Yes, you are correct.
Save the hassle to buy bankdraft and sending the form and waiting.

-TR currently worth Rm0.135, current mothershare price isRm1.39, so need to give little bit discount to the TR buyer.

Some reit net yield is only a notch higher than FD rate, just about 4-5%, to me, it doesn't seems justify to expose more risk while just getting 0.x~1.x% more than FD, which is way lower risk than reit.
While some reit price are trading more than 30-40% over its NAV.

Reit is never a FD, it is more a fixed income instrument.
Never treat it as FD, not right to start with.

Reit can go burst as well one, 2008 global crisis has lead to (overseas) reit need to fire-sale their asset to meet the debt obligation, also reit is subjected to market risk, economy and property market risk.

Because property sector is doing ok and lease/rental market generally is ok.

Previously we had AHP2, so if interested google the history of it.

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Added on September 10, 2012, 5:26 pmFyi,

At the heigh of global financial crisis 2007-2008.
Axreit was Rm1.00.
Stareit was Rm0.7x

Atrium once was Rm0.6x, when one of its property lease expired and not renew in time.

This post has been edited by cherroy: Sep 10 2012, 05:26 PM

It is not strange.

It is normal for reit to give dividend prior before private placement or right issue.
As those income is generated before new shares being issued. So previous shareholders should get those income as dividend.

It is unfair for newly shareholders (from the RI) get enjoy the previous income generated prior before they subscribe the RI.

As newly dividend payout will be diluted by new shares issued.

Your Kassets finally will turn into IGBreit, if your don't wish to sell.

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Added on September 24, 2012, 3:09 pmIf intend to keep IGBreit, then no reason to sell Kassets, unless
1. Don't want money locked in (as corporate exercise for capital repayment takes times, and only expected to be completed 2013 1Q)
2. Don't want to have more exposure on IGBreit, or in other word more IGBreit, as already have IGBreit, (As Kassets will distribute you IGBreit 5.24 for every 1 Kassets share)

This post has been edited by cherroy: Sep 24 2012, 03:09 PM

Reduce to 5% may be have a chance, totally remove it, I personally do not think so or unlikely. I might be wrong.
My prediction is witholding tax of 10% is status quo.

The budget can be the one looking to reduce speculation of property, cooling down the property market, (as household debt is already at high level), instead of incentive for property market to flourish further.

Yes, I also welcome no witholding tax which can make M-reit more competitive.

The proposal has clearly stated capital repayment + special dividend then delisted.

The election issue is overly exaggerated.

We do not know when is the election, how is the election outcome will be.

The one to determine whether want to invest or not, is about personal view on the pricing of the reit, aka whether it is worth or not to invest at current level.

We don't have crystal ball to predict whether the price will drop or not when election time, it is uncontrollable factor, the only controllable factor by one is whether to buy or not to buy at current level or now.
Never predict the market will fall or rise.
If view pricing is too high, just stay away, and wait.
If view pricing is ok, then justify by oneself whether to enter now or not.

Never think of tomorrow price will rise or drop, then use it to justify what to do now. It is not investing, but more like betting already.

Unless there are dividend stock that can give 5-6% sustainable and consistently, I do not see one need to sell reit (apart from need the cash issue), unless one is predicting property market crashing in the near term, which is different story a bit already.
(which I personally do not see it has high chance, a slow and correction phase of property market is likely the scenario).

Frankly speaking I do not see "undervalued" reit. Yield is pushing down lower and lower. While most reit are trading at premium to its NAV.
I only can see undervalued property stock around.

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Added on October 31, 2012, 3:02 pmYes, that's nothing to shout about of IGBreit, as net yield is 4.x% which is not that attractive.
But it is one of reit that do not to worry much about lease issue, while there is always good chance for rental revision to the upside, as the mall space is highly demanded and always fully occupied.

Other like office space, industrial, there is always risk of not able to get tenants especially if economy slowdown time, but retail reit is less affected as compared to office, industrial.

This post has been edited by cherroy: Oct 31 2012, 03:02 PM

Frankly speaking, personally I do not positive on construction stock.
As construction cost may easily rise if inflation is expecting to be still on the upside, which can cause cost over-run for project, although it is not the issue at the moment. But inflation is not expecting to be tamed down with massive QE around.

