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PETALING JAYA: Standard & Poor's (S&P) has withdrawn all ratings for AmanahRaya Real Estate Investment Trust (AR-REIT) at the company's request after the rating agency gave it a “negative” outlook.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

Once the 2nd dip happen.. Is time to go for some REITs to tie a good knot from them on dividend already

Waiting and waiting

Yea.. low.
I mean when it had dipped, then can consider. No dip, no buy

yok70, u still hold ur hunzpty? 

what is the diffrent btw mreit and islamic reit?

lol
so islamic reit only islam ppl can buy?

midvalley got REIT soon? 

mind to tell me which one is midvalley counter? lol..

never know that midvalley counter is exist.. 

Axreit 4.3 cents DPU for latest Q.

You are blur now.
Total
4.3 cents given, 1.1 + 2.1 = 3.3, 1 cent missing... you are so generous giving it away?  

Out of 4.3 cents, 2.1 cents can be used for reinvestment aka Electable portion (which you can choose), the other 2.2 cents must be paid in cash (non-electable part).

Out of the 2.1 cents Electable portion, the board decided 1 cent can be used for reinvestment.

So it is 3.3 cents cash, 1 cent reinvestment.

The statement is quite confusing somehow that I have to agree.

---

Added on October 18, 2011, 5:52 pmthe reinvestment price is Rm2.30.

I will not choose reinvestment, reason:

1. I invested in reit is for fixed income instrument, whereby it generate cashflow to me. Whether I use the dividend money to buy Axreit or others, I have freedom to make the decision at whenever time later on.

2. I don't like to have odd lot or lot size that difficult to remember, instead of 100, 200, 250 lot.

Above just my personal preference.

But reinvestment can mean you get some discount out of the unit you owned, while you can sell at market price and make little profit out of it.
So it is up to individual choice.

Don't get me wrong, I am not saying which is better to the others.

They should have announce this when AXREIT was hovering at 2.30-2.35 last month. I would have top up 

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...

based on my understanding on the announcement la....

i think u can only choose to reinvest either :

a) full reinvestment, i.e. 2.10sen per unit (gross) or,
b) partial reinvestment, i.e. 1.00sen per unit (gross)

no other amount d... because the "or part of the Electable Portion based on the proportion as determined by the Board"
if u have 20k units, u can:

a) reinvest RM380 @ RM2.30/unit = 165 units
b) reinvest RM180 @ RM2.30/unit = 78 units

Maybank call for Axreit:-

Thanks.

What do I need to monitor once I bought the REIT? I mean, read analyst report on REIT, read Star Business ? I intend to hold REIT for at least 3-5 years term ?

How to watch out for REIT counter bad news? will they ever be reported in newspaper ?

if it does test it's 52 weeks low, it's time for me to buy some ...... for long terms divvy 

The one over-leveraged one is individual owned properties. 
Consider a person earn 3-4k month with little saving/asset, but can get a loan of 200k.
Don't know how many 100-200% leverage...

I more care about how they are financing, how the debt level is and vs their properties portfolio.
If they are using little borrowing to buy poor quality asset, this is not good as well.
While if they highly leverage but owning prime location properties, then it is better than above mentioned.

If refinancing freeze, properties sector crash, cannot get tenant, both crashed together, but the one with prime property has better chance of survive.

Arreits apparently made some mistakes to purchase some very low yield properties just not too long ago, now intends to sell out.

Don'T u think it is rather a poor decision of their management ?

Or rather it is purely due to some unforeseen circumstances.