Ya... but less div due to less rental income. No rental income, where to find money to give to you?

Everything you invest also got risk. This is because risk is a measurement of potential gain. If you want low risk, then be prepared for low gain. Even putting your money in FD have some degree of risk, but it is so small, then it might as well be zero. FD have a bigger hidden risk which is inflation and currency devaluation, which eats into you buying power over time. This is called inflation adjusted rate of return.

However there are SOME investment products which has a high reward vs. risk ratio, but is mainly government skewed like ASB. Even ASB have risk as in year 2008 it DID fall by 20+%, but is made up by paying dividend from past gains. But this is managed product and not everyone is entitled.

Buying property is also not risk free as many people have found out in 1997, 2008 (not yet in MY) where property prices plunged. Although many people made a lot of money in property, the risk will catch up sooner or later, nothing goes up forever.

If you want to talk about REIT, yes REIT have undeniable risk, it could be devaluation of property, rental problems, interest rate goes up, cash flow problem etc etc. It happen in 2008 especially in Singapore. Not all REIT is the same, some are safer, some are riskier, hence there are different yield accorded to the market.

You cannot fully eliminate risk, but you can manage it, those who are actively invest knows about risk and how we can move them to our favor with higher reward vs risk, which is called sharpe ratio. Diversification is a very useful tool to reduce your overall risk, but over diversified is also not good. That being said, you be an idiot if chase risk blindly. Always consider risk before reward.

To be successful in investing you cannot fear risk, you have to embrace it, depending on your risk tolerance. For every dark cloud there is a silver lining. Fear is the not the enemy it is opportunity for you to buy things at discount. If you like to shop when the supermarket is having big discount, why do you run away when the stock market is having a mega sale?

REIT bought at the correct time can generate very handsome returns and the perceived risk if you look back, is not all that it turns out to be. For inspiration google for a blogger named AK71 blog, there you see some one who bought heavily into REIT when the people are dumping REIT with yield of 15%-20% in 2008, now he can practically retire.

Risk is your friend, it is what generate value. Running away and fearing risk is a sure fire way to have negative inflation adjusted rate of return. Remember to buy into risk only when it is in your favor.

This post has been edited by gark: Dec 31 2012, 12:06 PM

You don't merely look at DPU... Amfirst is mostly dead and the management is not interested to expand, it is mostly used for own benefit to get returns for their property. That is why DPU is so high, as market is not interested in the growth prospect. Compared to some like Axis, CMMT etc which is proactive in adding property to grow the DPU then it is a different story.

There are two things to be consider dividend yield and dividend growth. Both is important if you are looking for passive income.

Lets say REIT A cost RM 1 and pays Div of 5c/year, after 20 years total dividend received will be RM 1

On the other hand REIT B Cost RM 1 and pays div of 4c/year, BUT the dividend growth is expected to be 5% a year, after 20 years total dividend received will be RM 1.32

This post has been edited by gark: Jan 10 2013, 10:24 AM

CMMT, PAV REIT, IGB Reit = 1st tier Mall Reit
Hektar REIT = 2nd Tier Mall Reit
Sunway = 1/2 mall 1/2 hotel

Upcoming mall REIT = WCT REIT ...

If you know that people moving out, then why you buy. Less people rent = less income = lower DPU in the future

This post has been edited by gark: Jan 10 2013, 01:40 PM

Depends there are mall who 'tutup kedai' as well, lots of it if you look around. Easier to see is which mall you go to? Is the mall fully occupied? Selling higher class stuff or pirated DVD? Can you feel that the mall got potential? If you like to go there often, probably others will do as well?

If you been to Summit Mall - Belong to Amanah Raya REIT, you will even fear for your life, so many foreigners hanging around! Dark car park, broken toilets, shuttered stores...

Some time on the ground check is more useful than analyst report...

This post has been edited by gark: Jan 10 2013, 02:47 PM

Hmm my mistake then. Even worse now it belong to Amfirst REIT. Went there about 2 months ago with wife, the situation has not improved much. Quickly go buy DVD and then cabut!

The car park is still scary, adding a few florescent light here and there is not 'improvement' leh. Only basement and ground floor is occupied, other levels like ghost town. Toilet also ....terrible look more like drug den. Escalator not working, lift look like want to fall apart. Go at night and explore around and you will see....

Location​ Occupancy Rate​
The Summit Subang USJ​ Retail - 93.81%

This figure can believe one ar?

Also.. this one...



This post has been edited by gark: Jan 10 2013, 04:00 PM

Good for you. Don't go to upper floors though, many mat rempit on the top floor.

Also funny that the USJ Summit GM does not know there is a massage parlour inside the mall...?

= RM 16.11, enough for 2 chicken rice & 2 drink ...

This post has been edited by gark: Jan 11 2013, 01:48 PM

This one high possibility. With the Paradigm KJ, and KLIA2 Mall coming in June 2013 (rental space available for booking now).

The analyst forgotten one more mall and 2 hotels owned by WCT to be injected as well. Aeon Bukit Tinggi - 1.1 mil sqft, Premier Hotel Klang (250 room) & Premier Hotel Kelana Jaya (350 room - on progress)

Also another mall schedule to complete in 2014 is Paradigm JB & Premier Hotel JB.

Recently they have restructured the company in which all property assets is injected under WCT Land & separate from the construction company (WCT Berhad) expected to be complete in 1Q 2013.

All arrow point to creating a new retail mall REIT..

This post has been edited by gark: Jan 15 2013, 02:18 PM

This one support.. no need to pay the 10% tax.

Normal dividend tax - tax is not payable at company level (tax credit given for dividend paid), but is taxed at individual level at 25%, can claim back on declaration of income tax.

Single tier - Tax is payable at company level (on the total profit, no tax credit given), means the individual is not taxed again. On average corporate tax is 18%-22% depending on deductibles.

Withholding tax (REIT) - means it is not taxed on company level (0% corporate tax as long as 90% payout) but 10% individual level & cannot claim back.


Best is Singapore stocks... no capital gain tax, no dividend tax & no withholding tax.

This post has been edited by gark: Jan 18 2013, 01:03 PM

NAV drop = margin call...

This is not impossible, HK property is expected to drop 20%...



This post has been edited by gark: Mar 23 2013, 12:57 PM

All reit tax is final and non refundable wether you my or foreigner.

Haha best quote of the day....

This post has been edited by gark: May 20 2013, 06:03 PM

Ya meh? I don't remember mentioning about ikan bakar.. i think from sky gor 1...

Did you all notice that across the border, reits have been falling like a rock for the past week or so? If you all are still so confident of reits you might want to pick up some bargains there...

Also regional bonds are all on the selloff and yield is beginning to climb, this might affect finance rates.

This post has been edited by gark: May 30 2013, 10:02 PM

Not in Malaysia lah.. look in Singapore...REITs are falling...

Yields are climbing.. Malaysia has not felt the effect yet...

Bond fund sell off, interest rate spiking, harder to raise capital.

These have not directly affected the reits yet, but a lot of holders are taking precaution by selling off and locking in the gains.

Looky here...

http://passivecashflowseeker.blogspot.com/...-continues.html

But keep a watchful eye IF Malaysian REIT's caught the same 'disease' It might catch or it might not...

Bond is only safe if you hold it to maturity. If you buy through bond fund, they do not usually held to maturity and mark to market.

Longer term bond and non investment grade (B and below) bond will be the most affected as the price of the bond FALLS to compensate for higher interest rate.