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 REIT, real estate investment...

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Jordy
post Jul 22 2008, 05:58 PM

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QUOTE(cherroy @ Jul 22 2008, 05:18 PM)
Take both lah if wish to, then no headache. haha.  biggrin.gif

In good time, Axreit will perform better than Atrium because of liquidity issue and more fund managers can chase after it. For liquidity issue, Axreit and Stareit is preferred.
But Atrium will have higher yield because of higher risk compared to Axreit, as Atrium's warehouse is tailored made for its tenants, so if tenants don't renew their lease then there are some expenses need to be spend to modify its warehouses.
http://www.atriumreit.com.my/
http://www.axis-reit.com.my/

It is about risk/reward ratio, higher risk high yield its offered. With net yield At 9.5% is very tempting, no doubt about it but Axreit isn't low either at around 7.9%. If gov decide to reduce the witholding tax which this industry has been lobbying since last year, but gov rejected, so this year only a remote chance only, then yield can be much higher. Gov needs to reduce the witholding tax in order to lure more people into it especially for foreigners now at 20% which is considerably high in regional standard especially compared with Singapore.

But downside currently for reit is potential high interest expenses on their loan due to potential higher interest rate.

Buy on your own risk, not mean to recommend any one of them.

Btw, I got both of it.
*
Thank you cherroy for your quick and lengthy reply smile.gif
Well, I have both of them as well, but just thought I would like to add somemore into my portfolio.
So, now I am weighing on both to see which one would give me better returns, say if I place my money there for 10-20 years.
To better facilitate this discussion, let me give my real situation:

AXREIT - I have 5,000 units at RM1.76.
ATRIUM - I have 10,000 units at average of RM0.825

Now, I am thinking of getting either 5,000 additional of AXREIT, or 10,000 additional of ATRIUM.
If you are in this situation, what would you choose? tongue.gif

QUOTE(ante5k @ Jul 22 2008, 05:25 PM)
i recommend 1/3 of axreit , stareit and atrium each .
*
I personally do not like STAREIT that much because it relies too much on YTL.
If YTL has problems, then the earnings of STAREIT would not be that pretty either wink.gif
Jordy
post Jul 22 2008, 08:17 PM

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QUOTE(Neo18 @ Jul 22 2008, 08:07 PM)
aiseh man. this is easy la JORDY.

if atrium dont come back down to 0.75, the obviouse choice is to add up to AXREIT @1.61 ...

anyway, i advise u to have at least half of each. so go get AXIS

at the moment i have

90000 unit ATRIUM @ 0.94
50000 unit AXIS @1.67
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I see, so you have a balanced one between them both ya? tongue.gif
I can do that as well, maybe 10,000 of ATRIUM and 5,000 of AXREIT, but right now I am starting to research into DJIA counters.
I have to set aside at least RM30,000 for my investment there, but maybe I would want more because I don't want my money here.
I can't stop my temptation if I kept my money here, so need to keep somewhere FAR away tongue.gif
Jordy
post Jul 22 2008, 09:20 PM

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QUOTE(cherroy @ Jul 22 2008, 09:10 PM)
If I were you, I would add up on Axreit first as my style is always only average down if there is signficant gap between. Anyway just my preference only, doesn't necessary a right way to do.

But wait, those purchased price already being given previous distribution already or not, aka already take some distirubtion in the pocket already?
*
Nope, I have not taken any distribution from them yet tongue.gif
Just bought them in this Q. Hehe.
Jordy
post Jul 25 2008, 11:17 AM

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Yeah, I am also thinking of getting ATRIUM, but I will wait for the BNM decision. It is supposed to be today ya? smile.gif
Jordy
post Jul 25 2008, 03:33 PM

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QUOTE(cherroy @ Jul 25 2008, 03:14 PM)
Atrium has a nice run up from the 0.75 level.  rclxms.gif
*
Yup, that is so sad for me cry.gif
But nevermind, it should come down again soon, especially with such uncertainty icon_idea.gif
Jordy
post Jul 25 2008, 04:41 PM

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QUOTE(cherroy @ Jul 25 2008, 04:20 PM)
Bought Axreit 1.60.  icon_rolleyes.gif
*
Haha, too bad you missed the boat for RM1.59 tongue.gif
Jordy
post Jul 25 2008, 05:49 PM

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QUOTE(cherroy @ Jul 25 2008, 04:50 PM)
Afternoon session all only done 1.60, so settled for 1.60. There is a big Q of 1,000+ on 1.59.

