Poor EPS, that's why drop so much.

CMMT is heading this way as well.

Gross yield about near to 7%.

Already ride the bus...

Hope the destination is not going to Holland.

Reit is not running a business, it doesn't need much cash.

The basic of reit is renting/leasing the property, not running a business.
Why reit need to keep cash of the rental collected?

I think this is more about the management fee by the managing agent.

Eg.
Reit engage management company, which incur 1 mil as management fee.

As in ordinary sense, a 1 mil tax invoice will be issued by the manager to the reit, which need to incur GST.
So total payable by the reit to the manager is 1 mil + 6% GST.

But now, reit substitute it with issuance of new unit instead of payment in cash form.

So in the issuance new unit as payment, GST should be incurred as well, if not (if issuance new unit instead of payment in cash as a form of manager fee), there is a loop hole to "escape" the GST.

In term of tax perspective, it should be no difference.

But this should not be affecting on shareholders in term of DPU or earning of reit.

It doesn't have any relationship between GST and public shareholding.

Right issue to raise capital is not subjected to GST.
Just like IPO, there is no GST.

But if you use the new issuance unit as a form of payment, then yes GST still applied.
This is to prevent a loop hole in GST that can be exploited.

Yes, that's true.

I don't know what is issue raised behind of the statement, that's why I guess it is about the issuance of unit to pay for manager fee.

As in ordinary sense on issuance new unit for capital, it doesn't attract GST.

So this need to be sort out between Reit manager and Custom.
As in term of tax perspective, it must attract GST if the issuance of new unit as a form of payment, which is fair stand by Custom pov.

We need to look at the location of the mall.

Just like despite so many new malls coming out in KV, Midvalley still remains as one of top preferred mall by consumer.

For Penang,
Currently 2 area are having the most crowd, one is at northern part of penang, aka Gurney area (Gurney plaza and Paragon mall), another one at Southern around Queensbay mall.

MQreit's Penang Tesco is leased out for 20+ years already, and just beside Penang bridge, a strategic location, not much a worry on both lease and property value.

Err.... in theory yes, non-comply any listing rules, potential delisting.

But public shareholding is not something difficult to sort out actually, somemore the spread just a few % lacking.
So if KLSE does give ultimate to comply, it should be easily sorted out by the company.

Don't need.

The buyer buy your shares after ex-date won't able to meet the dateline of lodgement data, so rest assure you will get the dividend if you sell after the ex-date.

You need to know why there is a lodgement date.
When you buy share today, the share is not credited into your CDS immediately, it will after about 2 business day, hence lodgement date is always differ with ex-date 2 days.
So whoever buy your share after ex-date will miss the lodgement date, so when share registrar see their book time, you still in the list of shareholders.

CMMT currently has only 1 mall in Penang, that's Gurney Plaza.

Queensbay Malll is under CMMT (or yet, although being rumoured long time to be injected)

Most important
- always crowded, and parking always 100% full. Even build a parking lot also can earn good money.

I think this mall fengshui is really good, as before that nobody can expect this mall as crowded as currently is.

Traffic wise actually is not that good, acsess to LRT need to have a long walk.
By car, also need to go through big circle.
First time I went time, circle 2 round before find a way to go in. Out time also loss, don't know which way to go.
The traffic there is like a maze for newcomer.

Can build car park block to make money as well...
Easier then office space.

If got 6% FD, I sell all the reit.

Sg. Wang problem is CMMT doesn't own the mall 100%.

May be can change mall to office space, or redevelop into luxury hotel, you can't go wrong too much with having a prime location property.

If situated at wrong location, that "growing grass" one, then it is a big worry.

So keep on waiting and see who can wait longer...

Give some sweeties to private owner, if re-develop, give x number of CMMT shares.

Last time, when reit was new time, yield was about 7~8%.

Reit yield never was 20~30% before.
Even when Axreit dropped to Rm1 time during the panic global financial crisis 2008 (whereby at that time, US property price crashed and a few reit there burst), its DPU was about 12~13 cents.

Qcapital was around RM0.8x, with DPU around 8 cents
Ytlreit was around Rm0.7x, DPU 6~7 cents
Atrium lowest was RM0.6x, DPU was about 6~8 cents.

Never there was 20% yield.

1. OPR likely to be unchanged with economy slowing down.

2. Inflationary and inflation expectation, people like hard asset during inflationary environment.

3. Reit over the history has able to proof that they are able to provide stable yield, and become more "popular" as compared to its infancy stage 6-8 years ago.

4. Worldwide interest rate is low across. Even Aud and NZD previously were known at high yield currency, also suffer low interest rate. So comparatively, 6~7% is considered at high side, even can do carry trade.

Stable yield at 8% or 10%, with potential room for appreciation in asset valuation due to upwards bias in property price?
It is too attractive already.

They need to have some leverage level in order to achieve 6~7% yield.

Reit own the property, how can it is not an hard asset.
Eg.
Reit has 100 mil worth of property, they can borrow until 50% or 50 mil to leverage it.
Technically, you can say the other 50% is playing between the interest rate and rental rate and reap profit from it.
But the origin of 100 mil is hard asset.

Reit borrowing mostly are at comfortable level between 30~40%.

If you look from personal front as compared to reit.

A person earn 10K per month but get a house loan of 500K, the leverage ratio is even higher.

The A people say they have invested in a hard asset, and can get rental profit. No one dispute it is a hard asset.
But for reit to borrow less than 50%, and fork out hard cold cash to buy the 100 mil property, then you say reit is not investing in hard asset..., how can?