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 REIT V5, Real Estate Investment Trust

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gark
post Dec 3 2013, 05:07 PM

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QUOTE(Pink Spider @ Dec 3 2013, 05:01 PM)
Meleisial Bull-eh really shakehead.gif
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Only 50 lots sold down Axreit..small amount only, the seller must have key in wrongly due to bursa buggy hahahahaha. laugh.gif
gark
post Dec 3 2013, 05:51 PM

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QUOTE(Pink Spider @ Dec 3 2013, 05:43 PM)
The buyer(s) can sembelih ayam sembahyang tuhan for this windfall doh.gif
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only earn how much only..? 5000 share x 0.14 = RM 700.... tongue.gif Not exactly big windfall leh..
gark
post Dec 3 2013, 09:20 PM

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QUOTE(CP88 @ Dec 3 2013, 09:05 PM)
Sifu gark really gaining a lot of publicity though.  tongue.gif

Eheh, I thought last u caught lots of directionless bunnies on CMMT  drool.gif
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I am not sifu ler... rclxub.gif

I am buying reits to park my trading profits only... so i dont count on it to have capital gain....

This post has been edited by gark: Dec 3 2013, 09:23 PM
gark
post Dec 3 2013, 09:28 PM

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QUOTE(lambethwalk @ Dec 3 2013, 09:23 PM)
CMMT banyak volatile..

second only to fake reit KLCC  rclxub.gif
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Actually its the sharp drop of cmmt is what makes me interested in the first place. Especially the drop after it announce it will not buy tropicana... rclxms.gif
gark
post Dec 3 2013, 09:49 PM

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QUOTE(CP88 @ Dec 3 2013, 09:31 PM)
Wah! U really happy they don't buy Tropicana! Why leh?  icon_question.gif
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Tropicana mall is asking too high price hence will dilute the yield, further more include office tower which is not so good.

Prefer they go after queensbay mall in penang.. thumbup.gif
gark
post Dec 3 2013, 09:50 PM

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QUOTE(lambethwalk @ Dec 3 2013, 09:31 PM)
gark,
this is the first time i see your 'fast n furious' side
tee hee hee tongue.gif
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Ha buying reit also fnf meh? Not like turtle run? hmm.gif
gark
post Dec 3 2013, 11:02 PM

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QUOTE(felixmask @ Dec 3 2013, 10:23 PM)
HI gark,

Im doubt you at Indonesia.
Tropicana mall only 2years.
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I do come back every 4 months what... tongue.gif
gark
post Dec 4 2013, 09:32 AM

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QUOTE(felixmask @ Dec 4 2013, 09:18 AM)
im not said he bad but a great SIFU of WB Disciple

but he like everywhere....

Maybe he is SUPERMAN flying around with RED UNDERWEAR.

Or Ah PEK Flittering rich....everday read Finanaical Statment on stock only and stay next to plantation.

My own portfolio, alos take few day to read complete after everyday work.

thumbup.gif  thumbup.gif  thumbup.gif  He a great Stock Advicer....

forgive me  notworthy.gif  notworthy.gif
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Apa lah.. i am no sifu... leh. shakehead.gif

I work related to plantation, but not live next to plantation. rolleyes.gif


gark
post Dec 4 2013, 09:33 AM

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QUOTE(felixmask @ Dec 4 2013, 09:21 AM)
take BOAT or AA???  come back Penang or KL every time ?
Really must learn how you manage your time

Work, Stock and Family....

If got luck, really must belanja your MAKAN  icon_rolleyes.gif
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I live in PJ area.. take flight back lah.. FOC company pay one.. part of 'package' laugh.gif
gark
post Dec 4 2013, 09:37 AM

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QUOTE(river.sand @ Dec 4 2013, 08:33 AM)
Even if STAREIT got dilution, the fund raised from right issue will be used to buy new properties, which in turn will increase income. But we do not know whether the new income will be enough to offset dilution...
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Rights issue is very very bad for dividend/REIT investor... give you dividend then ask back all the money for rights OR you get diluted. shakehead.gif Like this no longer 'passive' income de... doh.gif

That is why when there is rights issue for REIT, there will be selldown, look at SGX reits who issued rights. That is why MY reits prefer private placement and dividend reinvestment plan i.e. killing you slowly.... laugh.gif

That is why i prefer REITs which is not heavily leveraged, one is they can grow with further adding of properties and next they have debt headroom no need to resort to nonsense like rights issue/private placement/etc... rolleyes.gif

This post has been edited by gark: Dec 4 2013, 09:39 AM
gark
post Dec 4 2013, 11:07 AM

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Haha Axreit one of top gainer today... +14 cents.. tongue.gif
gark
post Dec 4 2013, 11:43 AM

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QUOTE(elea88 @ Dec 4 2013, 11:41 AM)
Y THE sudden increase?
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yesterday someone key in wrong selling price... laugh.gif
gark
post Dec 4 2013, 02:14 PM

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QUOTE(SKY 1809 @ Dec 4 2013, 01:35 PM)
Not always " wrong key in" , could be  a forced sell from a bank margin account.
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could be also.. but if force sell, then should sold at best price right? Why sell something 10-12 cents lower then buy queue...

but we will never know... tongue.gif

This post has been edited by gark: Dec 4 2013, 02:15 PM
gark
post Dec 4 2013, 05:05 PM

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QUOTE(yok70 @ Dec 4 2013, 05:02 PM)
i switched some of my igbreit into axreit today, as they both same yield now, and i expect axreit to have better growth potential as compare to igbreit in the next 3 years.  cool2.gif
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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.
gark
post Dec 4 2013, 05:29 PM

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QUOTE(yok70 @ Dec 4 2013, 05:16 PM)
IGBreit management pointed out that they do not intend for any acquisition in the near to mid term, they will just focus on organic growth in Midvalley and Garden. I bet their next acquisition can only be the Johor megamall, which will only happen in 5-8 years time when the earning stabilized after finished building it.

