I got, why?

thinking of getting. at 0.85 now. you got at a lower price?

No,

I got it before distribution at 0.90. Thinking of buy some but don't want to go lower.

got another few lots of axreit at 1.65

ATRIUM good buy.

NAV 1.0002
market price 0.95

It is quite norm for reit to trade at below its NAV value, ranging from Stareit, Atrium, Amfirst etc due to bearish market sentiment especially towards property sector currently. What matter most on the reit is its yield and consistently yield or yield improvement throughout years. NAV come second.

This post has been edited by cherroy: Mar 26 2008, 10:34 PM

With exception with Axreit?

NAV and dividend yield is inter-related. If the market price is lower than NAV, it will assume higher dividend yield. By just looking at dividend yield alone without NAV is pointless because both of them are equally as important.

Yup, both are important, just I said it (NAV) comes second, yield is the primary factor.
How much the dividend yield is related to its dividend distribution and its share price, (aka dividend/share price) not related to the NAV.

Eg.
If Axreit price is at 1.63 (same with its NAV), while EPS is around 15 cents , yield= 9.2%
If UOAreit price is at Rm1.38 (same with its NAV), while EPS around 8.8 cents, yield = 6.4%

So even Axreit traded above its NAV at 1.80 (yield = 15/1.80 = 8.3%), it is still more attractive than UOAreit price at 1.38.

Another eg would be AHP2.
NAV at Rm.92 but only trade at RM0.50. Purely on NAV, it seems very attractive, but it only could generate 2.4 cents of EPS, which makes the yield not attractive that's why it is traded at Rm0.50 (around 5% yield) instead of near its NAV. Reit or share price will adjust according to EPS which is the primary factor in the share price movement, NAV come second.

Above is just a simple comparison, as property quality and potential for higher rental in the future and property price aprreciation, management issue etc also can be factors to be considered.

As reit is not as same as normal stock, whereby room for upside for normal stock is much greater than Reit, investment in reit is about getting yield which is higher than FD rate consistently throughout.

Don't get me wrong, NAV (for reit, normal stock different story) also a important factor, as it is the real value of the property based on current market price and you don't buy at overly on top of it then most of the time will be fine.

This post has been edited by cherroy: Mar 27 2008, 11:19 PM

cherroy, do you know when is atrium payment date?

Atrium usually pay quarterly one, within 2 months time after the quarter ended.

n You can go into real estate investment trusts ( REITS )if your tax bracket above 15%.

n There are 11 REITs listed on the Main Board.

n The tax on dividends given out by these property-related investments are taxed at 15% as compared to tax on dividend at 26% ( under the new single -tier dividend system )

n Only tax brackets exceeding 15% would enjoy some tax savings by investing in REITs

n Since the distributions received by individual taxpayers have been subject to that 15% , the taxpayers are not required to declare the amount in their tax return.

n Tax deduction:

Your tax saving is the difference between your personal tax bracket and 15%

cherroy,
Need to check with you on above statements.

1. Izzit all REITs counters in bursa using single tier dividend system in 2008?

2. REITs has lower tax 15% compare to others counter which is 26% in 2008?

Thanks.

Brother, wrong already.

Reit is tax exempted from income tax.

The 15% tax is witholding tax, which is one off, can't claim back nor whatsoever. So it has nothing to do with one is below 15% or even non-taxable, it is still being taxed at 15% as far as I knew.

Axreit is inching up

i bougt 7 lot of ATRIUM @ 0.92!!!

7 lots only ? the brokerage fee to cost ratio very high ler.

7 lots only?

May be he is talking of 7 x 1,000.

Atrium released its latest Q, and will give quarterly distribution of 2.05 cents.

i thought standardize in this forum for1 lot = 100 shares already

sorry i was in china.

i meant 7x 1000 lot

but how come their latest result so disappointing? i was expecting 2.2/2.3 area.

Cherroy, any news? should i dispose then?

7000 lots? it should be 7 x 1000 shares

This post has been edited by ante5k: Apr 23 2008, 12:42 PM