1. Fund size is big.
2. Mall reit may weather the downturn better than office/industrial reit, aka have better normalise factor, hence distribution may be much stable.
3. High liquidity.
4. Easy to trade or even speculate upon, as it moves up and down fast.

Don't get me wrong, I do not mean other reit are inferior or less attractive as compared.

This post has been edited by cherroy: Dec 23 2016, 05:21 PM

Alternatively, can spread the investment into few big cap reit to mimick the ETF, after all most funds or ETF portfolio also probably consists and heavy in big cap stocks.

Treasuries spike beyond 2.5%, potential another round of sell off coming.

Low risk, lower yield loh.
Want higher yield, need to withstand higher risk and more uncertainty ahead.

A trade off.

Want high yield with good steady reit/stocks, need to wait for sell off "carnival", that generally only occurred once to twice in a decade, based on global stock market history.

The last big sell off was 2008, almost nearly 10 years, due another one?

Shareholders generally do not like right issue very much.
It may just mean shareholders need to fork out more money.

The reason of fall in share price may be due to
1. The right issue is priced at a quite big discount to current share price,
2. After the right issue, DPU and NAV will be diluted marginally. This is the most concern by shareholders.

Based on the report,
http://www.theedgemarkets.com/my/article/a...ny-acquisitions


This post has been edited by cherroy: Mar 7 2017, 05:08 PM

Seems like rate hike is baked into the market, treasuries yield is more than 2.6%, another round of sell off of reit is expected.

KDC DPU plunged because of dilution of new shares issued that needed to fund the new acquisition in the last Q of 2016

While the newly acquisition properties was expected to be finalised and only start to contribute income in the first Q of 2017.

Yup, should be.

Excluded the new shares dilution, its 2016 annualised DPU (if not mistaken) is 6.68 cents, in line of most expectation.

Based on its financial report, the newly property only completed on 20 Jan 2017, so there was period no income contribution in the 4Q result.
No income, enlarge share, that's why we see big drop in DPU for 4Q.

The newly acquired property is expected to be yield accretion.

This post has been edited by cherroy: Mar 22 2017, 07:10 PM

With current scenario (interest rate + Trump effect) Sreit is likely going nowhere, probably stuck at range bound across.

Interest rate may not spike but lease situation is not rosy as well.

So the aim is to have a reit that can provide a stable 6~7% yield.

1.032 is for 7 Nov to 31 Dec.

While for the full 4Q, they did distribute 1.76 total, means another 0.728 was paid earlier in the 4Q that make it total 1.76.

Are you sure CCT is having 8.x yield?

Based on its latest DPU (Jun->Dec 2016), the figure is 4.69 cents, annualised 9.38 cents
Current share price 1.53

9.38/1.53 = 6.13%

Already did.

Mreit low yielding make me to look for Sreit.

Mreit generally are yielding net about 4.x%, while Sreit counterpart are yielding 5.5 up to 7%.

In fact, disposing part of Mreit and switching to Sreit.

Set aside the dilution effect, I am more concern about the need of constant forking money to subscribe the placement/right issue.

Reit is supposed to be fixed income instrument, we expect it to generate income to us, instead taking more money from shareholders.

If a reit is constantly having right issue/placement, it defies the "income instrument" purpose of reit.

I opened to all suggestion.

My current watching list are
Starhill
CapitalMall
Maple log
KDC
Ascott (after the right issue)

Yes, this is ideal situation, but often right issue/private placement will be issued at a discount, so more and less there is a little dilution. Pricing of newly issued share can be crucial to determine the dilution effect as well, (Ascott is the latest example)

While if the right issue/private placement is placed at higher end and fund being used to fund a good yield accretion asset, then it is good deal, like KDC case.

Another good example of private placement is Axreit, whereby previous numbers of private placement didn't cause any dilution effect, as it used the fund raise to inject yield accretion asset, instead it improved the DPU going forwards.

I prefer to see reit manager using private placement to fund the new asset that is yield accretion, instead of right issue. Reit portfolio can be expanded, while DPU increasing while need existing shareholders fork out a single cent.

KDC DPU plunged in 4Q because of dilution of new right share issued that being used to fund the new property.
While new property only can start contributing income in the 1Q 2017.

Excluding the one off dilution effect, the DPU going forward is expected to be 6.6 to 7 cents, so translated yield is expected in the range about 5.7~6.1%. (I based on 1.15)

KDC is in my watch list mainly because long WALE and low gearing.

For Keppel reit, I don't know too much though.

This post has been edited by cherroy: Apr 2 2017, 05:10 PM

Yup, read it before.

I fully understand that DC may need more capital expenditure as compared ordinary logistic warehouses to maintain in the long term future, which is compensated by lower gearing.

Will look into Croesus to find out, thanks for the suggestion.

May be need to wait for "sell in May, go away" stock market myth.

Investing using margin is just like "Double down.
You win double, if everything fine, but you lose double (edited, + borrowing cost) when situation unfavourable.

Worst, share being forced sell when cannot meet the margin call, and all loss + borrowing cost are realised, then the end of the trade.

Last time, plenty of people as well as bankers are promoting investing using borrowed USD (especially during the height of QE), zero interest rate, USD plunging down, whereby borrowing cost can be as low as 2%, while everyone saw USD only has one way to go, aka down, due to massive debt, severe deficit, printing money non-stop etc..

Borrowed 2%, invest in other asset class that with yield 5-7%, just like free money is for taken.

But after 5-6 years later, see where is USD now.

So do not take for granted. Situation can change over time.

Often we heard the success story of how people get rich, earn big buck/easy money using margin/borrowing, but at the same time, there are people losing money as well, which generally we won't hear as generally people won't be sharing their losing trade, that may be including professional fund/portfolio/hedge fund manager...

This post has been edited by cherroy: Apr 6 2017, 09:58 AM

Fed intention to unwind the "QE" bonds will put a dent on reit bull, which we already seen some softening across after the Fed minutes.

At the same time, watch out the equities bull as well.