put in trading account also not bad, earn 0.5% less then FD only, and anytime ready to buy stock.

still wondering what could happen to reits when US rate hike....another panic sell meltdown? or a non-event? .....market is just too unpredictable.

Thanks for feedback.

I'm still not too comfortable while facing rate hike market sentiment risk. Our M-REITs are trading at rather moderate yield despite currency disaster. Considering Axreit, Sunreit, Pavreit and IGBreit, their net yield are ranging from 4.7%-5.3%, where the troublesome sg wang makes cmmt a little higher at 5.6%. Ringgit had felt 24% yoy, which had not priced into the yield. I am not sure what is current weight on foreign investors in M-REIT, especially Singapore investors. It used to be quite a bit for Sunreit and cmmt. If they pull out because of low return (aka depressing ringgit + moderate but not high net yield), could depress the share price.

Currently I owned a bit of cmmt and Axreit. Not dare to hold too much, only about 3% of my portfolio.

wah, 600k only 600 sqft, damn!

scott garden not bad mah, convenient region, mostly Chinese community. Lots of pubs that you like around that area.

nah....net yield, minus 10% tax, only about 5.6% for 1.28.

not always, you were lucky on this igbreit this round. i played cmmt and it fell after ex date. haha!

today it is, i think the most crowded mall in KL if not KLCC.
however, one big risk: its asset has only 1 mall (midvalley+garden).
if we look at cmmt, just 2 to 3 years ago, nobody even has any real concern on sg wang. But today, it's really looking so "out". The surrounding malls have taken over its position sharply. Anyways, it's still ok since cmmt now have 5 malls, so kind of diversifying the risk. Besides after mrt station completed in next 2 years, it's the closest mall to the big station, so people will sure go there for fast shopping.
remember pyramid once on fire? if this happens, it can kill igbreit.

however, just some thoughts to share. I also like igbreit. Excellent management and excellent asset with good yield.

This post has been edited by yok70: Aug 6 2015, 09:23 PM

just went sungai wang yesterday. it's getting more and more worrying, it's so empty all over the place.

my forecast pavreit at 1.48 only 4.8% net.
same, if 5.5% net i in. only 1 mall, very risky.

1.32 ok for me.

when property stocks having higher yield then reits.....above 6% net yield....that's 20% discount to reits.....property companies delaying their projects launching.....meaning, landbanks are still intact, just to delay projects.....ok, if malaysia future going to die, property companies will die too.....but so do reits, if economy dies.....

hmm......

i read somewhere saying we must hold the stock on "record date" which is usually 2 days after the ex date. I am confused on who is correct as there appears to have different sayings in the internet. And for us, the record date is Lodgement date?

ie:
http://finance.zacks.com/happens-sell-divi...idend-1631.html

This post has been edited by yok70: Sep 23 2015, 04:42 PM

thanks!

thanks!

don't you guys think MREIT is overpriced? majority of their net yield ranged 4.6-5.6% only (with only a few exceptions with 6-6.5%). This kind of yield reminds me of MREIT's last bear market, net yield up 20-30% there with share price dropped the same range of course.

my question is, what makes it this low net yield for current situation? Is bank rate going to move lower in near future? Is stock market about to crash therefore investors move to defensive MREIT? Is rental about to move up aggressively therefore expectation on MREIT's DPU is bullish?

I have some doubt here.

This post has been edited by yok70: Oct 14 2015, 05:55 AM

Forgive my poor English, which mislead you.

What I mean is this. Lets take PAVREIT as an example.

The attached graph is its share price since Nov 2011.
When the share price peaked at around 1.58, the was during March 2013. That period, its DPU was around 6.8 sen, meaning gross yield 4.3% and net yield 3.9%. Since then, share price dropped to 1.25 in Jan 2014. That was a 20% price dropped. In the same period of time, CMMT dropped from 1.88 to 1.39, which was a more serious 26% dropped. These is what i mean by 20-30% drop.

Today, as of Pavreit, DPU around 8.2 sen, so net yield goes 4.9%. To compare with deposit rate, the rate for Jan 2012 and Oct 2015 are 3% and 3.25%. The spread is 3.9%-3% = 0.9% and 4.9%-3.25% = 1.65%. The spread after the price dropped where it finally found a floor and rebound was when the net yield reached 4.8% (which happened in Jan 2014) with spread of 4.8%-3%(the rate in Jan 2014) = 1.8%.

Now we see, today's Pavreit has a spread of 1.65%, which is already 8% lower then the floor spread in Jan 2014.

Meaning, we are not buying with safety-margin at today's MREIT price. So, if there is anything bad happened to DPU, the share price can only move downwards. And back to my previous questions, can deposit rate lower in near future? Can rental increase instead of decrease in near future? Can these positive things happened to our REIT?

Well, in recent weeks, MREIT actually has rally about 10%-15%. And my main concern is inflation. From recent development, I can't deny I'm worried on inflation. RM is just too weak and government is spending money on wrong things. All these can add to risk of unbalanced inflation. We are already started seeing price up on many daily use things. This is the REAL inflation, the official number is pointless. When inflation hits us hard, it's gonna hit retail market, and that gonna hit property demand and rental fees.

As of today's closing price. Net yield for my watch list are as below (according to some IBs' forecast average DPU)
Axreit 4.79%
cmmt 5.46%
hektar 6.47%
igbreit 5.54%
pavreit 4.77%
sunreit 5.36%

Too low, for my taste. Only Hektar is good to buy, but it has lower grade assets.
And I not dare to touch pure office reit, since the oversupplied issue can be huge if government continues to use it as its boost on GDP to meet their "KPI".

This post has been edited by yok70: Oct 15 2015, 06:17 AM


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My major concern is 1. asset quality. 2. yield.
After picking a reit with good management and good assets, my margin of safety is mainly on the spread. A spread of 2%-2.5% (depending on the assets quality) would be nice.

This post has been edited by yok70: Oct 15 2015, 01:54 PM

In fact, I'm seriously considering S-REIT.

the average forecast DPU from the IB reports i monitored is 8 sen.

mahsing is now also in net cash position after it let go the landbank acquisition plan, with yield 6% according to IBs average forecast.

ya, that's my major concern for now, therefore still hesitate to jump in at this moment.