So, does this mean that my REIT dividend after the witholding tax is become a "tax exempt income"? Just like those single tier dividend from companies?

Actually I want to find out if REIT's dividend need to report as source of income or not?
(understood it's not claimable, then no matter if you fall under 8% or 19%)

Especially for those reported the tax income through Electronic / internet, system will auto calculate your tax amount after input of total income. I don't think there's any special column to indicate the income as REIT dividend and exclude from tax. The question here, should we exclude REIT dividend as our source of income?

For me, since reit companies already withhold the mandatory 10% tax and the net I recieved need not pay for tax anymore, I therefore will not declared to IRB.

Agree on this. Otherwise, we will be doubly taxed.

i dont include my reit income in my tax form.

Reit does partly follow market sentiment, after all everything (in short term) follow general market sentiment, even rubbish stocks also can go up in a bullish market.

But for local reit, due to low liquidity, a lot of time, it tends not to follow market sentiment. As reit still limited to some investors interest only, particularly from fund managers that look for fixed income investment like insurance funds, while only little retailers are participating in it.

Reit fall spectacularly during the crash (in fact everything fall drastically back then) especially in US and UK, because of property market bubble burst, while they are highly geared than what local reit is, and some unable to refinance the borrowing due, which need to fire-sale their portfolio properties at the wrong time so it is not without fundamental change. For local, with serious recession threat, it means future rental or tenant lease renewal could be problematic (that's why local reit also failling quite a lot), Atrium is the classic example whereby DPU falling sharply due to tenant moving out, so fundamental does change.
But right now with recovery and improvement all across, so does prospect of reit.

Axreit is under private placement (50 million shares) just month ago which pare down the borrowing.

Interest going up or not, reit company is not paying back all the money they borrow one (they don't have the money to pay for, as 90% of income is always distributed to the shareholders already). Always refinancing and roll over the loan when due, except through private placement to raise cash or sell the portfolio properties, only they can able to repay the all borrowing

Yes, interest rate goes up does hurt the attractiveness of reit, while mean more interest expenses incurred.

But if interest rate goes up, it means economy is doing well, so generally properties market also in good shape and potential better property value appreciation as well as better negotiation price for the rental.

Can anyone share any articles of REIT dividend income and personal income tax?

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Added on October 14, 2009, 11:15 pmWhat do REITs do with the balance 10% net earnings? Put in FD?

This post has been edited by simplesmile: Oct 14 2009, 11:15 PM

Reit income is subjected to witholding tax, and not applicable anymore on personal income tax, as far as I know

There won't be double taxation.

Could be, Some do give 95% or 99% as well. Company still need some cash for operation.
The 10% of rental income is peanut figure compared to its overall borrowing. Cannot rely on the 10% left to pay for the borrowing.

Most reit property has yield around 9-10% ie. your property worth 100 million, expected rental income is around 10 million pa.

So if you use borrowing to finance the purchase of the property at 50% gearing, it means you get a loan of 50 million to finance it. Your rental income is 10 million and left 10%, only 1 million. It takes 50 years accumulation before can repay the full amount of the loan. So you cannot rely in the left 10% for repayment of the full loan.

You service the loan, but not pay in full. Refinance is always the key of reit company for its borrowing. That's why reit fall drastically when credit market freeze time during last Oct. as without refinancing available to them when due, they won't able to repay the borrowing, and need to fire-sale their properties.

This post has been edited by cherroy: Oct 14 2009, 11:29 PM

Axreit proposed dividend:

Proposed/Declared dividend per share (Subunit) 4.06

Remarks :
1. Earnings per unit for the current quarter ended 30 September 2009 is based on the weighted average of number of units in issued.
2. Included in the proposed distribution per unit for the current quarter ended 30 September 2009 is the third interim distribution of 2.82 sen per unit paid on 30 September 2009.

So how much is the next dividend?



This post has been edited by protonw: Oct 20 2009, 09:47 PM

protonw,

Take note that AXREIT is not paying out dividends this quarter. What it means is, the proposed distribution for this quarter is 4.06 sen, of which 2.82 sen have been paid out in advance. Therefore, the balance of 1.24 (4.06-2.82) will be paid out in the next quarter, together with Q4's proposed distribution.

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Added on October 20, 2009, 11:04 pmBy the way, AXREIT's EPU this quarter was maintained at its pre-placement EPU. This is a good sign as no dilution took place. We could see interest picking up in AXREIT again these few days as investors' confidence grow. AXREIT could test the 1.90 level in these few days.

This post has been edited by Jordy: Oct 20 2009, 11:04 PM

Glancing at the report seems to indicate that most of the arrows are pointing upwards. NAV also has been revised downwards, though still below the market price. AXREIT seems to be the only M-REIT displaying this attribute.

This post has been edited by whizzer: Oct 20 2009, 11:40 PM

Is there a typo? NAV revised DOWNWARDS? Shouldn't upwards be better? Why revise downwards when it's still below the market price?

This post has been edited by simplesmile: Oct 21 2009, 12:04 AM

my guess is because of the new placement shares.

The NAV for AXREIT has indeed been revised downwards a little. It used to be 1.758 before the placement. But we should not worry about the NAV as it would be revalued over time. The only way for the NAV now is up as the recession clears.

Today the price is on upward again, hope it would touch 1.90 by weekend.

Axreit's weekly chart still holding up nicely in an uptrend.

I haven't go through the Q report, but there is no revision on its properties value, if not mistaken, so there won't be any change in the real value of properties.

The decrease of NAV could be dilution effect on private placement which I don't think will be too much because private placement being priced at around 1.6x. (if I remember correctly)

Correct. The NAV decreased solely because of dilution. The dilution is nothing to worry about because it fell only 0.02

ATRIUM is due for 3rdQ result & its Cum Div.
Back on track at 2.1sen again ??

actually, i'm expecting 2.2 to 2.4 cents.


will c in a few days time

I do thing a bit too optimistic for 2.2~2.4, anything DPU around 2 cents is good enough already.

My opinion only.