Anyone with information why ppl are selling AXREIT? This is interesting and strange as other REIT counters hardly move but AXREIT is quite busy. Is there something cooking?

you queue early morning why cannot get? sure can get unless your broker got problem?

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Added on February 15, 2008, 11:22 amsorry another stupid question.. REIT yield is per annum right?

This post has been edited by Vv.SoViEt.vV: Feb 15 2008, 11:22 AM

Reit counters are like that, once they don't trade aka buyers not will to buy at high side or sellers won't keen to sell then no trade at all.
Once either side want to buy or sell then it will move the price up or down as liquidity are not that high for all the Reit counters may be except Stareit. From the movement of trade of Axreit, somebody eager to sell or liquidate.

Reits price (all over the world) will under some pressure for near term as global slowdown might affect properties sector not to mention the subprime mess in US doesn't affect people view on real estate. So don't except any dramatic turn around to upside for Reit for near term. Having said that, the lower the reit price, the higher the yield they become which make them attractive for long term. But do assess the portfolio properties in the Reit as whether they will be afffected by the economic slowdown.

But if one view to buy low and sell high for short term gain like normal stocks, then Reit is not a place to be.


Yes, whenever people qoute on yield, it is p.a. But most give their distribution semi-annually. Atrium gives every Q so far.

This post has been edited by cherroy: Feb 15 2008, 11:36 AM

Will queue Axreit at 1.68 <-- nice number mah especially new year time

i also q at 1.68, but cannot get yet!!

Still got a bout 2 hours of trading, long way to go.
Today cannot get, then wait for Monday loh, Monday cannot get then Tuesday or another week.

Why need to rush then. Market or specifically reit won't shoot up in near term.

This post has been edited by cherroy: Feb 15 2008, 03:17 PM

See, 1.68 done, close at 1.67. Too bad my queue 1.67 can't get the matching, at the back of the queue.

I got unit too!!! yahoo, now, how much should i target? any idea cherroy?

1.67? 1.65?

hehe it is a fun seeing you two buying AXREIT

i also feel the excitement

now i have
AXIS 18000@RM1.77

if go down to 1.65, i will buy another 5000 unit

I don't know as it depends on individual preferences. But most of the time, I opt to have some differences like 5 cents before add on again, something like 1.68 bought then 1.60-1.63 would be my next target.
But remember to keep on touch on the company financial situation, if nothing goes wrong, then it is ok to add on, but if financial result shows deteoriation, the plan has to be changed.

Axreit is projected to have around 14-15 cents DPU, so roughly gross yield 8.9%. net yield 7.6%. <-- see the detrimental effect on the 15% witholding tax. You need to take the net yield as benchmark, gross yield carry no real meaning one.

Last year before budget, when reit industry company are lobbying the gov to reduce the witholding tax, at that time, all reit price went up, axis to 2.10, Stareit to 1.05. But after budget disappointed everyone with no change, reit price continue to slide down until now.

This post has been edited by cherroy: Feb 15 2008, 05:37 PM

plan on buying another 16lot(100) if price drop to 1.65

aiya.. how can i missed that. You know to define the number in canton, I see the number only in pure number.

I have a question.....

Looks like cherroy and Neo18 have quite a lot of holding in either AXREIT, ALTRIUM, STAREIT, etc. at a price much higher than current market price. Just want to know what is your thought on that as I don't see that you guys are selling down anytime soon. Are you purely buying it for dividend gains? How about it is eroding your invesment?

Interesting.....

Anyway, I will be monitoring AXREIT next week too. It is at a very attractive price.

Personally, I look for the yield only as alternative option of FD.

Also, even though most reit price is falling but not that much, (I got Atrium at about 0.96 average, Stareit at 0.90, Axreit average around 1.75-1.85), which those already getting some distribution from it.

Yield is 'locked down' when you purchased, the price movement won't affect the yield. Just like I had bought Atrium at 0.96 which is about 7.8% net yield (after deduct the 15% witholding tax). As long as Atrium manage to maintain its DPU at 8.8 cents pa, then daily price movement doesn't affect my yield or decision in it. Only if Atrium DPU drop, then I would concern about it or selling it. That's mean I can expect 7.8% each year from it from my invested 0.96.

Instead the price goes down which only makes the yield even higher and more attractive for future purchase.

But remember to watch the individual company issue closely especially their earning result. If nothing goes wrong, yield play is ok, but if earning result shows some deteoriation then need to revise the strategy again, and decide whether to hold, sell or buy.

I do see some more downside for reit although yield is attractive, mainly due to real estate mess in overseas as well as potential economic slowdown which does hurt Reit price in general which follow overall market trend unless gov intends to reduce or abolish the witholding tax which is a great news for reit.

This post has been edited by cherroy: Feb 16 2008, 03:55 PM

be frankly i m saddened by the fact that the current yield is on par with ASW, which is around 8%. If the govt removed withholding tax, I ll be VERY happy.

Yup, this is the main issue of unpopularity of Reit in Malaysia. Singapore is much lesser, if not mistaken, Singapore domestic investors are exempted from any tax, while foreigners at 10%

This post has been edited by cherroy: Feb 16 2008, 06:03 PM

my ATRIUM average is around 1.1 la!!! sob sob

ATRIUM NAV per unit as at February 15, 2008 is RM0.995

AXREIT NAV per unit as at February 15, 2008 : RM1.653

Thanks for the informative explanation.

How about when the share price drops to 20cents less than your buying price? Will that make you sell off your REIT or still holding on to it?

The thing I see a difference from your investment in REIT than other counters is that you seem to have no TP to selloff, seem to be not protecting your investment first, etc. Sorry if I get you wrong.