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 M Reits Version 6, Malaysia Real Estate Investment Trust

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Life Adventurer
post Mar 2 2014, 05:19 PM

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Joined: May 2013


QUOTE(smartly @ Feb 15 2014, 01:19 PM)
This will cause lesser DPU in future ?
Investment of 1b, believe 50% will be on loan and the other half from profit ?
there goes our DPU.  sad.gif
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Hi guys, I also a fan of malaysian REIT.

I buy Sunway REIT with primary intention of getting its dividend (6%) which I bought @ RM1.26.
I think every REIT in malaysia has its potential, but fluctuate due to economy cycle. I prefer SREIT over others due to:

1) Management team & business strategy.

To me, this is most important criteria for buying in a company. If management team is good, they are always prepare for worst to come and the biz will fly high when economy goes up.

Sunway focus on Hybrid quality business model. For example, they own Sunway Pyramid, Hotel & Spa. I think this is good strategy coz it creates chain of demand. Imagine, tourist lives in HOTEL will need foods & entertainment (Pyramid & Spa serve this purpose). And, SREIT also has office/commercial properties and Sunway Medical Centre.
All this will help to improve & mitigate risk in particular sector. And their latest development in Sunway Putra Mall (which also a combination of Hotel, Shopping Mall etc) will create a synergy to drive up economy around. PWTC also around.

2) Trading perspective

I believe price of SREIT will go down further, maybe to RM1.20. I don't know but I hope it will reach that level so I can buy in more for up to 7% dividend yield. I think reit price in overall industry go down due to investors are bench marking reit yield with bond yield which go up to 4% - 5% recently. So, the market is expecting (and push down) reit price to reasonable level that allow investors to get a handsome yield of 7%.

3) Future prospect

I believe sunway efforts to turn a once failure to success will bode well once their asset enhancement initiative (renovation) ended and the mall reopen in 2015. Imagine, the strategic location with LRT station across the road (right in PWTC), how much people will be attracted to the mall & hotel?

So I hope Sreit price will fly high later. And this is the right time for investor to come in for bargain deal.

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