It is a dilemma actually for somebody that holding it while still wish to buy more.

On one hand, wish to see its price is firm and stay there strongly. Nobody wants to see the price dropping even for the like long term investors, even though don't quite be bothered about it.
On one hand, wish it to drop lower so that newer buying price will chalk up good yield.

Kind of contradict, isn't it.
Never mind, human is always like that.

Merry X'mas.

Holiday season coming out for until next year.

Sellers finished their stock.

Santa gives you some present mah.

If the DPU stays at 15 cents for 10 years, then don't need to sell at all.

You take peanut, I wait for bigger banana after Feb.

Since Axreit has risen, so temporary won't buy anymore, next target for reit personally would eye now would be Tower reit. 5 cents DPU will be coming out as same time as Axreit. Another 10+% yield stock if nothing goes wrong.

Neo 'sapu' a lot already, my guess he owns not less than 500 lots of it.

Just he may be wanting more.

then it is 988 lots. Nice figure, 'fat fat'

Only by Feb, will know, need to wait they announce the financial report which generally will be released in around Feb.

Ex-date for div (or more precise DPU) generally won't later than end of March.

This post has been edited by cherroy: Jan 5 2009, 01:36 PM

Arreit liquidity is low, and seldom being traded at all. So even 1 lot can swing the price greatly, as there is large gap between buy and seller most of the time.

They will annouce the financial result on 22 Jan. While ex-date generally around mid to end of Feb.

There is report some forumers posted, that funds are existing particularly foreign one.

There are lot of fund houses are holding this stock range from various insurance funds, UT fund to Valuecap etc.

Gearing is mostly in the region of 20~30% for most, as SC guideline on Reit is that they can't have more than 50% gearing.
Refurbishing and uplift facility cost are spents on every year which can see from the annual report as a term of uplifting expenses which already affected the profit in the first place.

So at those gearing ratio, don't think until it is not manageable. Unless need to spend big for the major overhaul of the whole building.
Yes, no doubt, those listed issues are the risk involved.

But at 10%+ yield for some reit (provided it doesn't drop too much in the near future, as some slowdown effect will be felt by reit as well), it is quite an attraction, also most reit are trading at least 30% discount to its NAV at current pricing.

They cannot be more than 50% in the first place, which is the SC guideline and regulation imposed by SC.

Hektar, I don't follow Hekar, so don't know.

Axreit, it is about 30~40% gearing before the proposed private placement, if not mistaken.

Axreit financial report is available on its website, so can calculate its debt/equity ratio easily.

Oppss, my mistake you are mentioning debt/equit, not the overall gearing.

The reit guideline is about below 50% gearing, not debt/equity.

Their debt/equity is more than 50%, as Axreit lastest Q has 200+ million borrowing and they have abuot 255 millions share issued. Total asset owned is 600+ millions, so gearing is about 30~40%.

Yes, just like you mention earlier, some dilution will occur as they are proposing 120 millions private placement. But those private placement will able to reduce the interest expenses on the borrowing, so it is not that bad. At one side EPS being diluted, while on other side, total earning might be increase due to lesser interest expenses.

It is better those private placement being or able to be placed out to reduce the borrowing.

This post has been edited by cherroy: Jan 12 2009, 03:44 PM

Yup, my mistake on my previous post.

UOAreit is giving out 5.5 cents, which is the first to release financial report in reit sector.

Because the more he buys, the more he gain through the differentiate between BLR or his margin interest and the yield reit is paying (which is more than 10% in most reit right now), provided reit yield doesn't drop below the margin intereset.

It is actually similar you bought a house and rent it out, while the tenants are actually paying your housing loan while still getting extra positive cashflow out of rental collected.
So as long as yield is above the loan interest, then everything looks ok.

It is widely expected to cut 0.25%. Although some speculate 0.5% and chance is there, still view it has about 20% chance only. But in longer term, BLR expected to go to 6% or below it.

What info do you want?

DPU is 5.5 cents, 4 cents taxable + 1.5cents TE.

EPS lastest Q is 2.90. NAV is around 1.38.

Every bank got share margin facilities which is widely and easy available.

But I don't recommend it. Only for those knowing the risk of it and willing to take those risk.