Drop further buy again.  brows.gif
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I was tempted to buy at RM1.59, but for some reason I think I'll go for ATRIUM, although this will definitely lower my average for AXREIT to around RM1.70.
Jordy
post Jul 25 2008, 09:27 PM

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QUOTE(cherroy @ Jul 25 2008, 09:06 PM)
Personally, I never care much how much can I average down. I care how much they are giving me every year in term of dividend yield/distribution in term of yield.
I never look at my average cost, I treat every purchse individually. Just like I bought 10K of share of Axreit at 1.60, then this 10K cost is 1.60, while another 10K was bought at 1.70 then it is 1.70. It is much easier. Just my perference.

Reach 2.00 or 2.+ (hopefully) then all sell together in longer future time. Even sell at cost, also gain because it is much better than putting in FD as every year take more than 7% already. That's how I treat them.
*
Good pointers my friend rclxms.gif I hope I was having the same mentality as you, but I don't know why I am always looking for capital appreciation.
That is why I never really bothered to look at yields for the counters I buy. I treat the yield as an added bonus only smile.gif What I care for is to get my cost as low as possible for a counter with strong fundamentals and possibility to appreciate is strong. Looks like we have different mindsets smile.gif
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post Jul 25 2008, 10:51 PM

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QUOTE(cherroy @ Jul 25 2008, 09:40 PM)
I have this kind of mindset because I set up or invest in those stocks in order to have passive income as compared money put in FD, while capital appreciation is almost impossible to be predicted when it will happen or not, when they do go up, I treat is as bonus. The other way round than you.  tongue.gif  biggrin.gif

That's why I look for those fundamental sound that can deliver consistently throughout years. This is why also I find very hard to buy Airasia (zero dividend) although interested in it because of low price recently. Also historical proves that dividend stocks always outshine growth stock over the long term generally (although not all), mainly because growth stocks tend to tumble quite heavily when economy perform poorly time.
*
Haha, really having totally opposite mindsets tongue.gif But our individual aim will not determine who's right and who's wrong. Still, we are looking for long term investments. REITs can be used to compound our savings quite safely, as the price rarely moves, we can keep reinvesting the dividends for compounding, without affecting the yield a lot smile.gif
Jordy
post Jul 26 2008, 03:11 PM

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QUOTE(cherroy @ Jul 26 2008, 02:26 PM)
But we have the same aim, making more money. Haha. biggrin.gif
*
That is very true my dear friend smile.gif Well, now with the IR unchanged, I think there should be some upwards movement in REITs, ya?
If that does happen on Monday, I will surely wait for the price to come back down again. I am looking for prices in the range of RM1.60-RM1.65 for AXREIT, and RM0.75-RM0.75 for ATRIUM biggrin.gif For now, should take a rest from buying REITs in my opinion.
Jordy
post Jul 31 2008, 01:32 AM

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QUOTE(YuNGSeNG @ Jul 31 2008, 12:23 AM)
May i know how to start invest in REIT ?

Equities = go broker house such as TA , MaybankInvest , OSK188 , Heong Leong , CIMB and so on .

REIT = go where register ?
*
REITs are listed trusts, and you trade them like any other stocks. There is no registration needed to begin with.
Jordy
post Jul 31 2008, 12:17 PM

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QUOTE(YuNGSeNG @ Jul 31 2008, 11:59 AM)
How to know which stocks is REIT ? Is it all of the REIT under MESDAQ ?
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I believe if you open StarBiz newspaper, you can see a huge "REIT" section, right? wink.gif
They are just right under Main Board my friend.
Jordy
post Aug 1 2008, 10:59 AM

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QUOTE(cherroy @ Aug 1 2008, 10:00 AM)
Last week my 1.60 bought on AXreit can buy me a Tai Thong dinner already.  whistling.gif  biggrin.gif
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If you bought 10 lots, then yeah can buy Tai Thong already. Haha.
So, you did buy 10 lots ya? Damn rich la you cherroy "uncle" tongue.gif
Jordy
post Aug 5 2008, 05:38 PM

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QUOTE(cherroy @ Aug 5 2008, 11:17 AM)
Yup, if annualised distribution is 14.8. You calculation basically right.

