vergil90,

The placement price has not been determined yet. LaBrooy stated “The placement of 51,180,200 new units is slated for this third quarter. We hope to raise a minimum of RM75mil, assuming Axis REIT’s share price at the time of placement is at least RM1.55."

So if AXREIT's price maintained at RM1.70, the private placement will be priced higher.

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Added on July 22, 2009, 12:05 pmPanasonic,

Looks like your free bus ride went the wrong way Announcement of the dividend has been made, and today profit-taking is slowly setting in.

But look at the long-term side of it. The counter may still be good as it is around 40% off its NAV

This post has been edited by Jordy: Jul 22 2009, 12:05 PM

ARREIT of late noticed lotta sellers throwing to B-Q around 0.735 last few days.
Don't see any shareholding change announcement that directors are throwing. Am thinking of getting some.

Can anyone help to comment? Thanks

This post has been edited by Muliku: Jul 22 2009, 01:29 PM

What surprise me ( maybe I am wrong ) that there are many strong REITs supporters here.

My concern is none of you seem to be interested to attend their AGMs. Mostly prefer to the silenced minority interest.

At least, you need to show a very bit of POWER of what you know, i mean showing your concerns and not the amount of money you have invested with them.

Just ignore me. Talking senseless here.

This post has been edited by SKY 1809: Jul 22 2009, 01:41 PM

Exactly my thoughts. I missed the previous AGM, but I will attend the next one when it comes up.

Agree with you for this, but i have a few points here:
1. if i am the investor of the 20% sure i will invest lower than market price.
2. The 65mil deal is RPT.
3. The 65mil deal with return just a mere 5.6% will drag down the DPU (after consideration of the 20% private investment, which used to fund to purchase the 65mil)
The EPU will be lower to 14.4 from currently 16sen, which is a negative factor with me.

If i am Axis Reit management, why don't i take advantage with current low interest environment to get a let say get a 4% loan to fund the purchase, although will raise the gearing may be up to maximum 50%, but the additional DPU sure will drive up the price more than the currently RM 1.76 NAV and issue the private placement at least at this price in the nearest term and not dilute the earning like this way.

Just my 2 cents.
Anyway, just dispose a quarter and hold another 3 quarter hopefully like what u say the private placement will higher.
I am very satisfied with their previous track record, but now
(if amanah saham or related party is the investor of the 20%, u think u can get higher and bargain with GLC/related party for higher price? This depends how good the management are, )

Where do they usually hold their AGM and how do I know when they have it. So far I haven't attend any of the AGM. Will try to attend if they are in PJ or KL.

I was wondering since Amanah Raya is the trustee of all those Amanah Sahams, does ARREIT stand to benefit from all those fire-sale of ASM & ASW ? Seems like AXREIT is benefitting.

This post has been edited by whizzer: Jul 22 2009, 11:00 PM

It is non-related issue.

Trustee is trustee, it doesn't relate.

Whether Arreit will be benefitting from the ASM, it depended on PNB fund managers whether consider Arreit as its target investment.

Yup, your concern is perfectly reasonable especially on RPT side.

Even the CEO has said, some DPU will be diluted due to private placement.

For taking loan or private placemenet, they need to go for private placement because there are 9 to 10 properties in the pipeline which they intend to inject into Axreit. Without private placement to raise capital for the acquisition, they won't able to do it.

At higher borrowing or gearing, if something happen on financial market, refinancing could be very problematic which has brought down a lot of overseas high gearing reit in recent financial crisis. So we can't say which one is definite good (taking more loan or private placement or new unit issuance)

They need to expand and diversify their portfolio which is a positive factor. For reit, size matter in term of attracting instituitional investors as well as liquidity issue which are the 2 important factor to lure instituitional investors besides quality of properties and yield.

At 1.7x, based on NAV, it is fully valued. Now the price is supported based on yield factor.

Just wonder why all the people line up for few hours just to purchase the ASM & ASW. Since ARREIT also under Amanah Raya, i think they better invest in ARREIT and get stable 8% return, rather they get less than 8% with all the trouble (i know the ARREIT risk is higher, but in current environment i think the difference is negligible)

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Added on July 23, 2009, 1:03 amAgree with you especially the last part. What i concern is the first purchase already RPT that drag down the yield so much (include funding by private placement) - 10% that's from 16sen to 14.4sen, how about the subsequent 8 or 9, same case or better?

