I am interested in hektar as the divident percentage is high.
Any comments? How much should I put in?

Actually after I sold my Stareit, I was deciding on Hektar or Atrium. Ended up I replace Stareit with Atrium. Now REIT still consist to 4% of my overall portfolio. Hektar is good, just that too high gearing and the DY is slightly lower than Atrium. For me, Hektar is not bad, but just lower yield. Besides, I want to maintain less than 5% Reits in my portfolio. I would say, if you opt for slow and steady, up to 10% of your capital is still ok. However, just not my taste in investing >5% in REits

This post has been edited by jasontoh: Dec 30 2009, 09:21 PM

My investment:

2% in stock
1% in mutual fund
0.1% in AS1M
the rest in FD..

Primary risk of reit
1. Properties has no tenants, no income and still need need to pay expenses
2. Cannot get refinancing on their borrowing. Almost all reit has some portion of leverage aka debt to acquire new properties while those borrowing generally are short term in nature (around 2-3 years only)
3. Properties price tumble lead to loss in net asset value and also rental issue. (rental generally track properties price)

Thinking of putting 10% in REIT to collect rent.. what do you think?

Which investment tool should I focus?

It is down to individual risk appetite and individual investment management, others can't possibly advise on it.

Others merely can list out the risk of it, while individual needs to assess the risk and situation on his/her own.

As investment strategy also depended on individual income ability, cashflow, affordablily etc issue. There is no right and wrong in investment.

I am almost 40% REITS. Interestingly, all my REITS (Atrium, AXREIT, ARREIT, HEKTAR) are having better capital appreciation than my stocks (except for STAREIT which I bought this month). Unrealized gains is around 40%. Divy not factored in yet.

My list & timing of purchase :-
AXREIT - Bought in Dec 2008 when foreign fund liquidating their holdings.
ATRIUM - Bought when they were going through their CEVA tenancy issues.
ARREIT - (Bought to get divy & thinking that they will benefit from ASM/ASW funds)
HEKTAR - (This one I bought just for divy & strength of their commercial property location)

& now
STAREIT - Issue of selling because of Lot10&StarHill.

After experimenting with stocks for a year. I am finding that REITs may suit my investing risk profile. Monitoring stocks taking too much of my time.

Anyway, above my own opinion only. Not for anyone to follow. As mentioned by sifu Cherroy, you may have different risk appetite.

I have no strong confidence in our retail centre here, you know our consumer habit is the newer the better. Very few shopping malls can stand in the market top notched condition very long, apart from Sungai Wang.

Hektar is good, but in my humble opinion I believe foreigners and KL consuming power is greater, while Hektar's malls are not there. However I do not understand Subang, Muar and Melaka people buying power, so I can't comment Hektar potentiality. But if you are keen in Hektar, you should study the regioanal market before investing.

Depends on when you buy the stocks la. If you buy stocks instead of Reits at that time, your capital gain should have at least 50% and above.

I have the same doubt too.

REITS suffered from Related Party Transactions when come to purchasing of assets or buildings, one way or another.

So we cannot assume all REIT managements are equally wise in their decision making.

The bottom line, it is your money that concerns most.

This post has been edited by SKY 1809: Dec 31 2009, 10:25 AM

Yes. Can't agree with you more. I bought some TM also during that time. It gave me 80% gains. I also got THPLANT which give me -13%. However, stocks are more volatile. They hit higher highs & lower lows compare to REITs. Probably if I have invested more non-REIT stocks, I would not have been sleeping easy this year.

To each his own... No wrong or right.

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Added on December 31, 2009, 12:47 pmMy opinion is that its all relative right. If the property in Muar & Melaka are bought cheaply, so even if less people, but if calculate ROI, the percentage could be higher.

This post has been edited by whizzer: Dec 31 2009, 12:47 PM

QCAPITA price is pushed up to 1.08 at the last 10 minutes of 2009 trading session. Is it a window dressing? REIT also have window dressing?

Lot of fund managers, especially UT fund, insurance funds do invest in reit which is stated clearly in the largest 30 shareholders list.

I'll have to say REIT's gain is silent

I bought ATRIUM back in April when they were having issues with CEVA, at a cheap price of 0.62. I just put it one side and didn't expect it to regain strength by end of the year, and I sold it off at 0.92, that's a gain of ~49%!

Of course, during this period I've got GENTING which made a gain of ~85%, HUAAN ~140%, EFFICEN ~50%, to name a few, all these had holding time much shorter than my REIT with better gain.

I would say, buy REIT at the right time to diversify your portfolio, and you certainly will be rewarded, silently.

Cheers.

hmm...not sure about muar or subang....but melaka's buying power is there, and there are alot of foreigners too.

No idea on Muar but business in Subang Parade is rather good. Believe me cos I go there every week! Not the 'happening' type but more of a relaxed family shopping mall.

On a side note, Amfirst looks pretty tempting at the moment....

Cherroy,

I have run out of idea on what to buy!!! hahaha... i'm looking into StarReit now.. can buy @ 0.86?

from yield perspective, it's @ 8% dividend gross (7% nett)
from NAV perspective, it's 0.7097 below it's NAV

At the current price it is only 6% yield

Hektar - RM1.15

Aiks. Should have get Hektar instead of Atrium