N look at KLCCS, I recommended it early this month here (3 pages back) as this is the most solid (safest) Mreit. Now it's flying.. 😆

I don't mind the "gloating" . I treat it like a good inspiration story thing. But this being internet forum, I never take everything posted too seriously.

But definitrly on the wrong thread.

1 month ago would be nicer but If u want, I think can still go in. 10 year MGS yield now at 3.3%. KLCCS DY is 4.4+%. Still a decent 1+% spread. N the outlook globally is that interest rates are going down further.

My Ayam views of cuz n not a sifu. N I don't hold reits currently.

Ever? Why, if u don't mind explaining ? Is it because u are a trader?

I dont have reits currently purely because I think there are other sectors with better upside at the moment (but with higher risks tho..) , but I do invest in them at times.

The bad:
- Total dividend payout ratio is not mandatory to be more than 90% of earnings as this is only mandatory for the reits portion.
- Not as 100% secure as a full Reit structure
- more pening to analyse (read annual report.. crazy long story).

The good:
- more flexibility in terms of retain earnings n financing for future development.

My take is that @mooset to say Reits have relatively lower risk is correct.

Unlike a warrant that can go to 0 when expires out of money. Or a stock that can go bankrupt and PN-17, the Reit structure and regulations makes it "safer" and practically impossible to go to 0 value.

If compare with stocks, a shareholder of a stock owns the company, which is a legal entity. This company can go bust and creditors can take all the assets leaving shareholder nothing.

A reit holder actually owns the physical commercial property the Reit is holding. And a reit owns a diversified number of these properties. The borrowings of a reit is further capped at 50% via regulations. And regulations require adequate insurance coverage as well.

So a reits is "safer". But it doesn't mean there is no risk or little risk. Eg AmfirstvReit has lost more than 50% of its value since peak of 2010 and dividends have declined by 2/3. So, if an investor has bought in early 2010 n hold until now, he definitely won't be happy investor.

But if count his dividends since 2010, he would nearly breakeven. It's a bad investment for him, he should just put money in FD but it's not horribly bad investment. There would hv been many worse investments out there .

This post has been edited by Cubalagi: Sep 11 2019, 01:56 PM

Cut lost now, investor would lose 16% after net divvy n holding for 7 years. Definitely a bad investment.

But I want to point out that AM first is one of the worse performing counter in this sector. Compare with other sectors, I would say it is safer, if the worse ones give u 16% loss "only".

Also a bad investment decision causing a 16% loss is a survivable mistake. My own opinion of cuz..

This post has been edited by Cubalagi: Sep 11 2019, 04:43 PM

Nice this IGB Reit. Would u buy? 😆

Haha.. Just asking. As I said I don't hold any Reits now.

I think many investors were waiting for dividend ex-date to cut loss. So once ex date comes, there was a rush to door so to speak..

This post has been edited by Cubalagi: Sep 25 2019, 12:45 PM

Yes. Thats why they r selling.

Worry about declining earnings. I hear one of the property, Contraves Cyberjaya also now vacant. The company Contraves closed shop..

This post has been edited by Cubalagi: Sep 26 2019, 12:48 PM

It's like analysing 2 companies, a Reit and a prop development company if u want to study in depth.

However in case of KLCC the prop development is not aggressive n focus in KLCC area.

This post has been edited by Cubalagi: Oct 2 2019, 09:14 PM

U can put in a sell price that is higher than the best buy price and wait for people to buy at your price. Or u can also sell at the best buy price, of which the trade is done immediately.

Just like stocks.

This post has been edited by Cubalagi: Oct 13 2019, 08:35 PM

Could be the reason. I see Malaysian bond price index also has started to dip. But I don't see Malaysian bank prices go up tho..

It's the impact on Bank interest margins i.e. NIM, which then put pressure on Bank earnings. The last BNM cut was early May this year. It takes about 6 months for NIM to regularize, meaning Nov. So 3rd Q Banking results (due next month) will see the full impact in the FR. But then 4Q will look better as NIM regularized if BNM stays put. So can hope for a rebound of Bank stocks, assuming all other things being equal. If BNM cuts, then u see another 6 months of NIM falling.

U can look up Malaysia bond prices n index here:

https://www.bpam.com.my/local-market

This post has been edited by Cubalagi: Oct 25 2019, 07:08 PM

Why don't just use EBITDA as alternative?

Reit must be be steady yield producing completed commercial props.. Not props still in development stage.

Malaysia has too many talk cock ppl.

We are talking Reit here.

Firstly, Reit uses bank loans to buy their propertirs (same like individuals but they are limited by regulations to only 50% financing). Lower interest rates, means higher profits n higher dividends. Vice versa.

Secondly, many investors use Reits for steady income, same like a Bond. Reits tend to offer higher income than bond but with higher risk where the bond is govt treasury or highly rated corporate bond (very low risk). So let's say, at the moment, 10 year Govt bond gives out 3.5% interest n the Reit gives 5% interest. The 1.5% spread is to reflect the higher risk of the Reit compared to the Govt bond.

Say interest rate goes up, n say the govt 10 year bond interest goes up to 4.25%. Then the Reit at 5% is no longer attractive to an investor. Coz u are taking higher risk but rewarded not much extra. So the market will adjust to this new situation. Reit yield will hv to go up to maintain competitiveness, n for that to happen prices must fall.