Market holds up on Atrium because risk of too little diversification, relied on 4 tenants on its 4 warehouses. (Can't blame them as well, 1 warehouse only can have 1 tenants, as compared to offices), as well as its fund size is too small by reit market standard.

It is the first reit suffer DPU severe drop due to non-renewal of tenants, so people are wary on it, market is always like that, once bad performance, take significant time for it to recover or build up the confidence.
While if not mistaken, there is another its warehouses reach the lease period in near term (can't verfiy as no update, or I have not came across on this issue, may be I missed something etc), so market wary about its DPU dropping risk, so discount on the reit price. If it turns out there is no renewal issue/problem, it is a rewarding at 10+% yield.

I would say it is about risk reward ratio that market somehow quite right at current situation, as market is always concern on yield as primary factor, NAV is secondary.

cherroy,

Yes, your investment style is right. My investment style however, is to wait for the counter to reach its NAV. As market confidence would rise in ATRIUM's case (if nothing unfortunate happen again), then we could see the price get back to its NAV. The only problem is how long? The longer it takes, the more it will benefit me

Jordy,

Cherroy has answered what i meant In term of risk atrium risk is the highest among the reits.

I still prefer UOA. I am thinking of buying UOA soon. I can average it out every quarters. There are no right or wrong though.

The most important part is we hold our own believe We have our own path on investment

This post has been edited by darkknight81: Dec 7 2009, 09:06 AM

DJ MARKET TALK: Hektar May Edge Up; Plans To Buy New Assets

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0044 GMT [Dow Jones] Hektar REIT (5121.KU) may attract buying interest on Business Times report company in talks to buy new property assets; immediate resistance at MYR1.08; shares ended flat at MYR1.07 Friday. "We are in the midst of negotiating for new acquisitions but cannot divulge any more details at this time," says chairman and CEO Jaafar Abdul Hamid according to the report. The fund is geared 41%, close to the 50% limit set by regulator. Acquisitions will be through equity financing which will require new units to be placed out but Jaafar notes capital markets have rebounded substantially. "Hopefully the timing would be conducive (for us to sell new units) when we close any acquisitions," he says. "Investors will be looking for yield enhancement from any acquisitions before making any decision on fresh investments," says one dealer. Hektar REIT has gained 36% year-to-date vs KLCI's rise of 44% over the same period. (VGB)


Is it time to add on more Hektars?

queing for atrium now.

Gotten my Amfirst & Atrium DSP.

During last tenant crisis, Atirum gave 0.8sens DPU (vs 2.2sen now) for that quarter.
Just take 8x4=3.2sens Yield =3.2/85 = 3.7%. (annual). So if similar story repeat again, maybe Atrium still can declare better than FD return.
Other plus points,
- Gearing is the lowest among REIT at 20%?
- Mngt not likely to screw up another big time in such short time
- actual DPU fall only for 1 quarter; whereas above assume worst case last for a year.


I really tempted to collect some but price go up recently....still undecided

One REIT has gearing at 41% , closing to 50% ( max for REITs ) . The excuse is to provide Better Dividends for investors ?

Some more, one of the shopping complexes is located at remote place of Muar.

Quite alarming , though.

This post has been edited by SKY 1809: Dec 7 2009, 02:38 PM

darkknight81,

Lets just assume that I could take up more risk, and I believe my decision will be rewarded

what will happen to the counter when it reach its NAV? why the longer the better for you.I also holding some ATRIUM unit.

Hi Jordy,

If Atrium can reach its NAV, I believe it can also easily acquire another warehouse with a return better than 8%. Meantime, I don't quite understand why Atrium takes so long to fill up the CEO post? I hope investors can see the value in Atrium rather than putting their money in FDs. Although I managed to sell some Atrium above RM1, I am still holding some at its IPO price - the yield still comes to about 8%

How about STAREIT ? not much people discussing about it ~

Stareit is also a good REIT. Is yielding 7.4% base on MYR0.86. Correct me if I'm wrong.

STARReit proposed to sell its 2 prized assets, Lot 10 and Starhill Gallery. Some shareholders are worrying.

http://www.horizon.my/2009/11/starhill-rei...arhill-gallery/

yeah, wonder what hotel are they are planning to buy.

Based on the image , at what price the company buy atrium share at? RM1 or RM0.

This post has been edited by jasonkwk: Dec 9 2009, 10:14 AM

Yup, Stareit need to quick on the regularisation plan and what properties they intended to inject into it. Otherwise, reit holders will concern, after the disposal of Starhill and Lot10, DPU will drop more than half, which defy the purpose of invest in reit to look for yield.

jasonkwk,

The shares were transacted in a different way, not the common buying/selling. So in other words, it's more like a 'free' transaction (transfer). Perhaps as a bonus? We'll just wait for their announcement.

axreit going to 1.93, anyone queueing?

Atrium up 2sen.