Just a quick and rough gauge on BSDREIT div.

From Bursa post on the deviation on earning, we get the following :-

For the year ended 31 December 2009, the forecast in the Prospectus dated 15 January 2007 was for a profit after taxation of RM34.8 million compared with the actual of RM83.2 million.

The positive deviation of 139.1% was mainly due to :-

(1) additional income from the fixed rental of RM11.9 million and performance-based profit sharing of RM17.8 million,

(2) reclassification of replanting expenditure of RM9.7 million as capital item,

(3) gain on disposal of investment properties of RM6.5 million,

(4) unrealised gain on valuation of investment in quoted shares of RM1.6 million

(5) recognition of unrealised fair value gain on revaluation of investment properties of RM12.5 million.

(6) the finance costs of RM4.6 million incurred during the year resulting from utilisation of Revolving Credit facility of RM95.0 million for acquisition of Bebar and Malakoff Estates

Based on the profit forecast during the ipo the fixed income distribution of 7.38 cents (3.69 x 2 times) can be attributed to 34.8 million.

The deviation for profit improvement is 83.2 - 34.8 = 48.4 million.

From the 48.4 million we take away all the unrealised gain and fixed income, i.e.

48.4 - 11.9 - 9.7 - 1.6 - 12.5 - 4.6 = RM 8.1 million

So the amount available for additional income distribution is 8.1 million.

If 34.8 million give 7.38 cents, than 8.1 million will give 1.72 cents.

From the bursa posting on income distribution :

Final distribution of 5.61 sen per unit, comprising of Fixed Dividend of 3.69 sen per unit and Variable Dividend of 1.92 sen per unit for the year ended 31 December 2009

HAHA, 1.72 cents compare to 1.92 cents. error of 10%
(1) i dun normalise the taxation effect properly since i am not an accountant
(2) some normalisation is not correct since BSDREIT increase the plantation asset compare to the time during listing.
(3) i think compare to listing and now, the share capital oso different.

May be some accountant can help ......

Anyway to answer to Sopol, 1.92 censt of additional income distribution is justified, and BSDREIT dun keep much cash.

Btw, M-REIT dun retain much profit coz if they distribute less than certain threshold (90% i think) than the REIT is subject to tax at REIT level (not the witholding tax at unit holder level).

U may refer the REIT listing guideline from SC or Bursa.

Ok back to BSDREIT, it is one of my portfolio, and it is a good proxy to palm oil stock and commodity play as well, u get decent div yield in normal year and when Palm Oil boom u get some extra income.

anyway guys.. just wanna ask... everytime after dividend payout the price of REITS counter will drop much??? i just want to estimate the good entering price... gonna give 30% in portfolio to REITS for stable income.

sohkeong,

Nobody can really predict the price movement. It is not uncommon for the price of REITs to rise after ex-dividend if investors perceived good news from the company.

Plantation,Retail, Industrial, Office,Hospitality and Health-care, which kind of REIT has the highest risk of not finding a suitable tenant?

Primary factor is always location.

If really want to choose between the option above, my view, health-care, as it is more customed made generally. But still location overwrite all the factors, as land is the most precious value of the asset, not the building.

But not necessarily healthcare. As what i know KPJ REITS is owned by kpj hospital. Unless KPJ really close shop else KPJREITS don have worry for tenants issue. Correct me if wrong.

err.... I understand the issue. I was comparing type of properties itself, healthcare or hospital building has few interest as compared to retail, industrial if really want to auction time or when seeking for tenant without talking about RPT issue.

for REIT, building is more important to collect rental, unless you are doing property development, plantation.

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What is the meaning of "last date of lodgement " means?

as expected...bsdreit performs badly today. drop 3 cents due to low divy announcement. 2008 was 11.03 cents but drop to 9.3 cents for 2009.

hektar is the next one to announce their earning report and divy

just unloaded my arreit by half of my total holding (profit from capital gain). another half is for divy play..

When is Hektar's report coming out?

i think today or tomorrow. the announcement should not go beyond this week otherwise something wrong may be happening...

Cool! Hope to get some good dividends!

AXREIT went ex today, yet still rose 1 sen, closing at 1.92 with a high of 1.95. This shows the support for the counter is still strong. ATRIUM will go ex on Thursday. I have a feeling that it will fare the same as AXREIT today.

What is the meaning of "last date of lodgement "?

I repost this since no one reply.

just for record purpose, hektar has declared dividend 3.1 cents i am satisfied

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Added on February 2, 2010, 9:34 pmjason, poor you no one has answered your query yet. hopefully there will be a sifu attends to you soon.

as for me, i never paid attention to it..the more important is the ex-date and payment date..that is matter in determining the entitlement of dividend and get paid..

This post has been edited by sopol: Feb 2 2010, 09:34 PM

Last time I tried to find the answer but couldn't get good references either.

Here's one explanation by our forumer although it doesn't explain everything : http://forum.lowyat.net/topic/819810/+600



However, dividend lower than Qcapita!

if look at the current report, yes hektar (3.1 cents) is lower than qcapital (3.9 cents). if look back 12 months then you will know hektar's total pay out is 10.3 and the payment is every quarter. while qcapital is 7.68 cents and the payment every 6 months.

hope this will help you know the real situation. anyway it is good earning ang pow for cny

Thx for the clarification as I thought Qcapita was also paying quarterly. Yeah, ang pow coming tomorrow and the next day for Qcapita and Stareit!!!

Hektar gives me 10% net (after 10% tax) return. though I got it higher but no complain lo...

Same same!