While gov development expenditure may cut further in the future in order to cut the budget deficit.

In order for gov to cut budget deficit, only has several way.
1. Increase income through taxes, like GST, which is not expecting soon.
2. Cut spending, operational expenditure like paying wages to civil servant, cannot be cut one, so left with development expenditure only.

If really positive about stock, economy or market, I would rather go for property stock instead of construction.
Just my 2 cents.

Another reason
1. Those having higher liquidity, so suit for big players, whereby price generally won't swing too big in either way, even with big volume.

That's why you see those reit having large volume, and low in yield, because many fund managers are eager to own it, as part of portfolio that can drive in fixed income for them.
This is particularly useful investment for insurance fund manager, whereby they need to look for fixed income investment for their insurance performance.

The newly acquired or the proposal to turn Stareit into hospitality reit is completed.
So the properties are starting to generate income to the reit as compared previously a period of time (a few months) already sold Starhill and Lot 10, while the newer properties injection was not yet materialised due to paperwork of the corporate exercise, so you have a period of time, the reit missing some revenue in between.

Cashflow cannot be faked.

If a company fake the cashflow figure, (in other word actual there is little cash in the bank), then the company is not able to give dividend to the shareholders already, as every cent given out (dividend) need cash.
Unless company give dividend through borrowing, which is easily suspected/detected in the financial report already.

The reason, I like reit distributing 90% of the profit made, is that it prevent the profit figure being cooked.
As if cooked the profit, means need to pay higher dividend to shareholders.
So if the profit figure is fake and jacked up, there is no way company has the cash to fund the dividend distribution, as those dividend need to be paid in cash.

A cash given out to shareholders cannot be faked.

Yup, if property market plunge, reit NAV may need to be revalued downwards.

As there is reit guideline that revaluation on property need to be done every 3 year (if not mistaken).

Revaluation surplus or not should not be a major consideration, but stable lease yield is the most important factor.

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Added on January 4, 2013, 2:55 pmThe first consideration is always yield.
No point buy a property, that hard to rent out one.

A property that not being rented out is a liability.

A property market value at Rm1 mil, you can buy below its NAV at 900k, but the property hard to find tenants, then it could mean 900k is stuck there, while cannot generate any return while need to pay for the expenses of the property.

This post has been edited by cherroy: Jan 4 2013, 02:55 PM

Unless it hit the threshold of 50% of its NAV, then based on the reit guideline, reit needs to trim down the borrowing to meet the 50% guideline.

How to trim down?
1. Right issue, private placement
2. Reduce the DPU to 90% instead of >90% or some at 95~100% currently. Unlikely below 90% as it triggers the tax exemption issue.
3. Sell property in the portfolio and the repay the borrowing.

If not hitting threshold of 50%, basically nothing is affected.

That's why once reit hit 40% and above, reits may plan trim down the borrowing, previously eg. Amfirst, Axreit.

During 2008 global crisis time, for overseas reit, there was case that reit needed to fire-sale property to repay borrowing due to credit market frozen time.
This is one of risk of reit, aka refinancing ability/cost.

That's why most reit borrowing sit around 30-40% so that still have room for maneuver.

Anyway, at the moment and near future, this kind risk is minimal at current cheap financing environment worldwide and low/zero interest situation.

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Added on January 4, 2013, 4:03 pmFor the near future, the more worry is about inflation issue, instead of property valuation plunging.

This post has been edited by cherroy: Jan 4 2013, 04:03 PM

Qcap has already made an announcement week ago, that financial result will be announced around 31 Jan.

With central banks around the world prefer to print money instead tackle hard on inflation, high interest rate is the least worry issue (at least for near future).
Sadly to say.

I am a bit worry, especially seeing people invested in IGBreit. (when announced 1.x cents, then say why so low etc, and also hoping price to shoot higher, investing in reit is not about see its price shoot higher, and with net yield less than 5%, how can the reit shoot higher?

Still see many do not have the right mindset in investing in reit.
No offence.

I just remembered last time (few years back), when I first talked about reit, many did not interested. Now like got reit "wind" across.

I still like Qcap, still have 6.x% yield, can I consider it as partial retail mall reit due to Tesco Penang?

This post has been edited by cherroy: Feb 1 2013, 02:06 PM