divy payment date doesnt influence the popularity of REIT stock rite??

AMFIRST have summit USJ on hand now...and so far i like summit USJ because of TGV cinema , Fitness First , Bowling center , n lots of small small retail tenant.

Well, in my case, the main reason for getting reit is for the divy. Thus, the shorter the dates between the divy, the better it is for me. However, I do agree that those with quarterly divy does not mean that its gives the best returns. But to wait a half year or a year for divy is really a long time I guess, there are pros & cons for quarterly vs annual/semi-annual payouts.

Note : AXREIT used to pay the divy semi-annually, but they changed it to quarterly last year, so I guess it logically must play a role in its popularity.

My dream period for REIT is monthly divy. So I can just dump salary directly into REIT & just make use of the divy for living expenses

This post has been edited by whizzer: Feb 22 2010, 12:54 AM

Good point !

sohkeong,

Surprisingly, a lot of people prefer their REIT counters to pay dividend as frequent as possible. Like me, I want quarterly payout because I currently pay my car using the dividends. Soon, I am going to pay for my house using rental + dividend. That said, the frequency of payout is very important for my cashflow.

Jordy

You are right. I also prefer dividend when comes to REIT. There is no point buying REIT for growth when there are other equity counter that moved up much faster.

Great example of getting your money to work for you

By the way, i did googled & there are some REITs in the US that pays monthly div. However, maybe because the competition is intense there.

One point worth considering is that making the dividend payments more often should increase the company's administration costs, ultimately cutting into the yield. I have no idea how big of a difference it makes, but I believe that even making the regular quarterly reports represents a significant cost for listed companies. Moving it to a monthly system should be extremely expensive.

I treat REIT as FD with higher risk of taking back my capital because of the liquidity of the instrument because the volume is low.You will incurred losses when selling time because most of the buyer will queue at a much lower than closing price.(when u want to sell, sell after the dividend is announce, u will get a better price)When you buy in, make sure you will be putting for more than 1 years. Volume low also have it good side, I don't have to monitor the stock everyday, it will drop or rise abruptly.If possible I don't want my REIT NAV to increase, 1-It will increase manager management fee causing lower dividend, 2-it will push the price up or down, making it volatile.Theoretically when NAV increase, the price will go up,but then I am buying REIT for dividend not appreciation, it will making it volatile and the shark my come in disrupt.It better the price stay the same and I can buy more from the money I got from the dividend.

my 2cent.

True also - imagine for us with nominee a/c, the bank stands to earn extra "service" charges for helping to cash the cheques.

Sry just a question... Does the move to single tier dividend as proposed hinder you all to buy REIT shares? If not mistaken i think there are also withholding taxes involved in REIT. I'm just concerned with the tax issues if I get REIT shares.

FYI, my tax bracket is lower that of company tax rate...

REITS WITHHOLDING TAX is only 10% and it is not claimable

received my dividend for atrium and axreit yesterday.

belanja makan lo

hahaha, have to wait till the price drop then can enter more. I bought it expensive.

Hey guys, i plan to invest into REIT for dividend returns. Yes, i would prefer it quarterly and at least 5-7% returns per annum. Any good recommendation within the budget of 20-30k?

sailou,

For that kind of return, any REIT would be a good buy for you. It depends on your personal preference as we have several sectors of REITs to choose from. There are the mixed REIT, plantation, hospitality, healthcare, office, industrial and retail. Invest in a sector you are familiar with. Don't worry as they all have almost similar yields.

sailou .. this blog maybe can help u http://mreit.reitdata.com/

UOA REIT may buy office blocks for RM500m

UOA Real Estate Investment Trust said it is considering a plan to buy two office blocks in Kuala Lumpur for RM500 million.

UOA REIT received an offer from UOA Holdings Sdn Bhd, a substantial unit holder of the trust, it said in a statement today.

The assets are a tower block comprising 15 levels of office space in Bangsar, Kuala Lumpur, and another 16-floor building, it said. -- Bloomberg

AXREIT hittings 2.xx.

Imteresting deal. Pretty much doubles its size. As a unitholder, I'm pretty keen to see the valuations and yields for these properties. Another 200m+ loans is a little worrying, but I hope they know what they're doing.