Nope, they are semi-annual one as usual.

This counter very hard to trade one, liquidity is severe low, less than 1000 shareholders (including major shareholders), just a reminder, just in case you are interested.

The increase of receivable is the reason company using more borrowing.
You can see from the cashflow, the borrowing is used to pay the distribution as increase in receivable means somebody didn't pay the company yet, so company needed to use borrowing to pay the DPU as distribution as it can't be delayed.

Yes, I don't care much about liquidity as long as company able to pay handsome dividend or distribution. In fact a lot of my stocks are/were low liquidity one aka seldom trade much.

Just as a reminder, just in case people hope for price appreciation side

If PKNS goes into Axreit, I need to restructure and re-consider on my existing holding.

Never like gov involved too much in a company, as pure stake holders may be ok, but for management not so good, as history tell us, very little company of GLCs or related one got good performance over the long term.

My guess on PKNS would be Hektar.

Axreit may be also as it wants to find some investors for its 100 million private placement to reduce the borrowing and enable for future acquisition.

Simple, since when you see gov investment arm linked or GLC company got good performance?
Surely not all GLCs are poor but high number GLC are not having good performance over the long term.
Not mean to criticise on GLCs but it is the reality which showed by history.

Whenever gov step in private company, then generally market view is not favourable. Not only here, but across the globe even US.

This post has been edited by cherroy: May 18 2009, 10:20 AM

Nobody watching Qcapital lately?

Price become more interesting now.

Aiseh, ahead of me, today buying at 0.84 to join in.

---

Added on May 20, 2009, 3:26 pmBuy small small nia, sellers at least having a few 10K lot of sell, everyday they sell a bit and a bit.
The trend/transaction pattern is similar to Axreit when plunged from 1.50 to 1.00.

Ok don't chiao with you, queue at 0.805.

Everday also same price, why rush?

This post has been edited by cherroy: May 20 2009, 03:27 PM

Tak boleh pakai, no offence.

Those play in goreng stock won't touch reit or those boring counter one, they never bother whether the Qcap is at 0.10 or 1.00. They just want some "action" stock that can shoot up tomorrow and fast within days.

Those invested in Reits won't bother how goreng stocks performance, as the intention to have reits is once invested, then waiting for distribution every Q or semi-Q, just like FD. Any price appreciation is a bonus, which you cannot hope for much.

Reits price tumbled because anticipation or poorer economy condition which tenants are hardly to get or renew which could affect its ability to pay DPU, while properties price might under some pressure.

When someone holds large amount like fund managers want to get rid of it, then you will see some selling pressure which depressing the price until they managed to clear the stock. (which you see Axreit bounced up from 1.00 to now) mainly due to liquidity is low across.

There are a lot of dividend funds, insurance funds are investing in Reits, so once they decide to sell, so market price always being depressed.

---

Added on May 20, 2009, 4:09 pmBasically reits is moving on its own which based on their fundamental and prospect.

This post has been edited by cherroy: May 20 2009, 04:09 PM

Logically, if overall market goes down so does reits price.

As stock market normally plunged because of economy recession, if economy recession, reits will have problem of getting tenants as well as softer property market.

Please share with us the analysis later on.
Many thanks

I have no problem with yield around 7-8% if those tenants are going to stay long and paid up on times.

Compared to yield of 10% on Atrium warehouse, while potential lose tenants in between. I would take the 7% for long term play.

Anyway, me invested little nia.

Yup, I am not interested to buy when it is at 1.00 or above.

I calculated the potential DPU of 7.x cents, then dividend by 0.84 = 8.xx % which after witholding tax translate it into around 8% net, that's why I am comfortable with the risk.

Anyway, appreciated your analysis, many thanks.

1.6 cents is without part of Ceva rental contribution, which is expected ahead in the market, that's why its price from 80+ cents to 60+ cents.

In normal day, reit shouldn't have 10+% yield.
The 10+% yield is current discounting some of difficulty that reit company might be facing like difficult to renew lease, softer properties pricing etc.

Less diversificaiton of Atrium is the major disadvantage.

Yup, revaluation on properties needs to be done every 3 years, as properties price are creeping since 3 years ago, so almost every reit that undergone revaluation has some paper gain across.

You have to look at the operation earning. Don't look at pre-tax or net profit figure as it has been distorted by the paper gain.

As reit as giving out at least 90% of the earning, watching the DPU won't get wrong then.

90% is referring to operation earning, not including the revaluation profit.

The tax law stated they must distribute 90% of the operation earning.

All distribution is cash.

If operation earning is 40 then they at least will give 36.

People look for operation earning only in reit assessment, that's why don't look at the surface pre-tax profit.
DPU is the ultimate figure. Generaly Operation EPS x (90~99%) = DPU.

Aiseh, you are the one making it go higher.

Nah, joking only.

Don't know yet, currently priority on Tanjong, Qcapital, Axreit, Stareit first then may be can't get them or got extra fund nibbling a bit on Atrium. I am comfortable to buy more on Axreit, but Atrium is a bit cautious due to lesser diversification.

Yield calculation is DPU/share price.

So if share price moving up (which happened lately), you see lesser yield.

Main risk across all the reit currently

1. Refinancing existing short term loan if any.
2. Getting tenants
3. Rental pricing power.

1 & 2 are the most important risk to be concerned with.

Axreit is reported securing some Rm170 million long term (3 years and 5 years term loan) for refinancing existing short term revolving loan. Half based on fixed rate at 4.5% and the rest at variable rate.

So Axreit doesn't need to worry about refinancing its majority of current borrowing for another 3 years or so.
So main risk is about tenant renewal.