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 REIT, real estate investment...

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darkknight81
post Oct 29 2008, 08:14 AM

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Axis Reit

Number of unit on 2007 = 205 million units

<<
(iii) proposed placement of up to 120,000,000 new units (“Placement Units”), representing approximately 46.9% of the existing units in Axis-REIT in circulation at a price to be determined later (“Proposed Placement”);

(iv) proposed increase in the existing approved fund size of Axis-REIT of 255,901,000 units to a maximum of 375,901,000 units (“Proposed Increase In Fund Size”).The Proposed Reclassification, Proposed Amendments, Proposed Placement and Proposed Increase In Fund Size are collectively known as “Proposals”.
The details of the Proposals are set out in the ensuing sections.

>>

My concern is :
1. This will diluted the DPS of Axis Reits.
2. How much is the issue price? If lower then market price then that means it will drop further right? How about if the issue price is higher? Need some expert to explain.


darkknight81
post Oct 29 2008, 06:45 PM

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QUOTE(fergie1100 @ Oct 29 2008, 06:51 PM)
1) Can somebody explain what's DPU & NAV? I can't find DPU but i found that NAV stands for Net Asset Value....
2) Does NAV have to be higher than the current price?
3) Basically the higher the better for NAV & DPU
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1. DPU = DIVIDEND PER UNIT same as DPS (for share)
2. Not necessary. FOR Axis case, the NAV is higher than the market price.
3. Yup but not necessary to be true. The other things which is far more important is the future prospect of the company and also the management.

This post has been edited by darkknight81: Oct 30 2008, 07:54 AM
darkknight81
post Oct 30 2008, 03:37 PM

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Seems like Atrium is not a bad choice either rclxub.gif Pening kepala want to choose axreit or atrium sweat.gif

This post has been edited by darkknight81: Oct 30 2008, 03:38 PM
darkknight81
post Oct 31 2008, 07:51 AM

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QUOTE(normanTE @ Oct 31 2008, 02:16 AM)
malaysia reit have no enough data which i mean 10 yrs atleast. it just lowsy in term of financial data record,
despite good return at moment , i believe will cool down next year.
reit wont give bonus issue in short unlike they are so well manage and acquire new building,
imagine most building in malaysia overbuild and old one will leave abandone, like subang summit, kl plaza, those are near abandone. not logic to own them.
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You got to see the locality k....MOST of the reit just listed last few years....so what do you expect for 10 years record...Sure it will cool down during recession but it will go up again k..
darkknight81
post Oct 31 2008, 10:16 AM

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QUOTE(SKY 1809 @ Oct 31 2008, 09:50 AM)
Our export is down by 40%.

Those in the warehousing could be hit.

And warehousing business was badly hit in Year 97/98.
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Yup. I am targeting Atrium at below 40 sen if possible. Axreit RM 1.00 OR below.
darkknight81
post Nov 6 2008, 12:34 PM

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QUOTE(cherroy @ Nov 3 2008, 02:47 PM)
Yes, tomorrow is the last date, you have to buy before ex-data to entitle for the dividend/DPU.
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Axreit still trade at RM 1.28 VERY SOLID sweat.gif
darkknight81
post Nov 6 2008, 03:42 PM

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QUOTE(cherroy @ Nov 6 2008, 03:06 PM)
Amfirst giving out 4.2 cents.  icon_rolleyes.gif
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Cherroy you seems holding all type of REITS YA sweat.gif
darkknight81
post Nov 6 2008, 10:11 PM

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QUOTE(espree @ Nov 6 2008, 09:55 PM)
waiting to buy more?
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Not yet buy tongue.gif i like to buy at one shot... laugh.gif Wait for the correct time
darkknight81
post Nov 6 2008, 10:15 PM

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QUOTE(espree @ Nov 6 2008, 11:13 PM)
ur target price?
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RM 1.10 and below
darkknight81
post Nov 6 2008, 10:24 PM

