which indices are dropping?? examples?

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/

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%.

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.

Managed to grab some igbreit at 1.62 although should have been able to grab at 1.6 easily today.

While sunreit has been quite depressed.

Still hopeful on general retail as vaccine to arrive 2021.

I think your calculations are correct. Just make sure to add up the other 0.0032 cents per unit non-taxable portion and the 0.0083 cents per unit * 90% taxable portion (10% WHT) in your cash dividend part.

As for the failure to go below your holding price, it might be because your holding price is lower than 1.88. You may have bought earlier at a low price, so even after the discount of 10% VWAP, you still end up increasing your holding price.

Buying more may not necessarily reduce your holding price, especially if the REIT is doing well in share price performance, buying more will end up increasing your holding price instead.



Looking at this graph, if you buy more after early March 2018, it is very likely that your holding price is on an upward trend.

Ya, I saw the picture, it's attached in your last post.

Basically the same distribution is made for both investor who opt for reinvestment and do not opt for investment, the amount is the same:

Non-taxable: 0.0142 cents per unit
taxable: 0.0083 cents per unit

The only catch is that for those who choose to reinvest, out of the 0.0142 cents per unit non-taxable portion, Axis REIT "extracted" 0.0110 cents per unit for reinvestment, so you have 2 components for non-taxable dividend in the reinvestment case, but they are the same as before because the leftover 0.0032 cents per unit is distributed too.

To answer your 2 questions:

1. Yes but you stated the amounts in the opposite, non-taxable is 0.0142 cents per unit, taxable is 0.083 cents per unit; this is the quoted rate for those who do not wish to reinvest their dividends. For case 1, you receive the distributions,

a. 0.0142 center per unit non-taxable
b. 0.00083 cents per unit taxable portion,

Both a and b in cash.

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2. As stated before, 3 components now, 2 non-taxable, 1 taxable, for those who wish to reinvest.

The 2 non-taxable ones are:

a. 0.0110 cents per unit for reinvestment at 1.88 MYR per unit
b. 0.0032 cents per unit for distribution

a+b = 0.0142 cents per unit, exactly the same as the case when you choose not to reinvest dividends.

The taxable one is:

a. 0.0083 cents per unit, no change from the first case (1) above.

The 0.0110 cents per unit is now used to buy the 2 new shares (for your case, assuming originally 503 units) with the leftover distributed as cash similar to case 2a above. And they are all non-taxable.

So, for case 2, you receive:

a. 2 new shares (priced at 1.88 MYR each),
b. 0.0032 cents per unit non-taxable distributions
c. Leftover non-taxable distributions from the truncated shares (2.94-2) shares
d. 0.0083 cents per units taxable distributions.

a are shares, b,c and d are all in cash

Just realized that I made a mistake in my earlier post, it should be in units of RM rather than cents, I have changed that.

Yes, your calculation is correct overall, considering the non-taxable part. You forgot the taxable part though, I think. 

Non-taxable: 0.0032 * 503 (= 1.6096) + (503*0.011 - 2*1.88 = 1.773) = RM 3.3826 (which is the "Allow to get cash dividend" column you found in the last row of the spreadsheet)

Taxable: 0.0083 * 503 * 0.9 = RM 3.75741 (times 90% because of 10% WHT)

Total cash from both parts would be RM 7.14.

This is a very good question. I have done some further studies on this.

https://www.axis-reit.com.my/reits-faq.php

Kindly refer to item 5 and 6.



From item 6, you can clearly see that, with the assumption of 10k units, total gross distribution is RM 926 of which RM 306 is non-taxable. The taxable portion is thus RM 620.

With a WHT of 10%, the net distribution paid out (the cash one would receive) is 306 + 620*0.9 = 864, which agrees with the number quoted in the page.

So, coming back to your question, I think I got my numbers right. The declared taxable distribution of RM 0.0083 per unit has to multiply by 90% (since WHT is 10%), times 503 units which you hold, and you get the taxed distribution of RM 3.75741.

And no, "taxable" here means distributions that can be taxed because they are not derived from utilisation of capital allowances, industrial building allowances and tax exempt profit income, so by law they are liable to tax. From this "taxable" distribution, Axis REIT will deduct 10% and pay that to the Inland Revenue Board of Malaysia (IRB, better known as LHDN). "Taxable" does not mean you won't get the money stated. You misunderstood something there.

And thus you should take into account the taxable portion in your cash dividend calculation. It's real cash that you will get, just that you minus 10% WHT off the stated figure. 

*I don't invest in M-REITs, I only invest in S-REITs, but you inadvertently taught me something today. Thanks.

IGB Commercial reit coming soon, any take?

that`s the offset from its commercial property, off IGBB asset book.

Yes, that`s what everyone perspective is pointing to.

Both prospectus and IPO timetable can be found on Bursa's company announcement page.

Look for IGB Commercial REIT.

https://www.bursamalaysia.com/market_information/announcements/company_announcement?keyword=&cat=&sub_type=&company=5299&mkt=&alph=&sec=&subsec=&dt_ht=&dt_lt=#/?category=all
A pureplay office REIT.

Some info that can be found inside the prospectus :

My humble opinion. Office space is extremely oversupplied even before covid. Now with many, especially large corps, realising they can wfh, and the new mega skyscrapers 118 and trx throwing, its no wonder igb is listing their offices...