indeed, i'm waiting for that too.

Long time no news from you
We were just getting hyped up with the recent run up of REITs

Yeah, REITS, the turtle stocks, climbing slowly everyday. Come to think of it, it is exactly like the turtle & rabbit story. Wished I bought more turtles....

The next price depression.



This post has been edited by SKY 1809: Jul 24 2009, 12:45 PM

Haha, guess you really learned your lesson not to mess with turtles

But I don't really look forward to capital appreciation in REITs because I can only see the paper profits, but I can't touch it

Errrmmm... don't understand!

Hey, that's true leh... paper profits only, nice to see, cannot touch....

I blamed Cherroy for not forcing me to buy REITS. I remember last time when I was asking him about REITS (AXREIT was at RM1.00), he said not bad, can buy, but judge your own. He should have said "I have EVERY confidence in REITS. Gives you GUARANTEE returns and possible CAPITAL appreciation. Don't look at it as TURTLE stocks as there may be NINJA TURTLES in those REITS too. BUY BUY BUY. BTW, I have a fortune in REITS!". Would have dump all my money into REITS.....

Haha, jokes aside, now that I know what is REITS, I will definitely buy some more next time......

Price to valuation wise is still quite low for some other REITs. There are 11 listed REITs, so I don't think the focus is only on AXREIT (although it is the preferred one at the moment). Look around and choose one REIT which operates in an industry you are familiar with. There are REITs in 'rojak' industry, logistics, retail, palm oil, hospitality, medical, etc.

I guess so. I'm holding Qcapita and Hektar at the moment. Follow recommendation from you guys......

I don't think I will buy some more at the moment. Wait for the prices to come down. If it doesn't, it's not a problem too as I'm not desperate to get them.....

LOL,

FYI, I bought Axreit from 1.70, 1.60, 1.50 until it hit the 1.00. So have bunch of different price.

Most of my portfolio stocks are turtle one.

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Added on July 24, 2009, 3:00 pmQcapital is also not bad mah. Now 1.00 already, sigh, can't buy more.

This post has been edited by cherroy: Jul 24 2009, 03:00 PM

Why nobody talks about Alaqar? It should be quite stable since the parent, KPJ, is doing very well right?

Haha... turtle stocks good for the heart! No sudden heart attacks!

However, what Jordy said is also quite logical, that since we buy REITS for long term for its dividend, any paper gain is just that - paper gain. Come next recession, we'll get capital depreciation leading to no gain at all...... but then, that's a good time to buy!

Any more info on that? I looked at its charts and its price seemed quite stable since 2008....

What is ALAQAR?

Fundamentally, healthcare business will only flourish when there is a HUGE pandemic (not H1N1) or 20-30 years down the road. Therefore, I do not see ALAQAR going anywhere up from here any soon. Meaning to say, less patients = less income = less rental reversions.

So there you have it, its income for now should not grow any faster (if it grows).

Well, this is just my view.

Next recession? Well, lets hope for stimulus crisis or US currency crisis to materialise soon

By the way, paper gain might not just be paper gain IF you know how to play it around to increase your yield. I might be doing that after the ex-date. My current yield would be around 10.9% (if the DPU is 0.16). I can raise it to 12.8% with the same DPU

Hi,

How do we account for dividends from Reits for tax purpose? Does the company give it net of 10% tax? Do we have to pay tax on the net proceeds received again? I remember for share was like we declare the gross dividends as income and then claim back the tax rebate or something? thx

they will deduct it for you. you dont have to do anything except cash in the checks.

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Added on July 24, 2009, 11:08 pmi've been around, just didnt touch reit for a while.

This post has been edited by ante5k: Jul 24 2009, 11:08 PM

Sorry Jordy,
Unfortunately can't join you tomorrow.
I don't go back that often. Maybe once a month.
G'luck with the survey. Cheers mate

You can sell when the reit price is way overvalued or yield is not attractive anymore which is recommended to do so. It is not like fall in love forever which is a bad idea in investing.

Reit price cannot go too far away based on 2 factors only, NAV and yield. Any yield that's not attractive (not significant more than FD rate) is not sustainable for reit price to hold on.

Different, even there is pandemic, it doesn't affect how well Alaqar will be doing, it may drive more business to hospital but for reit holder, you are renting the properties to hospital only, you don't participate in hospital's business.

Sold all your ATRIUM so soon?

Ah, it's alright mate. I will go there myself then

You're stating a right point, we are only renting the property to tenants. But I would like to think of it this way.

If the tenant makes money, the tenant has the capacity to pay higher rental (in this case, KPJ itself). So my view is that if the private healthcare sector is not growing, there will be stagnant rental or even worse, decreased rental.

It's like what my formula says. Less patients = less income (in this case to KPJ) = less rental reversions (to ALAQAR).

Ok, fair enough, just to clear the air so that people won't be mis-understanding.

Cheers.

It's alright, we all live to share. I agree that my previous statement was quite vague too, so it's good if I make it clear as well

Currently we have 2 REITs working this way, but BSDREIT's model is a little different. Their land rentals fluctuate based on the performance of oil palm. That is why I do not like to touch that counter

OT a bit.

I understand some time back you expressed your interest to invest in CHHB oil palm related investments.

Aren"t CHHB have some similarity with Boustead one ?

Mind to share more.

This post has been edited by SKY 1809: Jul 25 2009, 12:19 PM