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QUOTE(espree @ Nov 6 2008, 11:18 PM)
my target price is RM0.80 but I wonder will it drop till there.
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Maybe biggrin.gif by the time KLSE will be below 500 point sweat.gif
darkknight81
post Nov 6 2008, 10:38 PM

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QUOTE(espree @ Nov 6 2008, 11:30 PM)
then I guess I shud set higher or maybe I just buy more of atrium. rclxub.gif  rclxub.gif
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As i always say don compare price between counter on the market price....Even though both of them are Reits
Axis has far more properties compare to atrium. Atrium properties only limited on warehouse. Whereas, Axreit is more aggresive in their expansion their current properties include office, warehouse, shopping complex ...

If our economy getting worse, atrium will get harder hit compare to Axis i think as it has only warehousing properties...and warehousing business will get hard hit during recession. Not to say Axis can spare from it, but it is more diversify and the impact maybe will be not so great compare to atrium...Base on current pricing on both Reit, their dividend yield are almost the same. But i think Axis has stronger downtrend support compare to atrium.

One more thing, when market is good axis will certainly surge more compare to atrium which means you can have more capital gain.


Just my two cents
darkknight81
post Nov 6 2008, 10:57 PM

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QUOTE(espree @ Nov 6 2008, 11:52 PM)
I'm a newbie.
I recently bought a stock for DY. Now its actually performing well and i'm tempted to sell as it already gain more than the dividend.
any advice?
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What stock you bought? what price you bought and current price?
darkknight81
post Nov 6 2008, 11:14 PM

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QUOTE(espree @ Nov 7 2008, 12:08 AM)
Guiness at 4.70  now 5.15.
Dividend 0.31
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Ic this is a very defensive counter. No comment on this as this counter is a long term play. Only you yourself can make decision on whether to sell or not biggrin.gif


But you got to take care of the 26% tax which cannot be claim back anymore... For example if your stock DY is 10% but in actual fact it is only 7.4 %...


darkknight81
post Nov 7 2008, 07:53 AM

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QUOTE(espree @ Nov 7 2008, 12:22 AM)
I see. so if by reading this page:

Entitlements (Notice of Book Closure)

GUINNESS ANCHOR BERHAD
Stock Name
GUINESS
Date Announced
03/11/2008
EX-date
27/11/2008
Entitlement date
01/12/2008
Entitlement time
05:00:00 PM
Entitlement subject
Final Dividend
Entitlement description
Final dividend of 14 sen per 50 sen stock unit tax exempt and 17 sen gross per 50 sen stock unit less Malaysian income tax at 25%.
Period of interest payment to
Financial Year End
30/06/2008
Share transfer book & register of members will be
to closed from (both dates inclusive) for the purpose of determining the entitlements

Payment date
22/12/2008
a.
Securities transferred into the Depositor's Securities Account before 4:00 pm in respect of transfers
01/12/2008
b.
Securities deposited into the Depositor's Securities Account before 12:30 pm in respect of securities exempted from mandatory deposit
27/11/2008
c.
Securities bought on the Exchange on a cum entitlement basis according to the Rules of the Exchange.

Number of new shares/securities issued (units) (If applicable)
Entitlement indicator
RM
Entitlement in RM (RM)
0.31

Remarks :
Payment of the proposed Final Dividend is subject to the Stockholders' approval to be obtained at the forthcoming 44th Annual General Meeting of the Company scheduled for 26 November 2008.
© 2008, Bursa Malaysia Berhad. All Rights Reserved.
does it mean i will get 0.31 cent or less??
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Final dividend of 14 sen per 50 sen stock unit tax exempt and 17 sen gross per 50 sen stock unit less Malaysian income tax at 25%.

