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 REIT, real estate investment...

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Jordy
post Jun 29 2009, 04:12 AM

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QUOTE(simplesmile @ Jun 27 2009, 05:38 PM)
I've been thinking... if REITs can pay out a high portion of their earnings, then why can't KLCCP also do the same? KLCCP dividend's yield is so pathetic. Does any1 know why?
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Buying REITs is just like you owning a property and rent it out, because that is their business model. KLCCP as assambuffet mentioned, is a property developer. They do not buy a property and hold them for passive income. They need the cashflow for their future development projects.
Jordy
post Jul 10 2009, 02:02 PM

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QUOTE(wankongyew @ Jul 10 2009, 11:37 AM)
Ok, the way things are going, there's no point in dumping more money in REITs. I should probably wait until after dividend time. But I'm wondering, what do you guys do with your ready cash while you're waiting for opportunities to open up? I have, like, nearly 50k at the moment in reserve. What is a good short term, high liquidity thing to put them in for one or two months? Just keep them in ordinary savings accounts?
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wankongyew,

For short-term purposes, go for overnight, high beta trading (commodities, forex, Dow Jones Financial stocks).

Personally I would not stick to short-term returns if I have the cash as they're usually unsustainable. I would still continue growing my REIT portfolio as they provide me sustainable and high yields, which in turn could be used as rolling cash for my business.
Jordy
post Jul 10 2009, 08:03 PM

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QUOTE(wankongyew @ Jul 10 2009, 04:37 PM)
Uh, what does that mean? That you'd buy more REITs even if the price goes up?
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wankongyew,

That is correct. Besides, most REITs are still trading below their NAV. As long as there's still a 10% margin, I will keep buying.
Jordy
post Jul 13 2009, 05:34 PM

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QUOTE(ts1 @ Jul 13 2009, 09:43 AM)
tempted to sell if go beyond 1.60  tongue.gif
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At current price @ 1.58, I am already making 20%. If I sell now that is equivalent to 2 full years of dividends. Not to mention I have made away with 29% since December 2008. Selling now means I am making almost 5 years worth of dividends, in only 7 months! biggrin.gif

This post has been edited by Jordy: Jul 13 2009, 05:35 PM
Jordy
post Jul 14 2009, 03:16 PM

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A good run for AXREIT, but unfortunately very small volume. Looks like more people are keeping their stocks, which is a good sign smile.gif

Looking for a buying opportunity after ex-dividend.
Jordy
post Jul 15 2009, 11:33 PM

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QUOTE(debbieyss @ Jul 15 2009, 10:36 PM)
i don't want to keep paying money for margin call......
if want to invest, just put an adequate lum sum and leave it aside. I just want the dividend only
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debbieyss,

As what Cherroy mentioned, there is NO margin call like in Futures. You buy a stock, you pay after 3 days in full, and the stock is yours to keep forever (or until you sell). And of course, you will need to open a separate CDS account solely for shares.
Jordy
post Jul 16 2009, 11:17 PM

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QUOTE(panasonic88 @ Jul 16 2009, 10:36 PM)
leaving a note here, today i bought Arreit. hopefully could get some banana in return icon_rolleyes.gif
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panasonic88,

If you don't mind, please share your reason for buying ARREIT smile.gif
Jordy
post Jul 17 2009, 12:16 PM

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QUOTE(wankongyew @ Jul 17 2009, 09:17 AM)
Didn't see anyone post this for UOA. What, nobody buys this one?

UOA REAL ESTATE INVESTMENT TRUST 
Date Announced : 15/07/2009 
EX-date: 30/07/2009
Entitlement date: 03/08/2009
Entitlement subject: Income Distribution
Entitlement description: INTERIM INCOME DISTRIBUTION OF 5.82 SEN COMPRISING 4.88 SEN TAXABLE INCOME AND 0.94 SEN TAX EXEMPT INCOME FOR THE PERIOD ENDED 30 JUNE 2009.
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UOAREIT is a little over-priced at the moment in my opinion. I have stated my TP at 1.00 or below some few months back smile.gif

QUOTE(panasonic88 @ Jul 17 2009, 09:52 AM)
tickets to holland  icon_idea.gif

the reason why i choose Arreits

- enjoying instant DPU (hopefully there is, pending announcement)
- price is hovering at 0.72-0.74, room to go down is limited
- price appreciation would be a bonus for me

Quoted from Amanah Raya Reit website

ARREIT has a diverse portfolio encompassing hospitality, industrial, education and commercial properties.

