Look at what happened to AmFirst REIT...

that is assuming the yield in $/rm stays the same, so the buy is fine in terms of yield%.
if the price falls by say 20%, and the div shrinks as well, the yield % for the old price is no longer attractive.
i suppose it is about how much yield% one can accept with current div/orig purchase price.
that is when one starts to mull, " shud i sell that crap and buy the other one now with greater yield%?

i say there is a need to prune, even for reits. not the smartest idea to buy reit and never sell. just me, maybe...

the statement, "buy reit and hold forever becos it's for div, cap gain is a bonus" is not entirely comforting. what do you call it when the price drops 20%, 30% like so many? a penalty? a curse?!!

Heheh - i'm with U here.
i "prune" if my DY% falls below 6%pa (CAGR) after holding >1yr
OR
the D/E or leverage is >50%

Personal reasoning:
a. General bond funds' long term (>=10yrs) return is approximately 4%pa to 5%pa (CAGR).
why take the extra risk by holding if the donkey REIT's returns is near simple bond funds?

b. If the REIT is taking on more leverage to achieve dividend payout / yields %, the management is "too optimistic" for my blood.

c. Why not based on price?
Well, if the DY% and D/E is good, there will be buyers, thus price-wise should NOT be a prob.
If price DOES goes nuts downwards, there will be value buyers (like me ) buying in & supporting the price at certain DY% returns.

Just a thought

There is never guarantee that reit distribution won't shrink nor price won't drop.
Reit is not a guarantee fixed income instrument, if it is, it won't carry 6~7% yield.
It carries risk of distribution drop, property price crash etc.

I am not saying one doesn't need to prune, but one cannot worry off the price each day.
What I meant is, when you first bought the reit, one should have the mindset that you do not aim to sell the reit for capital gain as your goal.

While I do not mean one cannot or shouldn't sell the reit.
If the reit fundamental chance, property market crashing down, sell quick quick.

As long as fundamental issue is intact (consistent yield, good property portfolio with good management), then price is not a major worry if one able to hold on the stock and targeting its yield.

Although I won't dare to say never sell a good idea, but if one has not sold Axreit since 1.xx until now after 5-6 years, has been getting handsome profit.

If one is afraid of price depreciation, one won't able to hold many stocks in reality.
Axreit price dropped from 1.60 when I first bought, to 1.00, a 30~40% plunge, that easily will scare off and worry many investors.
But when I set my taught to only getting its dividend and forget the price depreciation side of worry, then I able to hold the stocks and buy again, which enable I hold it until now.

Same with the story of one has never sold Genting or PBB or KLK share since 1970 or 1980's, they are pretty well off with the stocks as well.

If distribution/dividend able to stay intact, then most of the time their share price won't drop too much one.
They key is always the ability consistent yield that a stock can give.

Yes, we still need to always assess the reit situation, reit is not a foolproof investment, but mindset to hold the reit must be there in the first place, this is what I keep on mentioning.
If sovereign bond is carrying 6%, then there is no reason to buy reit at 6%, you demand at least 8~9%, so reit price need to be lower.

Each reit has its own fundamental issue as well, there are some "weak" or poor performance reit, or its property portfolio may not as good, so one still needs assess each individual reit with different approach.

This post has been edited by cherroy: Jul 13 2014, 09:29 PM

Both Well said Sifus!

Exactly what I felt about REITS when I started putting money into REITS. Though short (3 Years ++ only), but my profit has been encouraging. Well said Sifu.

UOAREIT announced results...more or less stagnant
http://www.bursamalaysia.com/market/listed...cements/1685753

5.27 sen divvy declared
http://www.bursamalaysia.com/market/listed...ents/35345?m=ca

Translating to about 6.9% p.a. net yield as at closing price of 1.38

This post has been edited by Pink Spider: Jul 16 2014, 05:34 PM

Pink Spider,

Where is your siggy stock portfolio ? you remove

Do you expect REIT to grow 10% a year?

msia reits, no... in fact, i expect some will drop earnings/div soon due to gst and overall high inflation.

still, uoa div yield is decent. no cap appr but very stable, among the best i hv, can keep.

it attracts stalkers

10%? Mad ar

I hope to have like, 3-4% annual growth in earnings lor, to keep with with inflation

Lastest Q report shows 2% growth in rental, but offset by rising expenses

This post has been edited by Pink Spider: Jul 16 2014, 05:52 PM

they cant rob u.....

Sharing is Caring.

SOME lyn ppl knows me in person

ceh, u share yours first! u oso no share

This post has been edited by Pink Spider: Jul 16 2014, 05:54 PM

so uoareit is ok to buy?

to me, the price is very stable, yield good enough.
the assets are good in good areas.
but... liquidity is not so good, not much buy-sell everyday.
not like the major mall reits.

so, u hv to decide for yrself...

if average 5-7 sen dividend, then good enough la.

About 6.8% NET yield

Prime location offices. Not much liquidity, yes. But if u buy and intend to hold for yield, just take the Seller's price lor...just 1 sen difference only.

What about IGB Reit
can provide some insights??

I think net yield is less than 5.4% now

refer here:
http://mreit.reitdata.com/

note that the yield displayed are GROSS before deducting the 10% withholding tax

This post has been edited by Pink Spider: Jul 17 2014, 12:54 PM

Sifu-sifu,

Dividend announced 16/07/14
Ex-dividend 01/08/14
Entitlement 05/08/14

If I buy the shares now i.e. before ex-dividend 01/08/14, do I get the dividend of 5.27 sen?

I googled but still confused...

This post has been edited by Hollow21: Jul 17 2014, 01:46 PM