it will be part of the payment for acquisitions... if u consider that "payment" as debt, then yes...
mopster
post Nov 23 2011, 08:38 PM

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QUOTE(kilrathi @ Nov 23 2011, 07:03 PM)
hows things looking for PAVILLION reit ?
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QUOTE
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.
so on the average, each applicant booked 25,000 units whereas only 3300 units are available to each of them.
i think my chance of striking this IPO is "colder than water" sweat.gif
--
the 755M Institutional Portion is also oversubscribed blink.gif

This post has been edited by mopster: Nov 23 2011, 09:37 PM
mopster
post Nov 25 2011, 02:33 PM

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cry.gif me didnt get pavreit either sad.gif sad.gif
mopster
post Nov 28 2011, 09:21 PM

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QUOTE(Veda @ Nov 28 2011, 09:12 PM)
This article is more towards Singapore Reits and I'm not a big fan of Reits unless I can buy them cheap cheap but still worth reading....

Reit Myth Busted
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thanks for sharing this... good article.. notworthy.gif rclxms.gif

QUOTE
Instead of buying Reits for yields, some savvy investors only buy them when they see those with good quality assets trade at sharp discounts to their book value. For example in the first half of 2009, CMT was trading at 50 per cent its book value. Today, it is not as cheap. At $1.755, CMT is now trading at 13 per cent premium to its net asset value of $1.55.

Hence, valuation metrics which apply to a typical asset heavy stock would apply to Reits as well.

i agree with him, the last 2 para holds they key -> Eventhough they are all REITs, we should do our homework and not simply buy and think it's safe..
mopster
post May 15 2012, 11:06 PM

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My understanding of the story:

Kasset
~Kasset is disposing MVC (mid valley city) and MVCG (mid valley city garden) for a total consideration of RM4,612.6M.
~That amount will be satisfied via 3,400M Units of IGBReit and Cash of RM1216.2M.

~From the 3,400M units, 670M units will be offered through an IPO at a later date and 2,730M units will be distributed to Kasset shareholders.
~From the RM1,216.2M and 670M units proceeds will be used to settle all outstanding debt and the balance will be distributed back to Kasset shareholders via cap repayment or dividend.

~From the 670M IPO, 201M units to M'sian public and employees while the remaining 469M to institutional investors.

~By the completion bond redemption, cancellation of treasury shares and liabilities settlement, Kasset will have 520,997,000Shares.

2,730,000,000 / 520,997,000 = 5.24.
Each Kasset will give u 5.24 IGBReit.

Kasset will have a total cash of 1,212.559M + 670M (IPO) = 1,812.559M cash
From there, the distributable sum is 1,266.990M.

1,266,990,000 / 520,997,000 = RM2.43 per share.

Therefore:
Buying 1k of Kasset today would have cost you RM7,400.
You will get back RM2,430 cash + 5,240 IGBReit.

(RM7400-RM2430)/5,240=RM0.948 per unit of IGBReit
Theoretical IPO Price is RM1.00. so yeah, you do get some sort of discount.
Market is super efficient... notworthy.gif notworthy.gif that is why it never goes beyond RM7.60.. I still have so much to learn... notworthy.gif

Considering they are valuing MVC and MVCG at 4,600M, each IGBReit should be worth around (RM4,600M / 3,400 Units) = RM1.35

Estimated Rental Income per year for MVC and MVCG are RM210.6 and RM81.7. Total is RM292.3M
RM292.3M/3,400M = RM0.0859 a year.
assuming 90% distribution, that will be RM 0.0773 DPU a year.

Cost is 0.95. DPU 0.077, Yield is : 8.1%, and nett Yield after Witholding Tax is 7.29%...

~want or not ? good or not ? i dunno.. up to u ... haha but i will buy... SPSetia Eco city is under construction (just opposite MVC & MVCG) and MRT will stop there in the future too..
~The whole thing will take approximately 6months. So, if u buy... u'll have to wait for at least 6Months before u'll see any flowers and probably another 6Months to reap any fruits smile.gif
~BTW, Kasset will be delisted when the whole exercies ends.

IGBReit
~Issued Fund Size upon listing RM3,400M. Approved Size: RM3,550M. (means they have option for pvt placement)
~Half yearly income distribution
~Gearing on listing will be 26% (limit is 50%). (I'll compare to Pav and Sunway gearing and update later)

Updated: Gearing Comparison for MReits (Jan2012)
Al-Aqar: 48.2
Boustead: 17.6
Arreit: 36.0
AmFirst: 39.8
Atrium: 24.5
Axis: 38.2
CMMT: 32.7
Hektar: 43.4
Quill: 36.4
Stareit: 11.5
Sunway: 35.0
Tower: 20.6
UOA: 38.2
Pavreit: 20.1
~~~~~~~~
IGBReit: 26%

So, IGBReit will be top 5 lowest gearing.. Stareit -> Pav -> Tower -> Atrium..
Also to consider is the occupancy rate, which is excellent and i believe most of the shops are doing ok. Anyone with knowledge of this please share.. thanks..

Added on
plz correct me if i'm wrong...

This post has been edited by mopster: May 15 2012, 11:36 PM
mopster
post Jun 27 2012, 09:58 AM

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QUOTE(CP88 @ Jun 26 2012, 09:24 PM)
» Click to show Spoiler - click again to hide... «


Hmmm... Arreit capital gain of 40 million.. Hope can be distributed in the form of dividend to shareholders.  drool.gif
*
imo, it's better if they use the money to buy better properties and collect more rental icon_idea.gif

QUOTE(yok70 @ Jun 27 2012, 12:41 AM)
Thanks!  notworthy.gif

Based on Mopster master's calculation, at current price of around 8.00:
For every 1000 shares of Kassets,
we are getting 2430 cash + 5240 reit, so it's about 30% of cash.
(8000-2430)/5240 = 1.06 per unit of reit
dpu 0.077,  so at 1.06 gross yield is 7.26%.

Which means, for Kassets holders, they will have to leave 30% of their cash with 0% interest until end of March next year.
The good side is that 70% of their investment will be turn into IGBReit shares by Sept this year.

Wondering at what price the reit's IPO price would be. If it's lower than 1.06/unit, then we are sort of losing in a way to look at it.  laugh.gif

Please correct me if I were wrong.  biggrin.gif
*
lol, me no master la.. more like xiaodidi..
~they are targeting opening price of RM1.00 per unit..
~yah.. imo, it's not worth getting it if above RM7.60...
~with offer price of RM1 per unit, the valuation is stretched to the ceiling already... the PNAV is at 1, with the average of MREIT at 1.03.. Furthermore, the PBR is also higher at 1.39 compared to 1.20 retail reit average...
~as for why we're getting the shares later: i think upon the listing of IGB Reit, Kasset is still the shareholder of IGBR, while we're still the shareholder of Kasset.. (meaning status-quo).. we'll become the official shareholder when Kasset distributes the shares a few weeks later. As for the cap reduction and repayment, it's likely that we'll get back the money earlier.. march 2013 imo is like the worst case scenario with court delays, bla bla...
~Unfortunately, IGB will not inject other properties like hospitality and office into IGBR, they will put those into separate reits in the future...
mopster
post Jun 27 2012, 10:13 AM

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QUOTE(CP88 @ Jun 27 2012, 10:10 AM)
So more divvy for us  drool.gif Long term planning moppy gor.  notworthy.gif
Got the offer price for IGBReit already?  hmm.gif
*
"proposed" offer price only.. it's not 100% confirmed... but i would say 90%
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