- Holiday Villa Alor Setar 
- Holiday Villa Langkawi 
- Permanis Factory
- SEGi College, Subang Jaya 
- Block A & B, South City Plaza 
- Wisma AmanahRaya
- Wisma Amanah Raya Berhad 
- Wisma UEP 

Arreit NAV per unit is RM1.0540
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After dividend, it will be back to square one (plus losing another 10%), so why not buy if only after dividend to enjoy the benefits? I did that on AXREIT before (selling before dividend and buying back after dividend). Saves me 10% tax + I get it at a discount of ex-price smile.gif

Heard that SEGi would be moving out soon, so perhaps should wait until then? The portfolio of ARREIT doesn't seem very exciting too. Could that be the reason for its stagnant price? hmm.gif
Jordy
post Jul 17 2009, 01:35 PM

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QUOTE(panasonic88 @ Jul 17 2009, 12:23 PM)
Jordy, Arreit's dividend is yet to be announced. the share price now also yet to be priced-in.

so i was hoping to ride a free bus before that.

i might be wrong. like i said, i am ready to visit holland liao laugh.gif
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Holland not so easy to go one tongue.gif So, you're betting into this as hit-and-run?
Jordy
post Jul 17 2009, 03:14 PM

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QUOTE(debbieyss @ Jul 17 2009, 01:39 PM)
i am thinking that way too after listened to many of you guys' advices and now i know i've "guessed" it correctly...  laugh.gif
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There are two ways to go about it though, but you have to weigh your risk to see if it's worth to do it.

QUOTE(sopol @ Jul 17 2009, 02:49 PM)
it depends on your preference whether to buy before ex or after ex. just different in individual strategy. i have been holding this reit since its IPO. so far never missed receive the cheque every 6 months. the price has been stagnant at 72cent for quite sometime. i started accummulate with the intention to keep it long term at the ROI 9% - 10% annually. any price appreciation will be a bonus for me. at the current scenario, it is almost no chance for any unit trust (FD dont have to mention la) to offer more than 8% return.

the tenants under arreit property (13 properties altogether) are all under long term lease aggreement for 10 years. the soonest one if i am not mistaken will be in 2015. need to check back their annual report..
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sopol,

What you mentioned is true, that was why I've been accumulating REITs. But for the same amount of return, would it be more feasible to invest in a counter with greater prospect or less? Having very long leasing period is sometimes not a good thing as you would be getting old buildings like what ARREIT is having now. That will limit the appreciation of your buildings.

Well, I'm just sharing my two cents, no intention to divert anybody's interest here smile.gif
Jordy
post Jul 17 2009, 05:34 PM

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QUOTE(panasonic88 @ Jul 17 2009, 03:20 PM)
i shouldn't practise hit-and-run when i buy reits.

that only applies on goreng food tongue.gif
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Haha, alright. Thank you for your repiles smile.gif
Jordy
post Jul 17 2009, 08:34 PM

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QUOTE(espree @ Jul 17 2009, 07:41 PM)
Thank you sopol for your info. btw, I'm already onboard liow.
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espree,

Already on-board can only mean it's a good thing smile.gif

At the moment, I am studying more options and I have 2 counters in my mind. Will need more time before I deduce a good price to get in smile.gif
Jordy
post Jul 18 2009, 12:03 AM

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QUOTE(espree @ Jul 17 2009, 08:47 PM)
may I know which 2 counters? I invested hektar, atrium, qcapita and arreit. thinking to buy stareit and axreit but the price already fly so high liow  sweat.gif
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I am eyeing UOAREIT and AMFIRST. Still studying their properties though, so I can't come up with any conclusion yet.

QUOTE(panasonic88 @ Jul 17 2009, 09:25 PM)
bringing to new page biggrin.gif

thank you sopol, lemme massage massage for your tired hands tongue.gif

by the way, the value RM xxx,xxx/month means what? the rental Arreit is collecting?

p/s: SEGi College, Kota Damansara building very nice. so near to my house too, hehe.
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I want massage also! tongue.gif

Oh, so now I know where you stay. Haha.

