I'm amused that my reits have actually gone up a little bit the past few days while the rest of the market has been tumbling. I was actually hoping to snag some bargains. Anyone has any ideas on how reits will do over the next few months, especially given the battering the property companies have been taking?

I disagree. People should put a higher proportion in higher risk investments when they are young and then progressively move into lower risk ones as they get near to retirement.

For me it's because of convenience and risk. I don't know if you've ever handled tenants or not, but it's a lot of work. You need to interview tenants, sign contracts, make sure they pay on time, make sure that they don't thrash your place, check to see that they pay their utilities bills and so on. If you get a bad tenant, you end up with a lot of trouble. Tenants can run away without paying rent, can damage your place. Non-paying tenants can be hard to evict etc.

As for risk, most people won't be able to afford more than a couple of properties to rent out. If you're having a hard time getting a tenant for a place for a few months, the hit you take on your returns is really bad. REIT companies will tend to have a broader range of properties, and so will always have at least some income even if some tenants leave.

Is there anything special that I have to do if I want to keep all the dividend in cash for Axreit?

Can anyone give some insight into why so many property owners are converting them into REITs, effectively selling shares in them to other investors? I know that they standard reply is that they believe that they can generate better returns using the capital this frees up. But really, is it that much better, given that REITs already give quite decent returns? Is there any additional risk to so many new REITs hitting the market and so much more cash infusion into the sector?

Just wondering if there are any potential downsides here since REITs already consist of a rather significant proportion of my portfolio.

UOA reit dropped significantly today. What's up with that?

Heh, queue for CMMT starts at 1.360. Too bad for those hoping to pick it up at 1.330.

Risks: non-renewal of tenancy agreements, non-payment of rents agreed upon when tenants get into financial trouble (this has happened before for Malaysian REITs), physical damage to property that might not be fully covered by insurance, deterioration of quality to property due to poor management, sweetheart deals resulting in lower rental rates than the market rate between the REIT and related companies, etc. Non-receipt of rental income is particularly dangerous for REITs which have significant loans to service.

Probably the most important things to know about REITs are therefore:
1) How indebted they are, though I understand that local laws limit that their debt to 50% of their assets.
2) Their property portfolio and whether or not you think the businesses occupying them are doing well.

Not sure how much accounting knowledge you have but:
1) It's unrealized because the assets in question aren't sold. Think of it as something like paper profit. It should be in both the income statement and the balance sheet. Except that it's a separate line item in the income statement to reflect the one-off addition of the assets' value due to revaluation while the new total value should appear under assets in the balance sheet.

You do know that Starhill REIT's dividends are artificially boosted on that chart due to a one-off gain from disposal of assets right? Based on predicted dividends, I think its true dividend yield is about 6% to 6.5%.

I can't find solid information so I may be wrong. But Stareit's financial reports always confuse me because right now most of their asset value is actually in their Singapore REIT related company.

Anyway, cherroy mentioned a while back that Stareit's expected DPU after all their property portfolio adjustments is 6.9 sen. I see that the MREIT blog simply based their extremely high yield by taking 4.0112 DPU for a half year and doubling it.

I'm using CIMB iTrade and I've already received the Amfirst dividend.

It appears on my statement with the transaction date 04/06/2012.

I'm using CIMB iTrade.

Ex-date on 4th, last date of lodgement on 6th, for ARREIT's dividend.

The KASSETS announcement is to shareholders only? I don't see anything on the Bursa site. The only news dated 11/05/2012 is:

Announcement Details/Table Section :

We refer to the announcements dated 11 May 2012 and 14 May 2012 in respect of the Proposals. The abbreviations used in this announcement are consistent with the announcement dated 11 May 2012.

On behalf of the Board of Directors of KrisAssets, CIMB Investment Bank Berhad and Hong Leong Investment Bank Berhad are pleased to announce that the Securities Commission had in its letter dated 8 June 2012 approved the application in respect of the Proposed Distribution-In-Specie.

This announcement is dated 11 June 2012.

I notice that the buy and sell queues for AMFIRST are extremely huge. What's up?

My CMMT. Bought about three months ago I think. I'm also wondering if I should sell for quick gain or keep for dividends and potentially more capital gains.

On the other hand, my BJTOTO bought at about the same time:



I should have stuck to the REITs!

This post has been edited by wankongyew: Jun 14 2012, 06:18 PM

Hmm, going to issue an extra 20% units for this, diluting existing shareholders. But I suppose AXREIT is already the king of the local REITs and the market should trust their management.

Loans, usually expressed as a percentage of assets. For example, a company with assets worth 1 billion isn't worth shit if it owes 1.1 billion, gearing of 110%.

This post has been edited by wankongyew: Jun 15 2012, 09:55 AM