That is great news.
In the results, they say that profit after tax, management fee, is RM38M+.
But they are distributing RM41M+ as dividend.
Isn't that bad?

If you give more dividend than you actually earn, isn't that bad.
It will eat into their cash reserve - right?

I see, but there's management fees, finance cost and taxes that has to be paid, and this cost a net income less than dividend distributed.

http://www.capitamallsmalaysia.com/financial_results.html

I just want to understand this better.

Interesting point. What about finance costs?

I see. I am afraid its beyond me.
So essentially you are saying these REIT companies can afford to pay dividends like this way indefinitely, because they are not really using cash to pay of finance and management fees.

Yes I agree.
People are willing to pay higher rent if there is a bigger crowd coming in.
Gurney Plaza I feel is limited b that. People drive to Gurney Plaza, which is limited by car parks and road capacity.
Where as Sg Wang is going to be better with the MRT.

The only way for Gurney Plaza to attract higher rent is if they can cater to richer clientele, and sell expensive upmarket luxury items.

anyone knows why CMMT climbing?

I think a top ranking from US federal reserve said that US for sure raise interest rate next year. This usually means more pressure on Bank Negara to raise as well. Not good news for REITS.

yeah reits is mostly for dividends.
increased share price is a bonus.

REITS are not fast growth stocks. They are attractive because of their yield.
When people buy some, they usually look at the yield, management, gearing, and NAV.
For example, I bought some from CMMT because their parent company is quite strong, and the yield when I bought it was around 6.8% which was attractive to me.

The only reason why the share price will go up if they have a strategy to grow their profits even more and therefore giving more dividends. They usually achieve this by buying another property at bargain price or they improve their current properties to increase income. For example, CMMT invest in more shopping area to let out.

So far I am happy with CMMT and Sunreit. YTLreit is also interesting; their share price seems to be stuck but their yield is now almost 8-9% not bad. And their share price is less than their NAV. For political reason, I think YTL stuck at that price, but the yield is great.

Currently, I have not bought anymore. I bought mostly at the start of the year when the price was low and the yield was attractive. At the moment, not much choice. Maybe wait for bargain later.

This post has been edited by tigana: Jul 21 2014, 03:59 PM

That is a pretty high dividend yield.
How come no earnings announcement yet?

the dividend is good, if they pay that every quarter. But could be one off. Must see report.

I was wondering, now I manually track dividends received from the receipts mailed to me. Does any brokerage in Malaysia have a feature of generating a summary of dividends received for a client?
Probably not, but just asking.

what's the matter with sunway reit? On high octane fuel.

Any idea why there seem to be a lot of changes announced in CMMT management team?