I have no problem with yield around 7-8% if those tenants are going to stay long and paid up on times.

Compared to yield of 10% on Atrium warehouse, while potential lose tenants in between. I would take the 7% for long term play.

Anyway, me invested little nia.

Done a thorough analysis on some of its properties today (couldn't do more because the management did not disclose the income on other 5 properties). Here are the results:
By looking at the results, we can see 4 properties out of 5 analyzed were receiving low yields. These 5 properties have an average yield of only 7.46% (below average yield for REITs).

Let us take a look at the average yield of the other 5 properties:

Net total annual income (a): RM 12,706,037
Total purchase price (b): RM 319,000,000
Average yield (a / b * 100%): 3.98%

Well, this simply means that the average yield on all 10 properties is (7.46% + 3.98% / 2) = 5.72% (still well below average for REITs).

Anyhow, this yield is just an estimate by using some calculated assumptions based on FY2008's figures. The yield should not increase unless there are positive reversions done this year. Otherwise, we will be seeing another year of low yield.

I am only wondering how did they manage to pay its investors a gross yield of 8.16% (net yield 7.35%) for FY2008 while it is earning a net yield of only 5.72%. Still, if they were able to maintain 7.51 cents distribution for FY2009, those who bought at 0.84 would only be yielding a net of 8.05%.

If any of you who have also conducted a study on QCAPITA and found a mistake in my analysis, please do correct me. I am just hoping everybody would be informed of the actual situation before someone really gets stuck with QCAPITA.

P.S. Just to add onto my comments, another reason I do not have faith in its management is due to the fact that they are not being fully transparent in their report. A good management team would disclose the full breakdown of their income in its annual report. This must be taken into consideration before choosing the stocks to buy.

Assuming all your data are correct.. please consider this:

Q capital NTA = 1.2094
Current Price = 0.84
Discount 31% against NTA
Because all of your calculation is basis Purchase price, hence u are using NTA to calculate...

yes base on price of 1.2094, u will get around 8.05% distrubution
but now price is 0.84, hence you will get around 9.6% dividend

Conclusion, price of 0.84 has already taken into account their low yielding property

The initial investment for all 10 properties is RM 715,146,000, while after their revaluation, the assets now are worth RM 816,013,468. The only risk is on its management's inefficiency and transparency. But I do agree with your argument that at 0.84, our friends here are buying at a discount of 31%, which creates a very comfortable buffer

Yup, I am not interested to buy when it is at 1.00 or above.

I calculated the potential DPU of 7.x cents, then dividend by 0.84 = 8.xx % which after witholding tax translate it into around 8% net, that's why I am comfortable with the risk.

Anyway, appreciated your analysis, many thanks. 

Jordy,

Thanks a lot for your information. Really appreciate it  as i am eyeing on axreit and qcapita now 

Go to www.klse.com.my, under Listed Companies theres a section for Annual Reports on the left. You can find it from there.

But the report at KLSE doesn't have all those photos, and not so detailed. Isn't there a single file that combines all the 12 separate pdf files?
http://www.axis-reit.com.my/section.cfm?id=25

It is under KLSE "Annual Reports" and NOT "Announcements". You can find it at http://www.bursamalaysia.com/website/bm/li...ports/index.jsp.

Hahahaha, thank you very much. Just downloaded. Never knew KLSE has Annual Reports section.

Anyone interested in AMFIRST?

Price now is 0.88 from previous high of 0.945 and lows of 0.82. Dividend Yield 10.299%

Queing UOAREIT at RM 1.09 , 1.08 anyone eyeing this counter?

I'm only buying it if the price goes back to less than 1.00

anyone got the axreit check d?