how come stareit still dont want to announce quarter report.

how come stareit still dont want to announce quarter report.

All listed company including reit has 2 month time to announce their result.

So if Q result ended 30 June, has until 31 Aug to announce.

All listed company including reit has 2 month time to announce their result.

So if Q result ended 30 June, has until 31 Aug to announce.

M-REIT yields back to attractive levels

by Ronnie Teo, ronnieteo@theborneopost.com. Posted on August 14, 2013, Wednesday

KUCHING: Malaysian Real Estate Investment Trusts (M-REITs) is currently seeing yields returning back to attractive levels on the back of the Malaysian 10-year government bond yields spiking to 3.9 per cent in the last two months.

Govenrment bond yields went up from a multi-year low of 3.1 per cent in mid-May, on expectations the US Federal Reserve would taper its quantitative easing programme (which would see interest rates rise on lower liquidity), as well as the recent rating downgrade of Malaysia’s outlook to negative by Fitch.

“Rising government bond yield and expectations of a hike in the overnight policy rate (OPR) have resulted in M-REIT unit prices sliding less than 10 per cent in the past two months, leading to 20 to 30 basis points (bps) higher distribution yields to 6.1 per cent currently,” highlighted HwangDBS Vickers Research Sdn Bhd (HwangDBS Research) analysts Chin Jin Han and Yee Mei Hui in an outlook on the sector.

“Comparatively, year-to-date returns on M-REITs within our coverage (excluding KLCC Stapled Security) fell three per cent versus a six per cent appreciation in the FBM KLCI Index.

“Currently, the average REIT yield spread between the 10-year government bonds and larger market cap REITs is at about 170bps compared to circa 150bps before the selldown in mid-June 2013, and returning to levels before government bonds began dipping in April 2013.”

Both Chin and Yee believed that refinancing was not a major concern as the majority of REITs under HwangDBS Research’s coverage have more than 70 per cent in fixed rate debt which will not require refinancing for another two to three years.

“On this note, we do not expect rising bond yields and interest rate hikes to affect the MREITs’ interest costs for that period.

“Currently, the average cost of debt for these REITs range from 3.8 per cent to 4.6 per cent,” they said.

“However, there could be REITs that are more exposed than others, namely Axis REIT with 59 per cent of debt due for refinancing within a year.

“KLCC Stapled Security would have the greatest near-term refinancing risk, with RM1 billion in debt maturing in one or two years.

“Nevertheless, we think this should be mitigated by resilient earnings growth and strong asset performance track record, which could translate to favourable financing terms.”

Touching on the point of the OPR, Chin and Yee were of the opinion that higher OPR or interest rates may increase finance costs by one to five per cent per annum.

This led to the analysts highlighting a bigger issue which was the cost of financing future acquisitions and major enhancements.

“We conducted stress tests on our existing acquisition assumptions, particularly for big ticket items such as Pavilion KL extension, Sunway and Monash University campuses, Putra Mall refurbishments, Queensbay Mall injections, and Suria KLCC acquisition.

“Based on this, a 30bps rate hike would increase finance costs by one to three per cent, and a 50bps hike would see two to five per cent higher interest expenses per annum.”

All in all, Chin and Yee believed that the rebounding yields, potential acquisitions and the overall cautious economic outlook made it a good time to accumulate.

“We trimmed price targets for REITs under our coverage by three to five per cent after adjusting up risk-free rate by 50bps,” they added.

“Current finance costs will not be affected by a hike in interest rates potentially triggered by higher OPR, but we have imputed 30bps higher interest costs on debt funding for future acquisitions and major asset enhancements.”


Read more: http://www.theborneopost.com/2013/08/14/m-.../#ixzz2c3FuNYe2

All listed company including reit has 2 month time to announce their result.

So if Q result ended 30 June, has until 31 Aug to announce.

is US tapering of QE3 good or bad for REITs?

BAD for reits
1) US will reduce massive US Bill buying, therefore require Investor to pruchase their Bill, to do so they will increase the rate.
    the rate between US bill vs US reits juz different of 100bps, investor mostly move their for lower risk

2) To avoid massive outflow of hot money, those FF invested in Mreits will either move to MGS or move back their own country.
    REIT money are for yield, then the yield vs US bill or MGS not much different and lower risk, the smart money will move to avoid KABOOM.

My 2 sen, see above my statement correct.  thanks sifu....let me know if im wrong.

Would like to check how significant is this movement of foreign funds affecting MYR - USD rate? The Ringgit has weakened very severely in the past few weeks.

  SIFU any can help to answer.

Would like to check how significant is this movement of foreign funds affecting MYR - USD rate? The Ringgit has weakened very severely in the past few weeks.

Billions of USD that has been invested in emerging market are coming home, so they sell emerging convert to USD and buy US equities. This will last for sometime. As long as US bond yields are increasing and US stock market continue to up, this appreciation of USD will continue to go up.

Previously 3-4 years it was the opposite, so USD weakens. So this is merely correcting the imbalance.

It does have an effect.

In fact, foreign funds are pulling out from Asia region (ex-Japan), (previously pour in due to QE), which resulting USD rising across for the past month.

KLCC highest volume today @ 4.10pm amongst REIT
Current price RM6.35 is d lowest fr 20/5-15/8
Dunno wat happen.....

BAD for reits
1) US will reduce massive US Bill buying, therefore require Investor to pruchase their Bill, to do so they will increase the rate.
    the rate between US bill vs US reits juz different of 100bps, investor mostly move their for lower risk

2) To avoid massive outflow of hot money, those FF invested in Mreits will either move to MGS or move back their own country.
    REIT money are for yield, then the yield vs US bill or MGS not much different and lower risk, the smart money will move to avoid KABOOM.

My 2 sen, see above my statement correct.  thanks sifu....let me know if im wrong.

looks like QE tapering is not avoidable, just a matter of time, so why are we still holding Mreits?

looks like QE tapering is not avoidable, just a matter of time, so why are we still holding Mreits?