Yes, that's true.

It depends on the property location.
Some strategic location never have hard time to fetch a buyer, it is matter of price only. But with inflation looming and constructin materials sky-rocketing, at near term, yes, property surely will under consolidation phase but in strategic location, the more I can see is about 10% drop due to lesser demand as inflation is the factor that maintain the price. Having said that, this only applied on those strategic location properties, in some remote area, different story.

But if construction materials' price dropping severely, then potential more new properties being built might drag down the market price of generally, but at near term, highly unlikely.

For sure, property sector will under go consolidation phase after last few years of good time.

Atrium has a nice run up from the 0.75 level.

Now attention turn to Axreit, quite tempting especially semi annual distribution of 7%+ is highly likely next week or so.

Edit 2 targets now for me on reits side, Axreit and Qcapital.

This post has been edited by cherroy: Jul 25 2008, 03:42 PM

Bought Axreit 1.60.

Afternoon session all only done 1.60, so settled for 1.60. There is a big Q of 1,000+ on 1.59.

Drop further buy again.

Personally, I never care much how much can I average down. I care how much they are giving me every year in term of dividend yield/distribution in term of yield.
I never look at my average cost, I treat every purchse individually. Just like I bought 10K of share of Axreit at 1.60, then this 10K cost is 1.60, while another 10K was bought at 1.70 then it is 1.70. It is much easier. Just my perference.

Reach 2.00 or 2.+ (hopefully) then all sell together in longer future time. Even sell at cost, also gain because it is much better than putting in FD as every year take more than 7% already. That's how I treat them.

I have this kind of mindset because I set up or invest in those stocks in order to have passive income as compared money put in FD, while capital appreciation is almost impossible to be predicted when it will happen or not, when they do go up, I treat is as bonus. The other way round than you.

That's why I look for those fundamental sound that can deliver consistently throughout years. This is why also I find very hard to buy Airasia (zero dividend) although interested in it because of low price recently. Also historical proves that dividend stocks always outshine growth stock over the long term generally (although not all), mainly because growth stocks tend to tumble quite heavily when economy perform poorly time.

But we have the same aim, making more money. Haha.

Those extra profit come from properties revaluation. Under the reits listing rules, reit properties can be revalued for every 3 years in order to better reflect the properties price and reit situation.

So properties price is higher than 3 years ago, then the incremental in book value of the properties will be registered under exceptional profit.

But to see the actual situation and yield condition of the reit, look for the operating profit or net rental income.

This post has been edited by cherroy: Jul 30 2008, 04:58 PM

Last week my 1.60 bought on AXreit can buy me a Tai Thong dinner already.

Yup, if annualised distribution is 14.8. You calculation basically right.

It has proposed a private placement of 120 million new share.

The money raised will be used to reduce the borrowing and possible newer acquistion. New acquisition might lead to higher earning ahead to minimise the dilution while making it more diversify and more sizeable to attract instituitional investors particularly foreign investors. In Reits, size does matter to attract instituition investors and foreign fund managers.
At time being, Malaysia reits still consider very small in size compared to overseas. You need some reit size that at least more than 1 billions and above to attract large instituitional investors and foreign fund managers.

In the view of reduce borrowing, it is good for the company if future interest rate is going to rise. But dilution might be a disadvantage for the existing shareholders. But if those private placement is being placed out at higher price (buyers willing to take at high price) that it can be view as positive factor as well.
I think they will reduce the borrowing in order to have more spare capacity in term of gearing for future new acquisiton. My opinon only.

Normally, private placement will be placed at an average market price.

So only time will tell how it will affect and the dilution situation. Previously the 50 millions private placement is not reducing or diluting the existing shareholder yield instead it increased the earning from the new acquisition made.

In the future, monitor how the dilution or precisely the EPS or distribution per share, if the yield is still staying at roughly 7 or 7% above, while FD rate stay stagnant then I find not much reason to sell it, but if dilution problem occur resulted lower EPS then might consider to sell it if FD rate is going to rise (which I highly doubt it would be more than 0.5%)

No, private placement mean private already mah.

This post has been edited by cherroy: Aug 5 2008, 08:18 PM

Yes you are right. If the company management is doing like as you said, then they are not doing a good job at all.

I had it also.

Its yield is pretty attractive also around 7-8%. But downside is its relied solely on it major shareholder AMBank for the tenant which is also secure tenant. Got pros and cons for this kind of major shareholder as tenant as it might have contradict interest.

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Added on August 6, 2008, 4:27 pmMore acquisition ahead expected from Axreit.

http://biz.thestar.com.my/news/story.asp?f...91&sec=business

This post has been edited by cherroy: Aug 6 2008, 04:27 PM

Amfirst posted a quite good result, 2.24 cents for the lastest Q.

Ex-distribution mah, deduct 4 cents out lor.

That's bullshit, and unprofessional. No offence. Next time ask lyn forumers is much better. Just joking.

I had already got it for the financial year ended 31/3/08 one.
This 30/9 will be another semi-annual.

Every reit has to distribute at least 90% of the earning. So surely got distributin if making money.

Witholding tax for local has been reduced from 15% to 10%, while foreigner from 20% to 10%, indeed a good news for reit.

It is witholding tax, it is pre-deducted aka you cheque received is net amount already.

To be my knowledge, no further tax anymore as we had paid the 15% witholding tax. Unless the reit didn't distribute the 90% of their income.

This site has clear explaination on it. Courtesy of PriceWaterHouseCooper.
http://www.pwc.com/extweb/manissue.nsf/Doc...A2571E0002B4B96