Axreit has the benefit of highly diversified smaller scale properties, which provide room for selling some of those which yield lower for their like. As property price are higher than before, we can get special dividend for the profit earned. In pass few years, we see this happened at least 2 times if i remember correctly. And if not paying us special dividend, they can use the money received from disposal to acquire new assets with better yield. Flexibility is there, unlike shopping mall reit which need huge money for any acquisition as malls are expensive large size asset.

Just some thoughts.  laugh.gif
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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. laugh.gif 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. whistling.gif

This post has been edited by gark: Dec 4 2013, 05:35 PM
gark
post Dec 4 2013, 05:43 PM

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QUOTE(yok70 @ Dec 4 2013, 05:39 PM)
Thanks for pointing that out, agree with you that high leverage = higher risk, especially many have been talking about interest rate hike non-stop (Cherroy may jump out again and denied interest rate hike in near to mid term  tongue.gif ).

Anyway, WB said  ‘Stop trying to predict the direction of the stock market, the economy, interest rates, or elections.’  tongue.gif
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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. wink.gif

This post has been edited by gark: Dec 4 2013, 05:45 PM
gark
post Dec 4 2013, 07:16 PM

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QUOTE(yok70 @ Dec 4 2013, 07:02 PM)
gearing (roughly):
low: pavreit 20%, igbreit 25%
mid: axreit and sunreit 35%
high: hektar 45%

nod.gif
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Axis REIT

Total Asset : 1,585,420
Total Liability : 572,405
Total Equity : 1,013,015

D/A = 36.1%
D/E = 56.5%

IGB REIT

Total Asset : 4,711,552
Total Liability : 1,323,225
Total Equity : 3,542,799

D/A = 28%
D/E = 37.3%

Having the SAME yield, i would say IGB REIT is having more margin of safety. wink.gif

And there is a reason Hektar is having much higher yield to compensate for the risk laugh.gif

and why PAVreit is only 4.5% yield..

This post has been edited by gark: Dec 4 2013, 07:19 PM
gark
post Dec 4 2013, 07:58 PM

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QUOTE(lambethwalk @ Dec 4 2013, 07:43 PM)
hmmmm stareit is rights meh? i thought PP only?

yok: yes thats what the board said about no dilution. and they gave some reason for it.

being newbie, i didn't quite understand all the jargon here and there  sweat.gif

maybe coverup, saya pun tak tau..
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Homework homework! Gotta do your homework rolleyes.gif

QUOTE
STARHILL REAL ESTATE INVESTMENT TRUST (“STARHILL REIT” OR “TRUST”)

(I) PROPOSED PLACEMENT OF NEW UNITS IN STARHILL REIT (“PLACEMENT UNITS”), AT A PRICE TO BE DETERMINED LATER, TO RAISE GROSS PROCEEDS OF UP TO RM800 MILLION;
(II) PROPOSED INCREASE IN THE EXISTING APPROVED FUND SIZE OF STARHILL REIT FROM 1,324,388,889 UNITS UP TO A MAXIMUM OF 2,125,000,000 UNITS; AND
(III)PROPOSED INCREASE IN BORROWING LIMIT TO 60% OF TOTAL ASSET VALUE

Hence, the Proposed Placement will involve the proposed placements to (i) YTL Corp to raise gross proceeds of up to RM310 million (“Proposed Placement to YTL Corp”) and (ii) other placees to be identified at a later stage to raise the remaining gross proceeds (“Proposed Private Placement”) to raise the aggregate gross proceeds of up to RM800 million.

The issue price for the Placement Units to be is sued pursuant to the Proposed Placement to YTL Corp will be similar to the issue price for the Placement Units to be issued to other placees pursuant to the Proposed Private Placement. Save for the above, all other terms ofthe Proposed Placement remain unchanged.


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. wink.gif

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.. sweat.gif

This post has been edited by gark: Dec 4 2013, 08:01 PM
gark
post Dec 4 2013, 08:12 PM

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QUOTE(lambethwalk @ Dec 4 2013, 08:09 PM)
hehehehe...

my reits portfolio are in cold storage. not even in my watchlist ....

guilty as charged, no homework done. only attend agm tongue.gif tongue.gif tongue.gif
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YTL agm very kedekut one... usually no FOC food 1.. thats why no one attends.. rolleyes.gif

So starreit agm got free makan or not?

This post has been edited by gark: Dec 4 2013, 08:12 PM
gark
post Dec 5 2013, 10:33 AM

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QUOTE(lambethwalk @ Dec 5 2013, 10:32 AM)
attended very few only... so far. to learn smile.gif
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Ah lamb very free one.. can anytime attend AGM.. laugh.gif

This post has been edited by gark: Dec 5 2013, 10:34 AM

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