I didn't keep track on NAV, although I understand many people do for REIT since that's suppose to be the assets value. But I only look at the yield, since from yield we can see what current NAV unable to tell us: the future valuation, which is stock trading all about. From what I read, Alaqar should be giving gross distribution of 8 sen for FY13. So that would be around 6% at 1.33.

This post has been edited by yok70: Dec 2 2012, 06:23 AM

Five months after formalising its acquisition of three Marriott hotels in Australia, and with the Dec 8 official re-opening of Majestic Hotel well under way, the YTL group is now focusing on its new hotel assets in Bath, the United Kingdom. YTL Corp Bhd ED Datuk Mark Yeoh Seok Kah said although its investment in the Bath real estate was small, there was much competencies to be had from it.
Yeoh, who is also the executive director of YTL Hotels & Properties Sdn Bhd, said the hotel arm took over the Bath project about eight months ago, reportedly for £18,000 (RM87,588). YTL Hotels acquired the entire stake in Bath Hotel and Spa, which makes it a wholly-owned subsidiary of YTL Hotels and an indirect subsidiary of the group. Yeoh said the Royal Bank of Scotland (RBS) is providing two-thirds, or £20m, of the £30m investment to support the group's acquisition, and redevelopment, of the 99-room hotel project located in the heart of the historic spa city square. (Starbiz)


Good good, more potential injection for Stareit.

I think local hotels under Stareit pay fixed rental fees. Only the newly acquired Australia's Marriots pay depending on revenue.
However, after few years when revising the rental (for local hotels), that I'm not sure how it would be.

A listing for Iskandar Waterfront Holdings (IWH) and a REIT for all the commercial buildings under IWH development are on the cards sometime next year, said vice chairman Tan Sri Lim Kang Hoo. "We have not appointed the investment bankers but definitely looking at it and targeting next year since we just completed a merger this year." (Star Biz)

got, quite heavy even. It's so cheap. yield 8-11% for FY13-14.

Now, the situation is this. People are willing to buy a high quality fixed income instrument that only pays 4.5-5% yield p.a. As long as the yield is there, they are willing to ignore the NAV. Maybe because they think current properties price in the asset they own still has potential to growth in near future.

So what's your thought about a reasonable valuation on REITs? Please share your thoughts.

The only bullet proof thing is....(drumming....)....bullet. Because it has been proved to be a bullet before being called a bullet.

I guess no answer for you because nobody understand what is your question. That includes myself.

NAV matters when you want to sell the property.
Say if the property worth 1m, and you bought at 1.1m.
You sell it, market only want to buy from you for 1m. So you loss 0.1m if sell it today.

NAV doesn't matter if you just want the rental.
Say the property provides you a rental income of 5% every year at your buying price. No matter what the market price is for the property, as long as you don't sell it, you have no loss.

If other REIT comes out from an already listed company, be prepare to see its share price depresses for few months time just like IGBREIT.

No it won't. Because the new KLCCP only has 1 stock that combines the reit portion + the parent company portion.
2 in 1.

I mean for example Kassets shareholders who were given IGBReit shares have been selling IGBReit shares because they are not interested to hold REIT for long term.

If you are talking about outside Bursa, then ya.
But in Bursa, I thought all stocks dividend tax at 25%? Those tax exempt just mean already taxed before declaring? Please correct me if I am wrong.
However, if your salary income less than the minimum range (is it 24k/year?), then you can claim back this 25%.

Starhill REIT profit down 67% this quarter?
Why? Is it because of the Australia hotels acquisition? Administration Cost increases tremendously.

I see.
I'm expecting a half year distribution of 4.5-5sen when receiving fully contribution from the 3 Australia hotels. The deal was completed when? Was it in December? If so, then can only see that earnings next quarter.

single-tier dividend means the number inclusive of tax. (meaning, already tax 25%! cannot even claim back)
as for REIT, it's only 10%, less than ordinary stock's 25%.
Please correct me if I am wrong.

Thanks for the info.
Read that the completion of acquisition of the Marriott Hotels in Australia was on 29 Nov 2012. Meaning the income from there only just started. So may expect much higher income next quarter.
At current price and DPU, yield just at 6%. Estimate the Australia Hotels contribute 3%, we'll get 9% later.


This post has been edited by yok70: Jan 18 2013, 10:17 AM

how cheap is your cheap? that's the question.
as some people keep complaining yield of 5% is too low for reit.
if want yield of 8%, then need 40% drop only can call cheap.

But most people like premium malls/assets, so they also accept premium yield (of around 4.5% vs this 2nd class malls with 6.47%)

today received 4.
axreit, stareit, pavreit, igbreit.
yesterday 1, sunreit.
quite full stomach.