Just to add.

Reit distribution is based its realised profit or income, those unrealised profit like property valuation is non-distributanle.

Reit becomes more attractive.

Reit is always moving inverse with interest rate.

For reit, you look at realised income figure, not earning/profit figure.

As profit figure is easily distorted by non-cash items like revaluation as well as recently many do include defered taxation due to RPGT.

The income realised is pretty stable across the years and DPU for whole year is always at the region for 7.7x cents.

Last time, it was half yearly DPU, only recent years change to quarterly. Hope this info helps.
Cheers.

Profit figure does include surplus of revaluation property (or profit become negative due to reduction in valuation), which reit is required to do for every few years.

DPU come from realised income, not profit.

A reit can report 100 million of profit due to surplus in revaluation, but the reit doesn't have any cash to distribute the profit.
So reit can only distribute realised income they made.

Should be roughly the same at 2019, 7.75 cents.
5.6% is considered high at current interest rate environment.

Mind that BNM is expected to cut OPR further later this year. Even Fed is widely expected to have a cut this year.
Current OPR 2.75% vs 5.6% (net 5.2~5.3%), a 3% difference is considered "high".

Parkway, KDC only carry 3.x% currently, it is very difficult to find reit (be it Mreit or Sreit) that is expected to have stable DPU going forwards and has more than 4.x% yield.

Top malls survive, other secondary malls fight themselves.
So the answer is selective.

The influx of new malls doesn't means it must pull away current top malls.
Location, branding, and comfort also are factors in play.

Look at the malls ability to attract leasee is the key, although it is inter-related to crowd.
Malls makes most money from the rent paid by leasee.

There is a possibility.
Most analysts expecting a cut, while some opined it is too soon after Jan cut.

We will know this afternoon.

If a stock is darling, high liquidity previously when loved by a lot of foreign funds, then it may be the hardest hit when fear or panic hit time.

Fund managers when facing redemption or want to exist due to whatever reason, they only have one thing in their mind or what they need/mandate to do, is to sell to fund the redemption, disregard how cheap or deep the stock price is.

This is compounded when there is mismatch between buyer and seller quantity like today market, fund managers hold large sum of stock in hand need to clear, but only little buyer around, then they need to sell deeper.
Also, if a stock being downgraded on recommendation, they may need to sell as well. It is not hard to guess retailer reit may be downgraded in near term due to Covid.

Near term, it is gloomy, no doubt.

But at the same times, not every reit is the same, some are under long term lease, like industrial type.
While for the like data centre reit is not much affected.

Top premium malls reit may also be affected by MCO, but once normalise, by then those malls likely business as usual. So the effect may be short term, a quarter or up to half year or so or until the pandemic issue fade away.

At the same time, interest cut is the buffer or cushion of reit price drop..

The working from home and video conferencing affect the most on Airlines and travelling industry due to reduction in commercial travelling.
But still, it may resume to normal once pandemic is over.
WFH and video conferencing are not something new, it has been there for years, just the pandemic force people to adopt it.
Just like online shopping is available, still people like to go to malls even just for window shopping.
They co-exist.

Impact on office, yes, it does, but should be minimal. Offices are still needed due to confidential and security for company information. Let every company confidential info being stored at home PC even with cloud computing, may pose a lot of security issue.
What if the employee decided to quit time, headache to retrieve back the data also.
Certain industries can WFH, but not every industry can. WFH has its limitation. Offices nowadays are not only a place for employee to work, but a place for servers as well.

Now matter how, offices demand is still highly correlated with economy growth. So the risk is on economy growth, WFH threat should be minimal.

Malaysia office space is facing glut issue instead of facing risk of WFH.

There are simply too many offices space being built over the last few years, same with Malls.
This was highlighted before a year or two ago.

As identical to Malls, not all office will died down, just like prima malls like Midvalley, Sunway still get high demand, so does those prime office spaces.

Management of the building needs to take more effort to secure tenants by then and maintain their building in top shape.

Office space demand is tied to economy growth as well as oil price. As some office space is highly depended on O&G sector as well.

For individual investor, reit income is already taxed (witholding), so what you received is tax exempted already.

Hotel sector may not recover as quick until Covid issue is being cleared and international flight, tourism resume to normal, which seems like at least last until year end/next year or so.

Apart from industrial, logistics, data centre, tech, healthcare sector that have long term leases, reit at short term is facing a lot of challenge in term of negative revision, renewal lease and potential defaulting issue as well.

Positive side, OPR is projected heading down further, and potential cheaper borrowing cost for refinancing in a much long term future. But reit needs to show the ability for lease renewal or maintain the lease without much negative revision.

Yes, reit price always follow DPU.

I remembered once atrium also dropped to around RM0.70 level, when its DPU dropped due to lease non-renewal issue that lead to lower income, but after manage to lease out, and DPU recover, so does its share price.

Reit investors need to follow closely the DPU number.

Not much an issue.

Reit performance is hinged on ability to generate income, aka ability to maintain lease even during difficulty time.

Yes, drop a little more below Rm7.00 then look bargain.

The recent selldown may more and less due to exclusion of KLCI, that some index fund managers may dispose some stake, as well as recent news of Petronas pared a small stake at Rm7.12


You can't compare, it is apple vs orange.

Reit is more a passive business nature, aka have a property and collecting rent only, while bank is actively doing business by giving out loan, financial services etc.

Risk exposure also different between them.

Also,
Suria KLCC, Menara Maxis, Mandarin Oriental Hotel.

Have small position on it after it acquired Pg property.

Online shopping won't entire replace brick and mortar shopping.

Both will co-exist,

Malls needs to restructure to something online won't able to give, typically dining experience, cinemas, leisure activities, certain clothing buying experience.

But for secondary malls, it is going to be tough, so need to be selective, preferably on top premium malls that hard to be replaced and always consumers prefer destination.

As far as I know that since I start invested in Reit decade ago, had not seen such an occurrence before.

Reit is collecting rent and pay 90% to its shareholders, if no rental income, then no pay.