I am only a small small player lah by market standard.
Hey, OT too much already.

Atrium drop to 0.98, not much buyers, sellers are forced to sell at lower price. I smell Axis sellers might coming out, if really want, time to queue to try for your luck. I would queue at 1.80,
Would eyeing at Amfirst also at 0.88 (yield about 8.+%), already had some, while Stareit took too few already last time out at 0.895 and 0.90, would add more on it if oppotunities come.

Another point to make, in term of foreigners view, Reit is not their favourite at the moment, due to the property problem in US and UK. Reit price at there has been hit hard with more than 30-40% drop in price.

This post has been edited by cherroy: Jan 11 2008, 11:28 AM

Told you, smell it already.

No insider news lah, just based on yield 7.5%. It is the most diversifed and more aggressive Reit stock out there. Maybank gives TP of 2.20 while Hwang 2.60.
Will buy some in the afternoon.

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Added on January 11, 2008, 2:17 pmYes, treat is like secondary FD or like buying properties then collecting rental.

This post has been edited by cherroy: Jan 11 2008, 02:17 PM

The risk is as same as owning a properties but added up another issue of properties management, you need good properties management team to look after your properties.

Yup, I knew, that's why I still keeping it, at this point, not for me to add on yet, as my previous purchased was at 0.965. So may be lower than it will be better for me. Also seeing whether the newer Q4 report is good or not, if good at 2.2 cents or above, indeed it is a good yield.
Another point, it is traded at relative low volume only, 45 biji only. Since it is a low liquidity stock, several biji of sell or buy can easily move the price already.

This post has been edited by cherroy: Jan 11 2008, 03:17 PM

The newer accounting standard will let the properties being revalued once every 3 years.
No, there is no Reit for mid valley and 1 Utama. Only for Starhill (Stareit), others mostly in offices and industrial.

Since it has revaluation every 3 years, there is no undervalue issue in term of Reit NTA. Look at NTA for the clue for the valuation.

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Added on January 11, 2008, 4:34 pmNeo,
I just bought Axis at 1.80 also, queue another 5 biji at 1.78.


This post has been edited by cherroy: Jan 11 2008, 04:34 PM

Somebody eager to sell but there is no buyer in the market. So the price last transaction jump from 0.98 to 0.95 straight away with 5 lots are being done only. Basically it is due to low liquidity issue, price can jump up and down very drastically due to not many buyer and sellers around, if someone hold some amount of stocks and eager to sell or buy in a bit large quantity, it can move very much.
If you want it to move from 0.95 to 0.98 then buy 1 lots already can.

The most important is to watch its latest DPU, if over 2.2, the went down in price doesn't need to take much care of.

This post has been edited by cherroy: Jan 14 2008, 04:18 PM

Final is 7.49 + 0.4 but your forget another 1st interim of 0.75.

Total will be given out should be 7.49 + 0.4 TE + 0.75.

Also net for final is (7.49 x 0.85) + 0.4 = 6.766
1st interim = 0.75 x 0.85 = 0.6375
So total net = 7.4

Reit is not subjected to normal income tax (27%) but on witholding tax.
Witholding tax for local is 15%, foreigners 20%.

OK lah, much better than FD

For net yield (after deduct the witholding tax) 6.766/1.8 = 3.76% (for half year), annualised = 7.52%

PS: The actual total is gross DPU 7.53 + 6.1 (first half, consider a bit poor) = 13.6 cents for Axis

If really want to compare, reit surely lose out to normal stock, as normal stock price has plenty of room for upside, but fo reit it is all about yield, if higher yield that people chase after, price goes up, if not stagnant mostly. Reit is not as same as normal stocks, risk is lesser than stocks, but potential return is also lesser than stock. If one aims for 20-30% pa return rate, then reit is not a place to be.

It is like FD - Bonds - Reit - Equites.

Reit is in between.

This post has been edited by cherroy: Jan 14 2008, 10:15 PM

Sorry, my mistake, it shoud be 7.49 + 0.04 (not 0.4) + 0.75

So net final is 6.4

Total net = 7.04.

Appology for my mistake.

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Added on January 15, 2008, 10:44 amYes, better to choose those management company that doesn't have clash of interest between the tenants and company management.
Those doesn't have conflicting interest Reit company tends to have high premium or high demand from the investors, while those have related one tends to have more discount on price as investors are more alert on it. Market generally is quite efficient to take care themselves on this especially in overseas when Reit market is more mature.

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Added on January 18, 2008, 9:43 am

This post has been edited by cherroy: Jan 18 2008, 09:48 AM

Neo,
Atrium result is out, it is in line with expectation, 4Q earning 2.16 cents.
DPU is 2.3 cents.

An Ok yield.

Pana,

Rexit is not a Reit counter. Just company name quite near to name Reit, it is not a Reit counter at all. It is a Mesdaq counter.

Yup, may be personally will buy at 0.88 again as it will have first interim distribution on the Jan or Feb period, should be around 3.4 cents based on the projection.

It depends how much yield you aim for, DPU is expected at around 13.5- 14.xx cents for the full year.
NTA at 1.625. So judge your own.

Net tangible asset.

Their total asset worth based on their book value.

Distribution per unit, so it is better higher or lower?

Yes.

Somebody eager to sell but not so much buyers around so price distress a bit. Basically it is a 9% yield now.

This post has been edited by cherroy: Jan 31 2008, 02:10 PM

Those are private placement, not open for public. It was issued at 1.80 just few week ago.

My latest buy was 1.80 prior before ex-distribution.

Take your time, buying Reit don't need to rush one.

This post has been edited by cherroy: Feb 2 2008, 04:07 PM

In a economy recession time, nothing will be spared from downturn except for gov bonds or treasuries (like US 10 years bond). There is no such thing (can be exceptional due to individual company issue, just talking generally) that equities or reit can escape from a economy downturn or recession, just the degree of downturn is less if you pick up the right or defensive nature type of investment.

Reit will be affected by econonmy slowdown as property market generally is quite bad in that time, also harder to find tenants as well as rental downward pressure. However, some reit consist of properties that might be well located and won't have much rental and tenant issue even at economy slowdown time, then those type of reit are more able to withstand the economy pressure.
As reit is all about the yield, the higher yield it is, the more attractiveness to investors. You need to have a comparison between interest rate and reit yield which is one of the major factor that can decide how much the reit should be priced.

Locally, reit company won't be too cash rich as reit company need to distribute at least 90% of their earning to their shareholder each financial year. < -- which also one of the attractiveness of reit.

Reit is not as same as normal equities or shares, can't compare like to like, it is like orange and apple issue.

To analyse the reit, you need to go through their properties portfolio as buying reit is as same as buying a property then rent it out, just instead you are doing yourself, you get third party (the reit management company) to do it for you.

There is a MReit blog to summarise the local reit company regarding their yield and information which had beend posted by out forumers here. Check it out.



This post has been edited by cherroy: Feb 3 2008, 06:32 PM

It is the downside to have a low liquidity counter.

As said somebody are eager to dispose their holding but can't meet enough buyers in the market, so price will be distress and uder pressure until the sellers are clearing out.
For a stock/counter that has low liquidity, even it is cheap and attractive in term of valuation and yield, fund managers can't buy it. For the like Atrium as a reit which is not popular among retails investors, so sometimes it is a bit difficult to find enough buyers for sellers if the sellers are holding quite amount of shares one. Low liquidity stock price is highly depended on retail investor willingness and interest to buy.

For their latest financial report, it shows a 8.8% can be expected in near future.