So that means 14 sen is tax exempted that means RM 140 NETT YOU GET

Whereas for the 17sen it will be taxed 25% thats means you will get RM127.50

So you will get RM 267.50 nett...
For the tax part you cannot claim back as stated on our new budget by our Ex finance minister


darkknight81
post Nov 7 2008, 09:53 PM

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QUOTE(cherroy @ Nov 7 2008, 11:57 AM)
Yes.

Previous under imputation system. BAT declared as Rm1.00 dividend less tax. But people can claim back.
But now with new single tier system, it become Rm0.76 single tier not claim back.

Both company is actually paying the same amount of dividend.
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Got one question here, since all th dividend counter like BAT, NESTLE JTINTER will be badly affected as the dividend yield is erroded 25% . I WONDER why these counter share price still so solid. Pls advice
darkknight81
post Nov 8 2008, 04:15 PM

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QUOTE(cherroy @ Nov 8 2008, 09:52 AM)
For rich earner, it makes no difference, still an attraction for them! because personal highest income tax bracket > corporate rate tax.

Steady dividend stocks are even more attractive nowadays because of interest rate cut around the world. Deposit rate is sliding across the globe, even for US only 1%, so those with 7-8% steady dividend yield and dividend/profit won't be affected too much in the financial crisis become more attractive than previously.

Dividend yield attraction is always a comparative with deposit rate. If FD rate is 7%, then it makes no sense to invest into stock that carry 7% dividend, as why opt for risky investment while getting the same yield?


Added on November 8, 2008, 8:53 am

They generally will state at the back when declared the dividend, just like BAT declared "76 cents dividend single tier".
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YUP, FOR rich earner there should be no impact at all. How about for medium class ? their salary is low. So, for the medium class who holding dividend stock might not benefit them so much compare to last time.
darkknight81
post Nov 9 2008, 12:12 AM

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QUOTE(htt @ Nov 8 2008, 11:34 PM)
If imputation dividend amount to RM1,000 distributed to a rich (highest tax bracket at 28%) and a middle (highest tax bracket at 10%) shareholders.
When they submitted their tax return at the year end.
Rich shareholder no need to pay tax for the dividend, and cannot get refund (or reduction) of tax paid at source because his tax bracket is 28% which appear to be higher than 26%.
Middle shareholder can claim back 16% of RM1,000 (RM160) as tax deducted at source because the tax need to be paid for him is 10% but 26% had been taxed by government. He can use the RM160 to offset his tax or get cash back if his difference between tax deducted at source and his highest tax bracket is more than what he supposed to pay.

Under One-tier tax system, they both cannot claim back. This is no harm to rich shareholder but there might be some for the middle.
Under one-tier system, company pay the final tax and dividend is 'not tax deductible' in the hand of shareholders (I think that's just to beautify the system).

Hope I make the thing clear. blush.gif
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Yup thats y i said the rich earner don have any impact but pity for the middle income group lor
darkknight81
post Nov 10 2008, 08:18 AM

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QUOTE(asambuffett @ Nov 9 2008, 11:50 PM)
3k is that 3,000,000units or 300,000units?
just want to know what forumers meant by 1k lots, are u guys using the 100units or the old 1000units figures...
i'll support some at 1.20 (axreit)..heh heh... biggrin.gif
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1 lot = 100 shares/units
darkknight81
post Nov 10 2008, 03:39 PM

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QUOTE(ante5k @ Nov 10 2008, 02:44 PM)
.... itchy hands d .... see hows the quarter result, if good, i'm taking another 10 to 15lots.
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Me too tongue.gif monitoring it pricing few weeks already. The trading volume is extremely thin.
darkknight81
post Nov 10 2008, 06:10 PM

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QUOTE(fergie1100 @ Nov 10 2008, 07:04 PM)
Just wanna get confirmation with u guys....
the dividend that we receive from normal stocks are being taxed 26% while 15% for any REIT stocks right?
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Normally yes for stocks unless it is tax exempted. Where as for REITS, Its withholding tax is 10%

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