Wonder what Quill Capita up to now. They are paying 1.88c distribution now, which is not the norm. http://announcements.bursamalaysia.com/EDM...00?OpenDocument Maybe, try to attract investors by paying quarterly instead of half yearly now?

Ah... That's why you are the reit specialist master around! TQ

From an investment perspective at current price of RM1.13. Upside potential RM1.30+ fully tenanted in best of market sentiment. Downside prospect ?

Total 4 properties.

1) Atrium Puchong vacant. DHL moved to own newly built mega facilities in SA.

2) Atrium SA2 (Ceva). 4 months lease expiring next month Sept 2015. REIT with such short lease means what? Customer leaving for other places soon ?

3) Atrium SA1 (DHL) lease expiring end 2016. Will DHL renew lease or move to own facilities in SA neaby like DHL puchong?

4) Atrium USJ the smallest is tenanted with 3 different customers, lease expiring between end 2015 - 2017.

Is leasing industrial size properties as easy/simple as renting a terrace house or apartment ?

Going to be an epic challenge in 2017 for Atrium if they are left with only Atrium USJ tenanted and 3 other non-performing properties to service interest on loans.

Means from hereon, downside prospect can worsen till 2017 when it,s trading at <RM0.30 ? All the DPU you get cannot cover the hugh capital loss.

Good thing Atrium don,t have institutional investors, else they would have been sold down long ago. If I still have Atrium shares, I would take the opportunity to sell next week to some blur retail investors who don,t bother to do any research beyond reading the Bursa announcements.

Er, in 2008/9 it traded about RM0.60 fully tenanted with just a potential risk on Atrium SA2. Nothing academic here, just illogical market sentiment which is part and parcel of the market. Inversely, how much would it have traded if all properties were vacant except one?

2017 is also about whence the next major stock market cyclical correction can occur - about every decade (give or take a couple of years).

It takes time to liquidate all the properties - meanwhile your $$ is locked with no income when opportunities abound elsewhere( stable DPU should be the only consideration for REIT ).

That's why the ? in my sentence.

P.S. would you buy at RM0.90 without DPU ?

This post has been edited by bullchips: Aug 9 2015, 03:40 PM

Quite close to my agak-agak RM0.30.

Some realistic facts trivia.

2008/2009 trading about RM0.60 without one tenant.
2015 trading about RM1.13 without one tenant.

About RM0.50 difference for a similar situation that cannot be explained based purely on the academics. However, inject a good dose of "fuzzy logic" & we start to see the picture . . .

Cherroy have his own logic with his RM0.40/0.50. I am more kiasu at RM0.30, you have your own logic . . .

Wishing the best to all however they want to spend their money.