Based on a market stratergy report i read... it is expected MY interest rate by end 2014 to be raised to 3.25% only as preemptive to GST. On the other hand indon rates is expected to be reduced to 7% from current 7.5% since 3 months continously positive trade balance. Thailand also expected to raise rate. Others no change.

Then why did you buy at the first place with <5% net yield..

This stock will not be totally stagnant, expected to grow 6% p.a. from rental revision from 2014-2015... slow growth but still got growth

This post has been edited by gark: Feb 12 2014, 09:55 AM

IPO price have ZERO relevance to fair/market price... dont let this blind you...

But.. rental rates going up yearly....as long as % increase > % manager fee then should be ok...

Yep... at such high rental demand there... the renters have no choice. This is the strength of a good location.

Current waiting list to rent at midvalley is > 1 year...

Then again ... it will be passed to the consumer... eventually.. ie YOU.

Dont bother about par value also... got no relevance at all...

Setia Eco city is building next to midvalley... after completion even more high traffic.

Good for the mall though... office makan time sure earn.

So you think the mall in high demand in the future or not?

Eco city will be connected via kelana LRT then connect direct to MV.

This post has been edited by gark: Feb 12 2014, 10:11 AM

Just pointing out the facts mah.... but then again 5-6% growth is the max for REIT... so slow but steady growth...

This post has been edited by gark: Feb 12 2014, 10:13 AM

IMHO digi is already more or less at max value...

Same as what you should do with REITs...

This one you need to ask pinky...

Cannot use EPF as 'risk' free yield cause can go up and down.... and no guarantee hence not risk free.

Usually people use 10Y government bond as risk free yield... because the yield is guaranteed if held to maturity.

This post has been edited by gark: Feb 12 2014, 01:56 PM

Contrary.. all stock investments require monitoring.. REIT are NOT safer than other equities as those who suffered 20-30% capital loss recently due to REITs can attest to that.

Stock investment needs time to monitor the price changes, reading the Q results, understand interest rates, yields & macro economy changes and basically requires a lot of work.

There is no free lunch.

This post has been edited by gark: Feb 12 2014, 02:31 PM

Recently during CNY I heard one relative was saying and proclaiming that IGB REIT is a massive scam, sold off all the REITs, have 5 figure losses and will never buy any REIT again. The relative is not an old auntie but a college educated in his 30's...

I asked why and the answer is because the price went down, even below IPO price.

I ask what is wrong with that?

The answer I get is that REIT are supposed to be 'safe' investment with 'guaranteed' income for long term and therefore cannot sell below IPO price

Even after I offered explanation, the relative choose to go about her trashing of the REIt.

So I kept quiet and eat my peanuts.


Many people have wrong expectation for the supposed safety of REITs... if you want to invest, make sure you do your homework.

This post has been edited by gark: Feb 12 2014, 02:48 PM

Reits is not at all time low.. the all time low is during 2008/2009 where REITs are selling for 60 cents for the dollar...

High rentals does not mean the reit is good, it is all about dividend yield you get and the growth/stability of the yields.

Hence due to govt yields increase, we have a drop in REIT prices. Price and yield is inverted.

This one surprising... not auntie wor... overseas uni grad and still relatively young wor...

Alomak....


This post has been edited by gark: Feb 12 2014, 03:02 PM

Price not matter, yield matters.

Starhill is hotel based reit, while they Malaysian hotels are on long term contract which is good, but the Aussie is based on occupancy, which is a risk to earnings.