sopol & Jordy,

just wondering, are you guys holding any non-Reits stock atm?

p/s: Sopol you sound like you have ALL the Reits listed in KLSE

axreit manyak sotong

sopol,

Would that make the total DPU 10.xx sen for this FY? Not bad

panasonic,

Currently I am not holding to any non-REIT counters. Why? Because I NEED this stable stream of income to continue living

After I have accomplished this, I will start diversifying into other growth counters (but hitting the limit soon) Either that, or I could sell all my AXREIT and live on the profit (which could cover my expenses for a year).

panajie..yes i am holding non-reits as well. last time i trade quite frequents but end up losing money especially the goreng-goreng one. now do some balancing in my portfolio (reits, dividend counters and gorengs also got..he.he.)...and it worked very well. no longer cemas when leave the screen...

i only got 3 reits. regret didn't buy the most cun counter "axreit" when it bottomed 1.00 last time..one click away 'confim button' only..

still evaluating to buy another one reit which i consider able to give me at least 9% yield/year. and to increase my holding in the 2 existing reits that i currently have..

Let me guess. You got ARREIT, HEKTAR and BSDREIT. Your next target should be AMFIRST, while increasing your holdings in ARREIT and HEKTAR?

thanks for the instant feedback, sopol & jordy

ohyah, another dividend cheque for Qcapital - Gross interim income distribution of 3.78 sen per unit.

reits rocks!

One thing is for sure, I don't buy as many REITs as you people

Up until now I only hold 2 REITs

Frankly speeaking, a lot of reit are almost RPT one before properties being injected.

The most important thing is the RPT is not detrimental to the reit holder.
The one that that we should be worrying when RPT or major shareholder treat reit as unwanted properties dump side, aka sell those poor prospect properties to reit.

As long as RPT is bringing benefit and properties quality itself is healthy, it is a fair deal.

---

Added on July 23, 2009, 5:40 pmAs posted long time before, among all want to consider, Axreit is always the most preferred. At least until now with its fundamental.

Some investment banks put a targe price of 2.20~2.40, which personal think a bit high, which the TP is based on yield credential.

Yeh, another cheque coming.

This post has been edited by cherroy: Jul 23 2009, 05:41 PM

ha.ha.ha. you read my mind. amfirst is one of them..still got another 2

The computation is simple, 1st half they distribute 8sen for dividend (which i understand is near 100% of their income, excluding RM 2million profit which is paper gain from valuation, though NAV will up a bit). So Assume whole year = 8 *2 = 16cents for current 19 properties.
The additional property add 1.28 cents next year so total 17.28 cents.
Private placement is 20% that's mean next year 120% share the dividend. 17.28censt / 120% = 14.4 cents DPU for next year.
Remember, the private placement is to purchase the 65mil and the extra 10mil is develop it further. So, the total debts still remain the same relative to NAV, but will be lower against total asset, which for me just a small +positive factor.
He he, if they can private placement at RM 1.70 and use extra to pare down debts then good for long term like what Cherroy say(short term not good coz now low interest environment)

Another two? Well, shouldn't be hard to guess this time.

Hmm, AXREIT and TWRREIT?

The private placement actually has been planned last year but due to unfavourable financial market situation, it is delayed until this year. Total 100 million has been approved by SC last year which is planned to be in 2 portion.

It has been utilising borrowing to acquire lot of properties previously which drive up the DPU from previous around 12 cents to now 16 cents. So it is good to see they pare down the borrowing.

Private placement is better than right issue, as if private placement is successful placed out at good price, then it means existing unit holder doesn't need to fork out extra capital while getting more diversified in the reit properties portfolio with some potentail higher DPU (may be now diluted) in the longer term future if rental and properties become better time.

Getting borrowing is risky than private placement, because potential future higher BLR, as well as potential refinancing cost and difficulty.

Some reit in overseas go under because of refinancing issue, so too much borrowing is also a risk.

It is easy if you want good returns is to increase borrowing by up to 300 % let say with current low int costs. ( instead of having private placements ) Most Foreign reits do that to justify a high yield per share.

With no additional increase in share units. DPU is more. You happy , co happy ( short term ). With many new prop needed to purchase , HIGH GEARING SEEMS TO BE A GOOD OPTION.

In actual fact, the add prop would increase Dividend yield to 11.6% ( Increase by 1.6% ) that matters most ? Or not ?

I suspect the total rental incomes could drop due to some unrented out prop, which could penalise on the return of new prop, if you compute on overall basis.

Actually , What they intend to do is to drop current borrowing to 27% ( limit to max 40% ) . If they allow to make cap repayment to you instead , hence share price drops, then also DPU might be more attractive. My thinking only.

Just my opinion only.

This post has been edited by SKY 1809: Jul 24 2009, 07:14 AM

I noticed this is Kenanga's research paper:

"4.10sen GDPU in 2Q09 , made out of 1) 95.2% payout of 2Q09 RNI plus 1Q09’s undistributed income or 3.9sen"

Wasn't it distributed? I'm a bit confused here, could someone please confirm?

Trading above NAV ?

Using Fair price should be better now ?

Hmm... I can't seem to find the Ex-Date for AXREIT 2Q 4.1c Dividend, any idea? Press release seems to left out this info. Maybe I overlook it somewhere... anyone mind to enlighten me?

hocklai8,

ALWAYS look out for announcements in Bursa's website. They are always complete.

AXREIT's ex-date is 31 July, payout on 4 August.

EX-date :31/07/2009
Entitlement date :04/08/2009

Here's the link
http://www.klse.com.my/website/bm/listed_c...ments/index.jsp

The price should stabilise after ex-date. The hype is still on its dividend at the moment. And also after placement, there will be some dilution in price. That should spell some buying opportunities.