thought the fund is used to pay off debt they used to buy overseas hotel?

it seems like its not error for axis, the price went up to 3.3 den back to 3.22 again

I beg to differ, IGB should have better growth, Axreit is already fully leveraged up to the hit. IGB reit D/A ratio is still very low, can acquire more properties using loan, no need to resort to private placement and rights issue.

Private placement will dilute holdings of existing holders AFAIK

Yes...dunno what happened

my biggest losign counter now...ironic. My unknown stocks are most profitable lol

Yeah different thought.. i look at the risk factor as well. I tend to avoid highly leveraged REIT as you will not know when the debts comes calling.  I prefer safety for Reits rather than active management, if I want active management I will buy stocks instead.

High leverage equals to high DPU, but carries more risk as well. Devaluation of property can push D/A ratio over the legal limit hence need to raise capital. So is rising yields, which will impact a highly leveraged reit first. A loower leverage reit will able to weather this problem better.

Example of the SGX reits which were highly leveraged, all hit with revolving debt/ debt service problem during 2008, and  need to raise capital suddenly, end up selling their reit for cheap? I would not want to be an unit holder position during that time. 

No need for BNM interest rate hike. Most REIT use revolving credit, MTN and fixed rate instruments, those are affected by MGS yield. Some even have sukuk or bonds, which is even more affected by MGS yields.

BNM can keep interest rate low, but as yields goes up, REIT's cost of capital will increase as well. 

Homework homework! Gotta do your homework
So they will likely issue additional ~310 mil units under PP to YTL corp and another ~490 mil units to other identified investor.

So 800 mil additional new shares to existing 1.34 billion shares.. means after the PP, exisitng shareholder will be diluted to 64% of their holdings. 

BUT new properties will add more income, depends if the new income is able to cover the dilution is the biggest worry AND the 60% D/A maximum..

Can't sell thn avg lor. 

We're in the same boat 

given of choice of AMFIRST, ARREIT and STAREIT which is around the same price, given a 50K fund, which one would you invest?

Yields also not equal 

Let say FD yields  3% x 5 yrs = 15 % low

1) REITS yield 5% x5 = 25% High
( but Minus Capital  loss = 15% hidden ) net is 10% over 5 years

Many foumers still say REITS are far better than FDs in yields ...........but I say it depends on the timing (how long ago )  u buy ......

BTW FD yield is almost certain and could be better in the future , but can REITS break the 4 % barrier  ?

That is why most forumers  say reits investors say Capital loss is secondary, is it really true ? or rather self assured.......

Well first thing first, it is often said that Capital element like Capital Gain is only secondary when investing in reits.......

In a way, new comers may think there is very low chance of a capital loss aka part of a Capital element ......

Though there  seemed to be unspoken words ( or rather hidden )  of Capital Loss Concern  here to show,   BUT  actually many actions taken by the forumers proved that they were relatively unconcerned about Capital Loss in the first place........

One good example is whenever REITS traded at Peak Prices ( few months ago )  and just drops a mere 3 SEN or so, many jumped in joy of going to sapu at 3sen opportunity gain  ........in other words , no fear of further Capital Loss at all.

( Well, concern starts to surface after maybe after a 15 to 20% drop from the peaks  )

Gark and I sounded out about the impact of Fed Tapering, but mostly forumers regarded as noises....( so no concern , right ?  )

What I say is more of the actions taken by the forumers than the actual spoken words .....

In my stock analysis , I learn about unspoken words ( hinting )  of CEO in the reports too to judge the future Directions of a company .

My apology if I offend any one of you ......

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hmm... 

so the MGS already peack..

Fed Qe tapering again still got impact ??? maybe those foreign fund

That's why hmmm.... lets look at further out....

Previous peaks was 5%.. so no.. we are not at the peak, but already near multi year average.. there still could be further downside, but the risk is lower now compared to buying near the bottom during 2011-2012. 

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Yes for BNM to adjust interest rates they will need to see the impact from MGS yields, monetary policy,  inflation, state of the economy, trade deficits etc etc. Everything i connected to each other and everything influences everything. Thats what makes macro economics so hard to predict. 

For example in Indonesia interest rates have been steadily rise from 5.25% to now 7.5%, the 10 year govt yield is actually leading the way and moving ahead of the interest rate rise. (ie spike before BI adjust the rate to correct the 'imbalance')

As you can see now Malaysia MGS yield has also run ahead of BNM.. MGS yield went up from 3.2% to now 4.1%, which BNM overnight rates is still 3%. This is the same as what happen to Indo govt yields before BI decide to raise interest rate.

For retail lending purpose, yes, BNM rates are used as reference as in BLR.

For commercial lending purpose like MTN, sukuk, fixed rate instruments, interest rate swaps, commercial bonds, perpetual bonds, revolving credit actually use MGS yield is used as reference and not BNM overnight rates. As evidently can be seen in 1st tranche sukuk at 4% and later 2nd tranche at 4.58% even though BNM over night rates still stay the same.

Not everything can be based on BNM rates, sometimes the market adjust it self faster than BNM.  Hence we observe govt bond yield to see further down the curve.

Asset Deflation associate more with Advance Economies than let say with emerging economies , probably due to HIGH GEARING  per se. Through Gearing , assets can be produced in masses . And with Easy Credits, making it worse...

The end result, risk goes up after something " wrong "  happened to Gearing along the way i.e cashflow problems

My reason for higher yields for Singapore reits cos they are of higher risks  ( economy class/ gearing ) , and hence faster  Asset deflation problems .

What do you think ? Sounds Logic ?

Singapore Govt is rich, but I refer to Singapore REITs which I think ( might be wrong ) as weak.

What I know of WB bought lot of abandoned properties at the time when market shunned it.

What I say generally Gearing and easy credits are popular tools to build wealth in Advance Economy aka the private sectors  , not saying it is bad.

But when economy takes a bad turn, cashflow problems may surface . So asset deflation becomes more severe when everyone is looking for buyers .......if they cannot find more Gearing.....

Certainly some companies are cash rich like Apple, but not generally across the board type.

Ya as I say,  Advance economies  like Japan and  HK reacted fast to Dow movements.

But then again, Dow could fall due to good economic Data , like what u say ....

Why, Gearing n cashflow are a concern due to Tapering........The word Tapering is not so severe as " totally stop " yet asset deflation by Billions or trillions worldwide......

That is why I like Net cash companies, but still cannot afford to buy Apple shares.....a distant dream maybe