There is no such thing as optimum quantity, all depends on where u are in ur investment journey n how big is ur portfolio.If u r just starting out, then it will be small. No choice. Then much later in the journey, you can even live with the dividends.

This post has been edited by Cubalagi: Nov 18 2019, 02:28 PM

In the long run, it doesn't really matter if u buy before Ex or after Ex.

The best time to buy reits I think is at the top of BNM interest rate cycle. Past 10 years that would be in early 2012, early 2016 and early 2018. But some ppl will call that timing the market and its not easy thing to do. At that point ppl will be bearish Reits as the prices would be droppung n u will hear talk of Low gets lower.. 😆

Conversely, worse time to buy reit is at the bottom of BNM interest rate cycle. At the time a lot of ppl like reits coz ppl see awesome past performance.

It's ur call. I'm not buying reits now for the reason u mentioned.

Agreed, a bit of stretch to think this policy will result in higher rental revenue from the hospitals.

Maybe buy the Healthcare provider instead, n not reits, if u think there is impact (which I also think is minimal).

This post has been edited by Cubalagi: Dec 8 2019, 05:46 PM

Buying a reit is just like buying a stock.

You first need to open a stock trading/investment account with a stockbroker/investment bank. You can open this via the banks Investment Bank outfits like Maybank, Cimb, RHB, Affin, AM, Kenanga etc. or the smaller brokers like M Securities or Rakuten.

For lowest costs, you should open a cash upfront online trading account. You don't need a remisier.

When you open a stock trading account, you also open a CDS account. A cds account is where the shares you buy are kept, which is at the Bursa Malaysia Depository. The lnvestment Banks and brokers are agents of Bursa Depository. Basically, even if your bank or broker go bankrupt, your shares are still safe. So you dont have to worry even if you open with a smaller broker which is not as strong financially as the big banks.

This post has been edited by Cubalagi: Dec 14 2019, 08:32 AM

Good for u to move out of the boring world of FD.. 😆

First choose a good reit with stable/increasing income. Then if I'm looking for higher than FD income and have to choose 2 counters, of which one is the Reit, then the other counter will be a Bank (Maybank?) rather than another Reit.

The thing is we are not sure what 2020 will bring us. If economy is better next year, (PH govt say so!) and inflation starts to tick higher, than there is a possibility of rate hike. Here bank stocks will perform better. If economy continues soft n low inflation persist, then we have a possibility of another rate cut which is good for Reits, as long as the economy doesn't go into recession.

This post has been edited by Cubalagi: Dec 27 2019, 04:49 PM

Pavreit was the first stock I bought on Bursa. Good returns. Sold it back in 2017. Should have bought again in 2018 when it fell to RM1.40 but didn't. Regret a bit.

At current valuations, still a bit expensive for me to consider entry.

I guess there are several different approaches.

I tend to have a more macro approach and I like to buy when the sector as a whole is cheap.

Having said that, things get cheap for good reasons and usually pretty valid ones. For Reit sector, this usually happen when BNM start to raise interest rates again. Reits price will fall, and people will hate Reits.

When they do, that's when I will start buying the Pavi, IGBs.. The last time this happened was in early 2018. So I will wait next time (the risk is tht it could be a long wait! )

But right now, nope. If forced to choose now, it will probably be the whacked down Reits like Arreit which give close to 8%DY or the super steady KLCCP.

This post has been edited by Cubalagi: Jan 4 2020, 11:50 PM

4.75% not bad what.. Think about it as a FD alternative.

And if u compare with IGB yield of 4.85% and Pavillion of 5.05%..are the extra yield worth it? Which Reit is stronger if economy weakens further?

Too low risk or high risk?

This post has been edited by Cubalagi: Jan 5 2020, 02:15 PM

Yes..but the issue is opportunity costs. U can buy A or B or C.. And only so much money.

The thing is the risk is not the same. It's lower.

N if u bought a year ago, your total return, incl dividends n net WHT, would be abt 6.5%. Beats ASB.

N the reason I don't hold this is that I hold a lower risk Abfmy (0800EA), which had a 1 year total return of about 11% last year.

Don't watch traded volume, watch the bid and ask volume and spread. Some are bad, some are so so and some are pretty decent. Avoid the KLCI index one. But for 0800EA, a RM100k trade at very close to NAV is no problem.

Happy to discuss at another thread, perhaps at the investor club or stock market sticky threads, if you are interested to know which one is ok.

This post has been edited by Cubalagi: Jan 6 2020, 11:45 PM

The Bursa Malaysia composite index KLCI is close to 5 year low. However the KLCI is not representative of MReit performance. There is only 1 reit (KLCC) in the 30 stocks that makes up the KLCI.

The Bursa Reit index meanwhile is still holding up quite well, but it has dropped a bit since peaking in Aug 2019. Im hoping it drop some more in 2020.

https://www.tradingview.com/symbols/MYX-REIT/

This post has been edited by Cubalagi: Jan 11 2020, 05:04 PM

1. Yes. If an index drops, it generally means the majority of the components prices have dropped. I say generally because the Index is market cap based. Means the larger reits carry more weight in the index then the smaller ones. So, you could have a case where all the small Reits go up in price but a few big ones drop, the the index will still fall.

Whether it's worth to buy.. Well that's an investment outlook and is never a straightforward decision.

2. Dividends will be based on the Reit actual profits. Under the law, a reit must distribute 90% of its profits in order to benefit from 0 corporate tax. So they always pay 90%.

This post has been edited by Cubalagi: Jan 11 2020, 06:09 PM

You will need to study the Reits property portfolio. Look at the website and annual reports for info. Read analyst reports, if there is, on prospects. Visit if you can esp if it's a shopping mall reit.

After that look at the Reit price. One thing you will discover is that Reits with good properties are trading at a premium. Reits with poor performing assets are trading at a discount.

Then it will be the tricky part.. Choosing which one..

U can look at the net assets per share which is published together with the quarterly financials.

Eg the solid Sunway Reit (5176)
Net Asset per share: RM1.49
Closing price yesterday: RM1. 84

U are paying more for the assets.

Compare with Amanah Raya Reit (5127)
Net asset per share: RM1. 34
Closing price yesterday: RM0.74

Big discount! Cheap sale.

This post has been edited by Cubalagi: Jan 13 2020, 01:31 PM

The dividend u get will already be nett tax. U don't have to pay anything extra.

They will have too, but I'm sure there will be big discounts and waivers during the MCO period. The problem will be what comes after, if the economy gets worse.

If u renting, ask la ur landlord since he is not paying installments now.

My condo already say no moratorium on management fees..