what's up with Mydin? selling their assets then lease back.. if not mistaken, they did the same thing with Penang assets with AmFirst Reit..

U worry about Eco World bah

Who thinks MY Reit is over priced?

For example.. IGBREIT is now trading at 4.6% gross yield and PAVILION is trading at 4.5% gross yield

After 10% tax.. these will yield 4.14% NET yield and 4.05% NET yield.. not much different compared to FD rate of around 3.8%-4.0%

So why has Malaysia REITs went bonkers? Is it due to excessive speculation or panic rush to safety?  Sometimes prices can be illogical for a long period

Come Discuss! 

News of BNM might hike OPR maybe up to two times next year is more encouraging for yield.. 

And GG for flippers..     

On comparing bonds to REIT.. I see a massive oversold situation.REIT yields to compare with MGS10Y.

MGS10Y has risen from 3.8% to around 4.05% now after the BNM hike, which is a fair figure. Even if BNM hike another 0.25%, MGS10Y will be likely around 4.3%.

The previous high in MGS10Y was at 4.3% in end 2016, and that time MY REITs prices was still stubbornly high, so I did sold off most of MYREITs due to MGS spread concern is <100 bps and MYREITs continue to go up higher  . At this time there was a BIG sale on SGReits, with yields hitting 7%-9%, and I bought mostly SGREITs with the cash from MYREITs. Long term members will remember that is the time I was switching to SGReits. And it paid off handsomely  .

However now, the situation has reversed. MY REITs have instead nose dived and yields have risen by around 1%-1.5% and the MGS spread is now around 200-300 bps. However looking at SG REITs, the selldown is mostly muted, yields have risen by about 0.3%-0.5% at most, and most are still much higher than 2016 prices (I am beginning to selloff SG Reits since last year and now moving to MYREITs and divvy stock. ).

Yes US10Y has risen to record 2.8% and I think will breach 3% by mid year, unless the FED stop raising rates. And yes, I think REITs are risky now, and I am moving some from REIT stocks to dividend stocks.

My best performer is nestle..with PE 45x and DY 2% ..people still buy, does not make sense, go figure? 

But the current heavy selldown in MYREIT is not justified IMHO. I expect some rebound in next few months, when the fear has subsided and people begin to see value.