It has proposed a private placement of 120 million new share.
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Aiyoh, more dilution to come wink.gif
Any idea what is this money used for?
Jordy
post Aug 5 2008, 06:08 PM

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QUOTE(ante5k @ Aug 5 2008, 05:55 PM)
wei... stop diluting my favourite reit stock lar ...

edited to add ... okaylar, u can dilute but make sure my dividend go up up up. and give bonus shares to existing holder from the 120 million smile.gif
*
If the money is used for better yield accretion, then I wouldn't mind the dilution. We have to see first what is the money used for to make a better decision.
Jordy
post Aug 5 2008, 08:48 PM

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QUOTE(cherroy @ Aug 5 2008, 08:10 PM)
The money raised will be used to reduce the borrowing and possible newer acquistion. New acquisition might lead to higher earning ahead to minimise the dilution while making it more diversify and more sizeable to attract instituitional investors particularly foreign investors. In Reits, size does matter to attract instituition investors and foreign fund managers.
At time being, Malaysia reits still consider very small in size compared to overseas. You need some reit size that at least more than 1 billions and above to attract large instituitional investors and foreign fund managers.

In the view of reduce borrowing, it is good for the company if future interest rate is going to rise. But dilution might be a disadvantage for the existing shareholders. But if those private placement is being placed out at higher price (buyers willing to take at high price) that it can be view as positive factor as well.
I think they will reduce the borrowing in order to have more spare capacity in term of gearing for future new acquisiton. My opinon only.

Normally, private placement will be placed at an average market price.

So only time will tell how it will affect and the dilution situation. Previously the 50 millions private placement is not reducing or diluting the existing shareholder yield instead it increased the earning from the new acquisition made.

In the future, monitor how the dilution or precisely the EPS or distribution per share, if the yield is still staying at roughly 7 or 7% above, while FD rate stay stagnant then I find not much reason to sell it, but if dilution problem occur resulted lower EPS then might consider to sell it if FD rate is going to rise (which I highly doubt it would be more than 0.5%)
No, private placement mean private already mah.  tongue.gif  biggrin.gif
*
I agree with your first point on further acquisitions. That was why I said if this would be yield accretive, then it would be good. Yield accretive aside, we need to see if this acquisition would increase or decrease their average ROI. This is the main driver for the price in my opinion. Say now their average ROI is 8%, but if the acquisition has an ROI of 7%, that is not good at all. They should aim to get at least 8% or more to sustain their earnings. Then the dilution effect will really disappear. If the acquisition resulted in lower ROI, then we will still see the dilution.

Just my 2 cents smile.gif
Jordy
post Aug 5 2008, 09:29 PM

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QUOTE(cherroy @ Aug 5 2008, 08:55 PM)
Yes you are right. If the company management is doing like as you said, then they are not doing a good job at all.
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Ah, I finally understood another asset class tongue.gif
Before this, I understood little of stock markets even.
So, I urge everyone who wants to invest, invest in something you "UNDERSTAND" biggrin.gif
Jordy
post Aug 7 2008, 04:23 PM

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QUOTE(ante5k @ Aug 7 2008, 12:49 PM)
anyone know when is the ex-date for axreit?
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sweat.gif Why not check the announcement?
15 August.
Jordy
post Aug 8 2008, 01:05 AM

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QUOTE(georgechang79 @ Aug 8 2008, 12:36 AM)
I checked with my broker though, she mention that Amfirst has no history of issuing dividend so i chicken out last minute. Instead queue for Atrium and Axreit but both transaction also no takers due to unexpected market uptrend.  cry.gif miss boat again.  doh.gif
*
What's the rush? There are still chances when the IR is hiked icon_idea.gif
Jordy
post Sep 11 2008, 03:51 PM

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Any of you guys attending AXREIT's shareholders' meeting on 24th September at Equatorial Hotel? Maybe we can have a LYN-AXREIT gathering tongue.gif

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