Well... they did mentioned that their bottom line would be hit because of the CEVA issue.

bousted reit is the 2nd syariah compliant...right now theres no 3rd one..

hw try reading Hektar... it seems like they are "qualified" for it too... hw they r not, because they did not apply.

Amfirst is giving 4.48 sens.

~ Financial year end net profit 179.071 million (increased 471.87%) - wow!

This one can buy?

i am reading at its financial report now.

http://announcements.bursamalaysia.com/EDM...F6?OpenDocument

I think if buy must be for VERY LONG term. The price lowest in Nov-Dec timeframe at 0.70, now almost like the peak already. I think I better stay out of this REIT

emm, i try to compare side by side Amfirst & Axreit Q1 report.

- Number of properties owned by Axreit ~ 19; while Amfirst only has 6
- Amfirst's gearings / borrowing is higher than Axreit's
- Amfirst DPU is based on semi-quarter, while Axreit is on every quarters
- Total income of Amfirst is higher than Axreit, hmmm?
- what does NAV means?

Amfirst's tenants are:-
Bangunan AmBank, AGLC, Menara Ambank, Menara Merais, Kelana Brem, Summit USJ

I haven compare between these two dividend But regarding the frequency of dividends payment. if the company have 40 sen to distribute to shareholder annually for example... if it distribute 1 time to shareholder compare to 4 times... which one is more cost saving? If i distribute 4 times... i need to issue 4 times of cheque..

NAV = NET ASSET VALUE FOR THEIR PROPERTIES tru valuation... Depends on which valuer they using....different value valuated differently....So does not 100% accurate just some guidelines for you that how much the properties worth....

NAV =Net asset Value
Its the value of the Assets(properties in this case) per share =)

Higher NAV is better.. of course we need to see the gearing of the company too...
high gearing...<< bad..

This post has been edited by chanleonzen: May 9 2009, 07:26 AM

It is unsustainable gearing that is bad... so as an investor you have to see whether the gearing is sustainable or not...Have to look into EPS , balance sheet and D/E ratio.... A good balance sheet must balance between debts and cash holding....No debts also not good which means your company does not expand....

Well, I say high gearing ratio is bad as the company doesn't have the potential to grow and the price of the share would have reflected its potential future earnings.
IMO, i would prefer a lower gearing, cause there is potential to acquire new properties without the company issuing new share, which dilutes the EPS and NAV.
Debt, Depends if it is a good bad of bad debt of course. usually REITs dont have (have low) debt? correct me if i'm wrong..

Don't look at the total income alone. Some profit/gain is come from properties revaluation, not actual rental income.
Actual income is 4.xx cents.

One of advantage of Amfirst compared to Axreit is that its parent company AMMB is the major tenant which they won't scare of non-renewal of lease.
This is also a disadvantage, because it is conflict of interest, also its relied solely on its parent company, not actual market demand.

NAV - Properties worth based on lastest valuation (which needs to revised every three years)

Pana,

The net profit they reported is inclusive of a property revaluation which caused the increase of their values by RM 141.534 million. Of their net profit reported:-

- Only RM 37.537 million is their realised profit from rental income
- The rest of RM 141.534 million is unrealised profit caused by increase in valuation (which according to REIT regulation, they must declare as unrealised profit NOT distributable to shareholders)

Which means, AMFRIST needs to only distribute at least 90% of their realised profit. Therefore you can see their distribution at RM 37.529 million (very close to 100%).

For FY2010, there will be 43.7% of its leases expiring, out of which 10.63% comprise of Summit retail spaces. I believe Summit is the only property which relies on other tenants, as most of its properties are occupied by Ambank's subsidiaries. Even if the rental reversion is to be negative, it would not affect AMFIRST's bottomline a lot.

AMFIRST price has been very stable for the whole year through (0.8x), while its NAV has been upgraded to 1.32 from 1.00. This is a very good sign as the margin of safety has increased. Based on its price of 0.92 yesterday, the total net yield for the year was 8.4%. As of now, I still don't know if its earnings will be affected badly for FY2010 because it will depend on the rental reversions.

This post has been edited by Jordy: May 9 2009, 08:13 PM

Phew, I read this thread from page one since this morning and just manage to complete. First I must really say thank you for everyone who chip in so much of useful information, this is really like an encyclopedia. And I can say REITS is really very attractive to invest in (for a scaredy kat like me), I think instead of buying another apartment I rather invest in reits, thanks pana for the tip.

Only thing I still dun fully understand is the lock down you guys mention.

thanks fellow seniors for the input. digesting digesting.

morrish, together we learn.

This post has been edited by moorish: May 9 2009, 09:33 PM

Why most REIT counter move so slow one?

Because they are not as same as ordinary share.

Having reit is as same as having a property and rent it out.

Its value is fully tied to its properties value and its net rental income. No other thing else.

Understanding the business of REIT counters first is good for you. People invest in REITs mostly for income and not for profit. As what cherroy mentioned, their businesses deal in rental of properties and not trading of properties.

you cannot expect one counter always gv great div and huge capital gain
overall reits can gv good div
actually the price of reits can up alot and drop alot coz low vol just ppl dont wanna sell coz good div and they rather hold on it