Dividend next 2 months to be declared will not be affected even there is interest rate hike. Eg Qcap 4sen, UOA Reit 5sen, etc.

hmm mine from klcc also maybank2e, is something like this
Dear Sir/Madam,

We wish to inform you that the below net dividend due to you will be paid to your designated Bank Account as follows:

DIVIDEND KLCC PROPERTY HOLDINGS BERHAD (641576-U) DIVIDEND NO 25

DIVIDEND TYPE : FIRST INTERIM
BANK ACCOUNT NO. : XXXXXXXXXXXXXX
BENEFICIARY BANK : CIMB BANK BERHAD
PAYMENT AMOUNT : RMX.XX
PAYMENT DATE : 18 June 2014
CDS A/C NO. :

Dividend of reit comes from rental income, not from interest rate.
How much the rental income/profit made by the reit, how much the dividend/distribution will be.

Interest rate hike just made the yield for reit may be less attractive than before, therefore may result in lower reit price as investors may demand higher yield before investing in reit.
High interest rate may also a potential factor higher cost of borrowing, which can reduce the earning of reit.

It will affect future earnings

A 0.25~0.5% hike shouldn't have significant impact.

Most borrowing and refinancing have at least 2-3 years before it needs to be refinanced again, so impact of earning will only be seen when their borrowing due and needs to be refinancing.

Interest rate is up, but why does AXREIT close higher?

QUILL CAPITA TRUST

MULTIPLE PROPOSALS QUILL CAPITA TRUST (“QCT”)
(I) PROPOSED ACQUISITION BY MAYBANK TRUSTEES BERHAD, ACTING SOLELY IN THE CAPACITY AS THE TRUSTEE FOR AND ON BEHALF OF QCT, OF PLATINUM SENTRAL FOR A PURCHASE CONSIDERATION OF RM750,000,000;

(II) PROPOSED PLACEMENT OF BETWEEN 55,000,000 NEW UNITS AND 85,000,000 NEW UNITS IN QCT (“UNITS”) BY WAY OF BOOKBUILDING AT A PRICE TO BE DETERMINED LATER;

(III) PROPOSED AUTHORITY TO ALLOT AND ISSUE UP TO 3% OF THE TOTAL UNITS IN CIRCULATION OF QCT FOR THE PURPOSE OF THE PAYMENT OF MANAGEMENT FEE TO QUILL CAPITA MANAGEMENT SDN BHD IN THE FORM OF NEW UNITS;

(IV) PROPOSED INCREASE IN THE EXISTING APPROVED FUND SIZE OF QCT FROM 490,131,000 UNITS UP TO A MAXIMUM OF 700,000,000 UNITS;

(V) PROPOSED CHANGE OF NAME FROM “QUILL CAPITA TRUST” TO “MRCB-QUILL REIT”; AND

(VI) PROPOSED AMENDMENTS TO THE TRUST DEED (COLLECTIVELY REFERRED TO AS THE “PROPOSALS”

http://www.bursamalaysia.com/market/listed...cements/1683153

This post has been edited by davinz18: Jul 11 2014, 05:52 PM

must be the speculation that sime will buy axis to inject their own props into it.

very few sellers these days... all waiting for buyback price!

well... maybe it's all just a rumur, no basis... or is it??

Kenanga Research retains Malaysian REITs at Overweight
http://www.thestar.com.my/Business/Investi...-at-Overweight/

over weight ?

BLR increase ?

what next ?

grow ? or Drop ? LoL

Hold n buy

For kecik meow retail investors, we should not be overly worried about interest rate movements.

Reason being, we have no (direct) access to the bond market.

Just base your REIT investing decision on whether u are happy with the yield offered and the rental reversion potential of the REIT.

E.g. CMMT 5.4% net yield, whether 12-M FD rate is 3.1% or 3.3% should not concern u...would u dump your CMMT and shift to 3.3% FD? I don't think u would. If u are holding for very long term...just ignore the price movements.

totally agree
hold long term, small price movements wont matter

Just to add, REITs are not meant to be traded, and are not a good short-term liquidity parking facility. U don't invest in REITs money that u need to pay your car insurance and road tax renewal next year.

U buy and hold REITs for years.

This post has been edited by woonsc: Jul 12 2014, 10:20 AM

agree! already hold for 3 years,and hoping to hold it for years.returns so far not too bad

i agree this...

REIT is like, you find a nice land ... plant seeds, and wait for harvest fruits...

For me,


Unless there is chance in fundamental of the reit itself (its property portfolio turns bad etc)

A 2-3% difference between reit yield vs FD, can be significat over the long term.

A 100k, FD 3%, gives you 3000 pa
A reit 6%, gives you 6000 pa

If compounded over 10~20 years, its difference is significant.

That's why I always insist you buy reit because you like its yield and able to give consistent yield over the long term, and primary is not for reit price appreciation.

U assume REIT price static throughout d duration
In actual scenario, price may goes up or down
In a worst case scenario, any loss on price movement may be insufficient to cover the additional (RM3k) dividend pa

If I invested 100K into reit and the reit is consistently paying out 6% over 10 years, then I get 60K over the 10 years (set aside the compounding issue).

If the reit can consistently payout 6% over the decade, I doubt the reit price will have any major loss in price as well, unless FD rate goes beyond 5~6%, which I viewed unlikely to happen in my rest of life time.

Reit price is always move because of 2 major factors
1. Attraction of its yield vs FD/bond yield.
2. Consistent yield.

You buy the reit because you like its yield, and once you bought the reit generally, one shouldn't sell the reit hence do not care its price goes up and down in between and treat it as long term fixed income generator asset.