Oh my, sorry for the mistake I didn't read the whole report. But according to normal practices, prices of stocks would increase should there be increase in profit. Guess the case is different with REITs

Cherroy, even if the liquidity is low, I think it should not deter people from investing in REITs because we will be expecting sustainable income through REITs. So normally when we buy REIT counters, we would not think of selling them UNLESS the company becomes insolvent.

This is just my two cents though, but I believe different people would have different perspectives. But I think your perspective on REITs should be similar to mine, so why worry about liquidity issues here?

Yes, I don't care much about liquidity as long as company able to pay handsome dividend or distribution. In fact a lot of my stocks are/were low liquidity one aka seldom trade much.

Just as a reminder, just in case people hope for price appreciation side

Lol, true. Sometimes it is quite tempting to sell the REIT counters. I did once on AXREIT, bought at 1.18 and sold at 1.36, later bought back at 1.28 until now. I kept reminding myself not to sell it even when the price hit 1.50 because now I am on accumulation phase. My aim is to accumulate as much as possible since the price is still low. Now the stubborn AXREIT is not going below 1.40 , so I might be looking to diversify into either UOAREIT or AMFIRST.

I see UOAREIT as more of a gem because of their expertise from their Australian counterpart. Not really so into AMFIRST because of their investment in Summit. It is a place which I don't really like to visit (except for climbing gym )

PKNS eyes REIT buy

It is learnt that the state property arm is eyeing a listed REIT with total assets valued at more than RM600 million.

General manager Othman Omar said PKNS was negotiating to buy a controlling stake. He declined to name the REIT.

woo, looks like 1 of the reits gonna fly. They've alrdy given clue, so whoever guesses it right might make some $$.

I guess it must be Axreit...2nd choice is hektar due to the assets that they have and the portfolios that PKNS will inject in...

however, im not sure its a great news or not...

the present mgmt of both REITs has done a good job already, if PKNS wants a controlling stakes, then, it means they will somehow will disturb the effectiveness of the present mgmt in the future someways.

I vote present status quo.

thanks guys

Yea, agree. Thats the bad side of it I guess. But on the bright side, let's hope they offer a good price for the stakes, around NAV price maybe

could be axreit since proposing restricted offer right

I have shortlisted the few probable targets for PKNS:

AXREIT
HEKTAR
QCAPITA
ALAQAR
BSDREIT

Take your pick

I would NOT invest in any REIT controlled by PKNS or any state-linked agency. Besides, too many of PKNS' assets are in Shah Alam ... not my favoured property location.

I hope PKNS will buy one of the less popular REITs and stay away from my favourites like Axreit, QCapita and Hektar

even they've invested, just a shareholder would not have enuf stake to wrestle it over from present mgmt

PKNS is looking to buy a controlling stake-lah. They will then dump some of their properties into the REIT.

I do share the same sentiment... I don't think the yield of PKNS assets will boost the REIT that it will inject into. I fear it would bring more negativity than positivitity. In my opinion, I feel PKNS is just dumping their assets into the REIT to cash out since most of it are quite run-down. Just my 2 cents

PKNS injecting Malls and some buildings.

Al Aqar is only hospitals..so maybe can strike out

Bsdreit is only plantation..maybe can strike it out too..

maybe can strike hektar too...cause Hektar is only into Malls....

Qcapita has 800m of assets ( not in the range of 600m) & their largest unitholder is HSBC 30% & quill about 23%...dun think HSBC & quill will let someone else take control that easily.

I think , Most probably its Axreit , cause their assets about 600m and they are quite diversified in their properties ( so, mall can be absorbed) + EPF is the 2nd largest unit holder...baiduri only have about 18%(largest unitholder)..

This post has been edited by asambuffett: May 15 2009, 02:22 AM

Buying controlling stake does not mean their management will change. They may be controlling the company, but the management could still be the same. I don't think their intention is to run the REIT company, but just to leave the company on auto-pilot while they earn without doing anything.

That could be one of the reasons Any idea on how much are PKNS properties yielding?

You could be right. So what's left now would be:

AXREIT
HEKTAR
QCAPITA



And could they be only eyeing REITs concentrating in Selangor? Since they are owned by Selangor state, they might be buying stakes into REITs with properties in Selangor. Just a thought

This post has been edited by Jordy: May 15 2009, 02:19 AM

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Added on May 15, 2009, 2:28 ammaybe can strike hektar too...cause Hektar is only into Malls....

Qcapita has 800m of assets ( not in the range of 600m) & their largest unitholder is HSBC 30% & quill about 23%...dun think HSBC & quill will let someone else take control that easily.

I think , Most probably its Axreit , cause their assets about 600m and they are quite diversified in their properties ( so, mall can be absorbed) + EPF is the 2nd largest unit holder...baiduri only have about 13%(largest unitholder)..

This post has been edited by asambuffett: May 15 2009, 02:30 AM

Also it seems like AXREIT has bought PKNS properties in the past.

In my humble opinion, AXREIT is the least probable target (at least the in the major shareholders' concern) because the four partners worked hard to build their empire. It is very unlikely that they will let go of their stake (especially in Lee Lao's case). Unlike HSBC, Baiduri has no other primary businesses, if they let go of their one and only primary business, they will be out of business PKNS can never gain the controlling stake (Baiduri + Lee Lao + Tew + Abas has a combined stake of 27.8% while EPF + Valuecap has a combined stake of only 13.5%).

In QCAPITA's case, even if HSBC lets go of their stake, they still can focus on their finance business. Real estate is not HSBC's primary business, they invested in QCAPITA only for profit. So if PKNS is able to pay at high premium, I believe HSBC would let go. I am not very familiar with Quill though, so I don't know if they would sell their stake.

"Selangor State Development Corp is said to be negotiating to buy a controlling stake in a listed REIT with total assets worth more than RM600 million"
As a reminder, they stated that the total assets are worth more than RM600 million, so it doesn't necessarily be within that RM600 million range. RM800 million is still more than RM600 million. So it is still right to say QCAPITA is in the running as well

which have highest dividend, ?
in us kimco , simon property.

Axis REIT to revamp ‘icon’ after losing Nestle as tenant

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

summarizing

- nestle house moved out to damansara perdana, which is a new golden triangle
- axreit will be spending 7mil to renovate & reposition the building
- expecting to be ready by 2010
- axreit is actively speaking to many potential tenants

hhmm, hopefully will bring in a big tenant like nestle house soon