QUOTE(prophetjul @ Nov 6 2012, 10:26 AM)
Hi
its really about positive or negative Income growth. REITs are about that.
This REIT is presently all about MV, not much else.
30% expiry is pretty high. You wont get postive rent growth in all of that. If its too high, they will move.
Not all are high end. In fact as you mentioned MV is about middle income.
So the question is will there be growth in their income to justify the stock price?
At Rm1.25, the div yield is only around 5%........
So question is how will they increase their income so that DPU can increase as well?
I agree IGBreits offer only 5% compare other Reits.
I choose IGBreits compare other mall as below:
1) Location & Portfolio reits
Becoz i residing KL now. Every month i bring wife go MV & GM window shoping.
Compare other mall at penang and kuantan, i cant see the crowd.
Queenmall in penang is good but im not at penang to see the business there.
As investor i dont relies at broker report ; i prefer to see/monitor the business more secure.
2) Corporate/Office strategic working place
Some corporate also there beside targetting the houswife- working class spending the meal and shopping there after work.
I dont see why it cant capture audience inside. I hv friend working at Mid Valley; can be my spy of the ppl and traffic.
I worry less of Midvalley footfall( Prev I work at Bangsar - collegue and I having lunch there especially Friday).
Occasion i have collegue farewell and family gathering at there.
3) Competition fairness & Long term
Hektar dividend better than IGB reits. One of the mall is Center Point (Sungai Petani) from my hometown- yes i agress the mall can give higher dividend- but the mall is too old can be easy replace by other new mall as they is plenty land can develop
compare KL area.
5) Jam with traffic - if no tenant also the parking fee also can generate income to the Reits. The parking fee not high and no low low parking fee can be steam as income with the parking space there. IGBreit dividend can paid the parking fee what i given.
I have other Reits that i hold and dipose based my 2 cent thinking.
This post has been edited by felixmask: Nov 6 2012, 06:22 PM