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PETALING JAYA: Standard & Poor's (S&P) has withdrawn all ratings for AmanahRaya Real Estate Investment Trust (AR-REIT) at the company's request after the rating agency gave it a “negative” outlook.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

AMFirst has proposed a rights issue, so you'll have to prepare additional funds for it to maintain the value of your stake when it comes around.

http://www.bursamalaysia.com/website/bm/li.../historical.jsp

Based on my understanding la.... the share(unit)holders can opt to: (correct me if i m wrong  )

Option 1
Take cash of 4.30 sen per unit (in which 4.20 sen is subject to w/h tax, and 0.10 sen is not taxable)

i.e. for resident individual, he will get 3.88 sen nett per unit...


Option 2

Choose to reinvest 2.10 sen (in which 2.00 sen is subject to w/h tax, and 0.10 sen is not taxable)
and
take the remaining of 2.20 sen (taxable) in the form of cash

i.e. for resident individual,
a) nett reinvestment amount is 1.90 sen nett per unit
b) nett cash received is 1.98 sen nett per unit 


Option 3

Choose to reinvest 1.00 sen (taxable)
and
take the remaining of 3.30 sen (in which 3.20 sen is subject to w/h tax, and 0.10 sen is not taxable) in the form of cash

i.e. for resident individual,
a) nett reinvestment amount is 0.90 sen nett per unit
b) nett cash received is 2.98 sen nett per unit 
either option 2 or option 3, the unitholder will have odd lot after the reinvestment...

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Added on October 18, 2011, 8:05 pm
yalor...its income drop abit.... haiz

anyway, i think it's still a good counter as the main tenant is a bank...haha.. payment guarantee 

seems like not much discussion in this counter de?

LIKE   this article.
So far the only Malaysain reit I know with right issue proposed is AMFirst.

Hi everyone, long-time lurker and small-fish REIT investor here (dun kill the newbie!). Decided to post a link to some comments since I've seen that article brought up more than once ^^

http://www.investinpassiveincome.com/comme...it-myth-busted/

i think personal money portfolio already sold their ARREIT holdings...something fishy...

river.sand,

The system will match the lowest sell queue first. It will not just spike because people key in wrong price.

The Board of Directors of SBGB wishes to announce that the Company, being the Lessee has defaulted in its rental payment on the lease of a Warehouse Complex erected on an industrial land held under HS(D) 232293, PT 93 Pekan Baru Hicom, Daerah Petaling, Negeri Selangor but excluding all plant and machineries for manufacturing purposes and the museum facilities installed thereon ("Demised Property") for the months of January 2012 to May 2012.

In relation thereto, CIMB Islamic Trustee Berhad (formerly known as CIMB Trustee Berhad) (“the Lessor”) has thereto called on the entire guaranteed sum under the Bank Guarantee issued by RHB Bank Berhad for the sum of Ringgit Malaysia Seven Million Two Hundred and Ninety-Six Thousand only (RM7,296,000.00), which shall be applied towards payment of the following:-

i. Outstanding rental due and owing by the Company for the period from January 2012 up to May 2012 (“Outstanding Rental”); and

ii. The remaining sum (after the deduction of the Outstanding Rental) shall be treated as advance rental until January 2013.

The calling of the above Bank Guarantee has been announced as a cross default in the Company’s announcement on 6 April 2012.

The Company is presently in communication with the Lessor on the revised terms of the Lease Agreement, which shall be incorporated into the proposed regularisation plan of the Company.

This announcement is dated 12 June 2012.

You forgot we bought around the same time? 

Eh, what's up with AXREIT? Looks like it's crazily overpriced. I'm tempted to sell now.

Yeap me too! Beauty of e-dividend.