I understand the difference.

But I have to understand the better return I can get back.

This yrs is best time to know, go through good and bad. Financial or reit. Div and stock ROE.

👀👀. Thanks for insight 😊

Finally bought KLCC today @7.15.

Ooo. Nice

Why KLCC where later people will put their attention to TRX?

Dont think that will happen.

It's called KL City Centre (KLCC) not for nothing.

Klccs owns 100 acres of the most prime property in the country. For me if want to buy property, that will be the place.

The problem is always the price. Historically, it's always been trading at 1.1-1.2 PB. Now it's below one. Good time to get some.

Got some KLCC today. Hope it will bounce back soon

KLCC vs MQREIT, which one better as both are office centric REIT?

It's a different risk return profile. Klcc being a safer lower risk option, which also means lower potential upside. I'm buying it as a bond alternative.

Bought KLCC at 7.15, hopefully this will be good in 2021.

IF the pendemic is over, the economy rebounds strongly and BNM keeps interest low.. then I believe KLCC will do really well.

With oversupplies of office in KL + post pandemic, I think most office operator might lost alot of customer.
With the increase of empty offices, price will drop. Company will hunt for the best price in KL area. So basically this will affect the earnings for offices.

If prices of office assets drop,... this will cause the leverage ratio of REITs to increase,.. causing them to 'move nearer' to the 45% leverage limit for a REIT. It becomes dangerous to invest into Office REITs then.

Has there been any Msian REIT which has experienced this before ? What did the regulators do when a REIT approaches the 45% gearing limit ?

I have seen what MAS does, but how abt in Msia ?

Petronas rents nearly 75% of klcc office space. Last month, Petronas renewed the lease to 2041/42. Thereafter, earlier this month, Petronas sold a big block of their Klccs shares (reportedly to pay government dividends) to ASB. I dont think the timing of lease renewal was a coincidence. Likely something insisted upon by ASB.


Not that I'm aware of. Maybe because we have fewer Reits n Mreits tend to have low leverage but now with the pendemic maybe this will change.

KLCCS, being the strongest, still has less than 20% gearing.

This post has been edited by Cubalagi: Dec 29 2020, 10:32 PM

SC has increase MReits gearing from 50% to 60%

https://www.theedgemarkets.com/article/sc-g...low-flexibility

This post has been edited by felixmask: Dec 30 2020, 08:06 AM

Wow. KLCC has almost 75% of rental locked in for 20 years. Awesome

From the annual report, Petronas rents the whole of both towers, no? The tenant is solely Petrolium Nasional. Mind sharing where you get the info about 75% from?

As for the "transfer to ASB" thing, in the end, they are using our money to finance themselves... then money flows back to us. Sounds like some sort of circular economy.

Tq bros,...

I figured since MREITs do not go out into the world to buy assets, this is the reason for their low gearing. Could be that the pandemic could be changing this too,... that's why SC has incaresd the leverage limit to 60%,... as bro felix highlighted,...

This is useful info,... MAS in SG increased from 45% to 50% for,.. like 2 years ? And SC increased from 50% to 60%. Hmm,... still higher than MAS'.

There is also Tower 3 and Exxon Mobil building. Could be that?

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