Start from 2008, gov is imposing single tier dividend already ie. you can't claim back the excess income tax you paid on the dividend on corporate rate of 25%.. Even if your total income is below the income tax bracket of 25% or don't need to be taxed, you still can't claim back the excess tax paid which under old imputation system, one can claim back the excess paid tax.

I am looking at Qcapital as well but prefer to below 0.75, so that yield is much higher and have some protection/discount of NAV which is protection against properties price depreciating in economy poor time.

Will average down Axreit when time is suitable ie. market calm down a bit, not mind to buy a little bit higher, as long as below 1.40 will do.

This post has been edited by cherroy: Oct 28 2008, 04:00 PM

Not only fair, it is dirt cheap at 1.00, if income from rental doesn't drop more than 10-20%, while properties price doesn't fall significantly, properties price will under some pressure, no doubt, but as long as it doesn't collapse like US real estate, it could be good bargain.

Don't worry, they have no cash to buy back, every year they need to distribute all the profit to the unit holders, which is one of major feature I like reit. After all shareholder means 'share' the profit mah.
Min requirement for reit - distribute at least 90% of the profit made.

I don't like company keep tons of profit which is not being utilised, as my personal view, it is selfish act and not willing to share and fair to looking after the minority shareholders as retailers.

This post has been edited by cherroy: Oct 28 2008, 04:15 PM

Atrium now at 13% yield.

Atrium asset are all warehouse for logistic business, actually only 4 warehouses.

Yup, for more diversified, Axis always being preferred. But 13% is very tempting figure, but do remember, there is one property under Atrium which its lease has expired and fruther renewal based on monthly only, so it is the risk of it of tenants whether they intend to lease it or not.

Yes, that's why reit also dropping, as market generally move ahead of real economy as it is a discount mechanism.

As if rental remain the same, and occupancy still intact, there is no reason for reit to drop 20-30%.

Yes, I noticed that before. As for the yield is the lowest, may be investors taking account of tenants quality as well as those more stable tenants (DHL, IBM, BMW), people willing to take lesser yield in exchange for stable tenants.

1. Yes & no. Yes, it might dilute the EPS with more shares, but, migh tbe no also, as those new shares being issued is used to fund the new acquisition which generate more earning to the company.
As shown by previous 50 million private placement, it doesn't dilute the DPS but improve on it as newly acquisistion properties generate more rental income for the company.

2. Issue price generally will be set by market average price which determined by the company and approved by SC.
So the lower the market price it is, the lower fund being raised and could be facing difficulty to place out in a bad market condition.

1) Already explained.

2) Take it this way, NAV stands for Net Value Asset ie. how much the total asset of worth per share, so do you want to buy the share price in the market above or below?

Just like Atrium, NAV is RM0.99, so basically its asset worth Rm0.99 per share. So you want to buy Atrium share at Rm1.10 or RM0.65?

If not mistaken, there is a regulation in place for reit which they can/should do the revaluation every 3 years, but can it last year already done the revaluation, they can't do it again until 3 years period has past. So every 3 years, if the properties price are lower across, we might see NAV dropping as well.

Yes, your concern indeed realistic, that's why all reit are trading below NAV at least 20% or more in anticipating a slowdown in properties as well as rental income.

If taking account of single tier dividend, yes, currently they are.

But for reit you don't have the unlimited upside potential as normal shares do. As income is predictable and flat while share price shouldn't be too much over its NAV as well. As a property worth that much, then reit should be around that.

Upside potential or attraction for reit come from 2 sources only:
1. rental income increase
2. properties price appreciation
3. FD interest rate too low compared to reit yield.

While for normal shares,
1. Company is doing businesses, so businesses can be expanded with no limit which result in greater profit. So thoerectically, there is no upside limit for the share price, as long as profit grows.

Reit and normal company shares are actually two different class of asset.

Reit is much similar of buying a property then rent out only.
While normal share, you are participating in company business to earn profit.

This post has been edited by cherroy: Oct 30 2008, 04:14 PM

5th Nov.

Yes, tomorrow is the last date, you have to buy before ex-data to entitle for the dividend/DPU.

Amfirst giving out 4.2 cents.

17 Nov.

In the future, it cannot be claimed back under single tier system.
Now, we are in transition period of changing the tax system. So there might be some confusion around.
So if those company doesn't use the previous tax credit to offset the tax then all tax credit will be voided after 2012.

So whenever you see the dividend is declared under single tier, then no claim back.

They will put a word single tier under the back of dividend, just like BAT does.

Yes.

Previous under imputation system. BAT declared as Rm1.00 dividend less tax. But people can claim back.
But now with new single tier system, it become Rm0.76 single tier not claim back.

Both company is actually paying the same amount of dividend.

For rich earner, it makes no difference, still an attraction for them! because personal highest income tax bracket > corporate rate tax.

Steady dividend stocks are even more attractive nowadays because of interest rate cut around the world. Deposit rate is sliding across the globe, even for US only 1%, so those with 7-8% steady dividend yield and dividend/profit won't be affected too much in the financial crisis become more attractive than previously.

Dividend yield attraction is always a comparative with deposit rate. If FD rate is 7%, then it makes no sense to invest into stock that carry 7% dividend, as why opt for risky investment while getting the same yield?

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Added on November 8, 2008, 8:53 amThey generally will state at the back when declared the dividend, just like BAT declared "76 cents dividend single tier".

This post has been edited by cherroy: Nov 8 2008, 08:55 AM

Haha, Amfirst already creep up from 0.73 to 0.82 courtesy of the 4.2 cents DPU.