Let's discuss...

Office space...they're mushrooming everywhere. Quill is more into office space with the exception of Tesco Bkt Jelutong.

Whereas Atrium is all industrial, mostly occupied courier/logistics companies. I THINK the chances of logistics firms shifting is smaller

I'm thinking chances of logistics firms to shift is quite low, but finding new tenants is also very hard. For office, you need to know where is the industry normally located at. For e.g. O&G firms will located around KLCC as the communication channel is easy. I have not done any research in office & industrial reits btw

so, what REITs have u researched? share la...sharing is caring

not technical research by the way, just some common sense. maybe everyone ady know what i want to share here.
I quite satisfied with igbreit actually (15% nett profit growth). The growth that i believe is the bridge connect from abdullah hukum will bring more traffic into the mall. Imagine now midvalley so jam, people still going into the mall like never taste the jam before. How about there is a bridge to smoothen (hopefully) the traffic? The other 1 is southkey megamall where i believe they will inject into igbreit (anyway, still need to wait...............) because they want to release the property value that could earn few times of their cost, instant cash.

aiyoyo, I just sold a bit of IGBREIT to diversify into CMMT and UOAREIT, now u ask me buy in again?

cmmt quite good in their management also ma.. uoareit have good office space also ma..

Aiyoyo, takkanlah nak beli semua...nanti u say Atrium also good...Quill also good...Axis also good

CMMT and UOAReit is GOOD...

the important in the location and obtain tenant from shifting out.

BUY all lah...

RM2k each

at least i dont tell u ytlreit is good for me, a reit that is able to grow is much better than stagnant 1

hardly growth..... I dumpt it after 1 year

REITs that I NEVER see:
- YTL
- Amanahraya
- AmFirst
- Hektar (due to high gearing)
- Al-Aqar
- Tower

The rest all I also got a bit itch to buy...be Bolehland version Pahlawan Dividen

PAVREIT AND SUNREIT....not dicuss.

Sunway got exposure to hotel...I not comfortable with that

PAV...net yield <5%

For me:

Bluechip REIT: UOAREIT, AXREIT, IGBREIT, CMMT,

second rank REIT: QUILL, PAVREIT, SUNREIT, HEKTAR

No need see REIT: the rest of the REIT not listed.

all ranking is arbitrary. No indepth analysis is done, just based on simple calculation and common sense.

so I disagree with one REIT above.

Atrium?

sunreit may get slightlt above second rank if they exclude hotel.. usually developer release their property for instant cash by converting into reit..

I think you have no experience on when Atrium lose its tenant time in one of its property, and DPU plunged down to around 6 cents, its share price did plunge to around 0.7x~0.8x.
Since that event, I realised the importance of size and diversification is much needed.

The disadvantage of Atrium is its size and fewer property in the portfolio. Hence less diversification, a property or 2 cannot rent out, it will result in big impact on the earning. Whilst for the like Axreit with 20~30 properties in hand, a property cannot rent out, the impact is not as big.

Industrial offer steady/stable yield when they are leased, generally longer lease than office space. But the problem is when lease expired and the tenants want to move away time, then it is not easy to find another one demanding the same industrial space/layout and same major makeover may need to cater the new tenant as compared to office space just square room space will do.

Still location of the property is one of major important factor dictate the property yield and valuation appreciation issue.

This post has been edited by cherroy: Aug 15 2014, 02:13 PM

do u want to invest in an REIT that never increase its distribution for the past 11 times? if you dont mind, then invest in ATRIUM. ATRIUM is my first REIT I bought, buy 1.38 sell 1.5 ,never see it anymore.

btw, It is in my no need see REIT list, REIT which has low negotiating power to increase rental reversion. All DPU come from rental reversion and reduce debt cost at the same time.Debt rate is control by Bank Negara and investment sentiment. But you can control the tenant you want and do AEI or increase traffic to increase rental revision.

Thanks cherroy for the heads up

So, Quill
Mostly multinationals and call centres/shared services centre to me