Reit in Malaysia is a bit illiquid and less being traded. You only see price going down in major way when there are some major players divest or invest in it, just like previous Axreit slide all the way from 1.40 level to 1.00. Once the selling finish, it stablise back, until got new major development and new big players buy or sell. Otherwise, it just hovering here and there with low volume and potential surge when they are going to distribute the DPU.

I believe the REITs in Malaysia stagnant because there isn't much growth in their revenues or 'landbank'. Since their revenues are quite predictable as well as their DPUs, there isn't much room for them to be speculated. You could say this is the most efficient market in KLSE at the moment. It's like everyone knows how much it will earn and how much dividend it will give, so there isn't any point chasing up the price unless there is wide talk or rumours of M&A.

Upside for reit is rather limited can capped by its NAV.

Reit is more a dividend yield play only. If one intends to look for major capital appreciation side, then reit is not good place to be.

At the moment this logic seems to be true. But the environment could change, i.e legislation could allow a REIT to also be a developer...or be involved in some other property related business...this might affect the capital appreciation or depreciation probability of the REIT.

Seeing how the current global financial architecture looks shaky, perhaps some new development will affect REEITS positively or negatively.

But for now, I agree that REIT is a rather steady dividend play.

I disagree to change the legislation allow reit to be a developer, as if it does, then they are no different than ordinary property company already. I would dump reit because of it.
Their share price might rise because of it, but I don't like it at all.

What we want from reit is dividend play, somehow like owning a property and rent it out. If they are involving as developer, then its risk no longer the same and become higher already, although capital appreciation potential become higher.
If involving as developer then they need to conserve cash which by then they no longer distributing their rental income at 90% level.
I like reit because they will distribute at least 90% of the earning/rental income in order for them to get a tax exemption.

After dumping my axreit it seems no chance for me to buy back again

refer to ur 1st rule, 忍

With FD rate is heading 1.5%, (BNM is expected to cut until 1.5%), this factor alone is enough to support dividend stocks.

axreit, thinking of going in at around 1.27/28 next week.

It ady at 1.28 today

it was there but no enough seller ... i dont want partial match.

Haha, how many lots are you looking to buy this time? I believe you're looking at 300 lots?

What you guys think of the coming mini-budget? Would there be any stimulus which could boost property demand here? Do you think the mini-budget could stir up interest in REITs? Hoping to buy in before March 10 just in case they announced some goodies for REITs

Atrium yield will be dropping in the coming Q due to Ceva (its tenant) has ceased leasing one of its warehouse. Company need to find the new tenant in order to maintain the previous yield/DPU.

So, now is a good time to average down or buy other reits? Please advise, thank you.

This post has been edited by espree: Mar 1 2009, 03:41 PM

Difficult to say, if Atrium able to find new tenant, then its yield is pretty good though around 12%.
If not, then yield probably will drop to around 6~8%.

That's why its price can't go up (or sink from 0.80 level to now 0.6x) despite having high yield previously because lease is expiring.

If they are getting new reputable and long term tenant with good price, then its price might be boosted by the news.

This post has been edited by cherroy: Mar 1 2009, 05:52 PM

Thank you cherroy for the info. I guess I just have to wait for the good news.

Why wait for the good news? Even if the yield falls to 7%, it's still much better than FD. When it rebounds after they successfully found a new tenant, then you will be earning a lot more due to appreciation.

just got my peasant dividend from axreit

DHL is going to expire soon on 31 Dec, 2009. I worry might drop further. Worth to average mah? or safer bets should be axreits or stareits, right? Please advise, thank you.

yeah got it also yest

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Added on March 3, 2009, 9:06 pmneo should happier than we do

This post has been edited by mo_meng: Mar 3 2009, 09:06 PM