Since their share price continue grow to NAV price with current good yield, the management should be able to hold for a little more time to issue the private placement at higher price, for me best case is NAV price so that the new investor share good and bad together with us, unless otherwise the management can get a very good yield property let say yielding around 8% to 10%, i don't mind the private placement a little lower for long term grow.

This post has been edited by vergil90: Jul 23 2009, 01:03 AM

vergil90,

Definitely. Who wouldn't want to subscribe at lower price? Agree with the low yield of this purchase, perhaps they would be refurbishing with the extra RM10 million, and then bring in new tenants. Who knows what they're planning?

But one thing is for sure, take a look at today's volume. If this deal is as bad as you think, would there be such high volume today? If the management can't maintain their yield, I am sure we will see a drop in price today, but it went up. So, confidence is key.

Why are the common people buying ASW? Education is the key. More common people trust Government "guarantee" more than the stable income from REITs. I have been talking to many of my clients (when promoting REITs). That was the exact feedback I am getting from them

maybe the mgmt is trying to hold 1.70 for sake of private placement?

Ya, i also hope the extra 10mil will bring up the yield for this land.
Ya, will hold and sees how's the confidence going. Don't mind is the management holding the price like ts1 say but the important thing is higher private placement price (coz more money to pare down debts for future purchase and higher NAV).
Jordy, you r right. Without education and the passion to study more things, the Government will always get cheap fund sources easily. See how they later want to sell RM 10 billion ASM.
Still think that beside FD, currently the REIT risk and return better than Unit Trust and similar products.

You forget that it takes reasonable skills and knowledge to be able to invest in the stock market. Also since ARREIT is traded on exchange, most people will already have formed their opinion on it being "risky".

Personally for me, last year, I also had the same mentality. (i.e. if anyone asked me REIT vs ASM/ASW, I would have gone for the later 100% of the time). However, since getting stock online & experiencing myself, I would say, the person would need to experience it himself to appreciate the opportunities.

I'm new about ARREIT, REIT. can someone brief it?

Jordy,

Your yield computation is diff from my broker, which is about 10.9, later more. ( Rental Yield ). Dividend yield is about 11.9%. Read 2/3 of report attached.

Though an increase in units through private placement, might need to build in the incremental increase in rental incomes , in order to balance up. Gearing might fall to 27% from 37% if fully placed. Another + point.

Existing Fixed costs tend to drop if operation expands ( just an assumption made ).

Attach report in case you are interested.

RPT , is my concern also.

Regards

This post has been edited by SKY 1809: Jul 23 2009, 01:25 PM


Attached File(s)
 AXRB_090721_RN2Q09.pdf ( 55.4k ) Number of downloads: 18

Today buy ARREIT 0.735

guys..another cheque coming up. bsdreit declared interim DPU 3.69 sen/unit.

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Added on July 23, 2009, 2:40 pmwelcome on board

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Added on July 23, 2009, 3:44 pmhektar is the next target to declare DPU 2.4sen..cant wait how much their profit for the 2nd quarter.. any growth profit will indicate a much better DPU in the last quarter...

This post has been edited by sopol: Jul 23 2009, 03:44 PM

SKY,

Unfortunately the yield computation was not done by me, it was vergil90 There are many ways in which we could compute the diluted EPU, but I have not mastered it. Therefore I could not comment on this.

With regards to RPT, we ought to see more RPTs coming from AXREIT. Why? Remember that Axis was a property development and investment company set up by Alex, Stephen and Abas? Their core activity now is to develop and "groom" these babies to be yield-accretive. So it is completely normal to see RPT within AXREIT

Well, that is only my 2cents on what I feel.

sopol,

BSDREIT is one REIT which I would never get myself into at the moment, as they are operating in an industry which is alien to me. And with CPO prices fluctuating so sharply, it does not make BSDREIT a preferred choice for stable stream of income.

ya jordy..you better dont if you are unfamiliar with it. as for me, i already got it much earlier. me actually anticipating another 7.xx sen in the next DPU announcement...