By the way, all these while I thought the Kota Damansara campus was "owned" by SEGi. Looks like it's not. How sad sad.gif

Besides this Kota Damansara campus and the two Holiday Villas, all the other properties in ARREIT's portfolio would have very limited upside.
Jordy
post Jul 20 2009, 08:52 PM

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QUOTE(panasonic88 @ Jul 20 2009, 05:38 PM)
Axreit 2nd quarter financial report is out.

proposing dividend 4.1 sens.

congratz to Axreit shareholders!
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Hmm, it's just short of my expectation of around 4.3 sen. Anyway, 4.1 sen is good enough.
Hopefully next quarter they will pay more smile.gif

QUOTE(panasonic88 @ Jul 20 2009, 05:45 PM)
another one, which i bought recently - Arreit biggrin.gif

1st Interim Income Distribution 3.4190 Sen, ex date 31/07/2009.
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That is nice. It translate to around 4.8%. But its price has been holding steady today, see if it can appreciate tomorrow smile.gif

QUOTE(ts1 @ Jul 20 2009, 06:32 PM)
u also shareholders ma

the price close to NTA liao
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Yup, its price is too close to NAV, but I do hope its recent run-up would stop right there. Normally AXREIT's price would retreat after ex, so hopefully some profit taking would happen then.
Jordy
post Jul 20 2009, 09:43 PM

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QUOTE(panasonic88 @ Jul 20 2009, 09:01 PM)
Jordy, please update us whenever you feel like buying more Axreit. Me guess probably is after the ex-date yeah.
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Panasonic,

I may not be buying more of AXREIT unless the price drops to below 1.50. At current price, it just doesn't look too attractive to me (unless the DPU is expected to improve to 17 sen). Current year estimated DPU is 16 sen.

In fact, I am eyeing other REITs which are significantly lower in price. It would take me about another week to finish studying it. That's the beauty of REITs as I do not need to rush in to buy anything smile.gif
Jordy
post Jul 20 2009, 10:15 PM

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QUOTE(jasontoh @ Jul 20 2009, 09:46 PM)
Pls share your study result here as well tongue.gif
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I will have to go back to my hometown Klang to take a look at the piece of land it is proposing to purchase. RM65 million for a piece of land is significant, so I must really look into the prospects of this land rclxub.gif
Jordy
post Jul 20 2009, 10:40 PM

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QUOTE(protonw @ Jul 20 2009, 10:32 PM)
Wah, this future land owner is serous going to look look at the land they intend to purchased.  Tell us how you feel when you are back here, OK?  icon_rolleyes.gif
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When your income is dependent on the properties, would you want to check their dealings in detail? smile.gif
I do hope that this land's ROI would be greater than the dilution effect. Imagine a plot next to the Istana hmm.gif
Jordy
post Jul 21 2009, 10:15 AM

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QUOTE(ts1 @ Jul 21 2009, 08:48 AM)
look like it is a related party transaction based on tday newspaper reporting  sweat.gif
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Oh, so the land was owned by Baiduri Kemas. Well, it's normal to see related party transactions by REITs. Directors would inject more properties into the REITs if the properties are of no use to them anymore. Axis Vista which was bought last year was also a related party transaction. It's alright as long as the returns can justify the purchase.
Jordy
post Jul 21 2009, 11:26 AM

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QUOTE(ts1 @ Jul 21 2009, 11:04 AM)
i tengah beratur kat 1.70
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Not going to wait until ex-dividend? I am waiting for profit-taking after 31 July biggrin.gif
Jordy
post Jul 21 2009, 12:16 PM

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QUOTE(protonw @ Jul 21 2009, 12:05 PM)
You must be holding lots of this counter.  Anyway you represent the rest of us to go and check and thanks for the trouble. You are the angel to protect our interest as well.  Have a good trip and make sure it is worth what is paid for. LOL

notworthy.gif
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protonw,

I am not an INED of AXREIT, why are you making me sound like one? tongue.gif I am doing this to protect my "rice bowl" lol.

As a reminder, I will only be "guessing" on the prospects of this land by observation. No valuations will be made since I am not a certified valuer smile.gif

This post has been edited by Jordy: Jul 21 2009, 12:17 PM

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