wat does NTA means?

Net tangible asset.

Their total asset worth based on their book value.

same as NAV ..... Star at 0.890

what is DPU ct? the higher the better?

Bought a few lots of Axreit @1.77

Distribution per unit, so it is better higher or lower?

bout ATRIUM 100 lot @ 0.955

Cherroy - Now i have 52000 lot @ 1.0017.

So can i assume i will receive 2.3cent distribution x 52000 = RM1196 less 15% witholding tax = RM1016.6

is my calculation correct?

This post has been edited by Neo18: Jan 31 2008, 09:43 AM

Yes.

Somebody eager to sell but not so much buyers around so price distress a bit. Basically it is a 9% yield now.

This post has been edited by cherroy: Jan 31 2008, 02:10 PM

Axis REIT to buy factory, warehouse


PETALING JAYA: Axis Real Estate Investment Trust (Axis REIT) said its trustee, OSK Trustees Bhd, has entered into sale and purchase agreements with vendors for the purchase of a single-storey detached factory with ancillary buildings and a one-storey warehouse building with a 3-storey office and guard house and ancillary buildings for a total RM27mil.

Axis said in a statement the leasehold properties were in the Pasir Gudang industrial area developed by Johor Corp.

Axis' manager, Axis REIT Managers Bhd, intends to fund the acquisitions through a recent capital raising exercise in which 50 million new units were successfully placed out.

---

Added on February 2, 2008, 11:35 amCherroy,

Pai seh, have to ask you, how do i buy the 50 million new unit? i want to buy more axis... is it right issue?

This post has been edited by Neo18: Feb 2 2008, 11:35 AM

Those are private placement, not open for public. It was issued at 1.80 just few week ago.

meaning now cheaper lor

monday i buy more!!!

My latest buy was 1.80 prior before ex-distribution.

Take your time, buying Reit don't need to rush one.

This post has been edited by cherroy: Feb 2 2008, 04:07 PM

Nowaday, people use Palm Oil Lands as "REIT" or similar to REIT. Company promoting this is Country Height. Boustead also is involving in another.

Anyone can share some information here. Thank you.

This post has been edited by SKY 1809: Feb 2 2008, 04:47 PM

Oh ok.. still learning.

Ermm, just little bit confuse here.

52000 lot here means 5,200,000 shares? which means you get 52000 lot at (5,200,000 x 1.0017 = RM 5,208,840??!!)

Just wondering the calculations is the same as buying stocks.

Correct me if i am wrong

I think what he meant here is 52 lots = 52,000 shares, coz he said distribution 2.3sen mean RM23 * 52 = RM1196.
He could have mistaken using lot as share...

Hi Cherroy,

I assume you are right because I've found out that their prices are kind of stable. It is hardly moving at all most of the time. I believe the reason might be due to their stable dividen and less plunge in their stock price (defensive stock). Investor could predict the future earnings and dividens if there is no major cycle of changes in the economies.

Well, my question is .. what could happen to the REIT if our economy have slow down to recession stage? The property industry will not able to perform due to financing problems. Investor guru have recommended REIT as part of diversifying from the equity stock markets.

But, the current economy condition in US would have doubt me about the statement above. Subprime in housing loans have bring down the economy at a whole. It might be a bargain time for the REIT companies to go all out now and make some purchases if they have strong cash-flows and finances. (Cash is the King, no doubt)

So, can you recommend on the REIT industry, their directions in term of pricing and dividen yield .. when the market start to decline.

In a economy recession time, nothing will be spared from downturn except for gov bonds or treasuries (like US 10 years bond). There is no such thing (can be exceptional due to individual company issue, just talking generally) that equities or reit can escape from a economy downturn or recession, just the degree of downturn is less if you pick up the right or defensive nature type of investment.

Reit will be affected by econonmy slowdown as property market generally is quite bad in that time, also harder to find tenants as well as rental downward pressure. However, some reit consist of properties that might be well located and won't have much rental and tenant issue even at economy slowdown time, then those type of reit are more able to withstand the economy pressure.
As reit is all about the yield, the higher yield it is, the more attractiveness to investors. You need to have a comparison between interest rate and reit yield which is one of the major factor that can decide how much the reit should be priced.

Locally, reit company won't be too cash rich as reit company need to distribute at least 90% of their earning to their shareholder each financial year. < -- which also one of the attractiveness of reit.

Reit is not as same as normal equities or shares, can't compare like to like, it is like orange and apple issue.

To analyse the reit, you need to go through their properties portfolio as buying reit is as same as buying a property then rent it out, just instead you are doing yourself, you get third party (the reit management company) to do it for you.

There is a MReit blog to summarise the local reit company regarding their yield and information which had beend posted by out forumers here. Check it out.



This post has been edited by cherroy: Feb 3 2008, 06:32 PM

ATRIUM is now 0.945!!!

what is wrong? this counter is giving distribution soon and the price keeps coming down? is there something fundamentally wrong with this counter?

It is the downside to have a low liquidity counter.

As said somebody are eager to dispose their holding but can't meet enough buyers in the market, so price will be distress and uder pressure until the sellers are clearing out.
For a stock/counter that has low liquidity, even it is cheap and attractive in term of valuation and yield, fund managers can't buy it. For the like Atrium as a reit which is not popular among retails investors, so sometimes it is a bit difficult to find enough buyers for sellers if the sellers are holding quite amount of shares one. Low liquidity stock price is highly depended on retail investor willingness and interest to buy.

For their latest financial report, it shows a 8.8% can be expected in near future.