Axis reit gearing should be about 20-30% after taking account of the completion of newly issued private placement.

Reit won't have net high cash nor net high debt position. As reit has to distribute 90% of its income to the reit holders, so not less than 90% cash generated from the income has been distributed yearly. While gearing can't more than 50% as set by SC on reit guidelines.

bought 20lots at 1.51 today..
this is probably my last buy on axreit.


This post has been edited by ante5k: Oct 15 2008, 05:04 PM

Now probably is not a good time to buy REITs yet. There are reasons why people are selling down on them, mostly due to recession fears. If global recession really steps in, then only I will start accumulating REITs.

i agree .

Haha, but too late isn't it? You already bought 2k units today, and you stated it probably would be your last buy on AXREIT

gonna stop lor, but that price too irresistable. Actually, i just queue queue only .... didnt know actually got people selling at that price, just before market close .... buy toto 6/52 also no strike, sien.

This post has been edited by ante5k: Oct 15 2008, 11:24 PM

I am waiting for Capital Land lisitng in next year. Owns Gurney plaza in Penang, Sungai Wang and The Mines.
Anyone knows which counter has Tesco ? Heard Tesco is in REIT.

This post has been edited by rayloo: Oct 15 2008, 11:26 PM

Haha, then maybe you are lucky (or not). Who knows? Will have to see where the global economy is going next, but definitely not getting any better

AXREIT is the one which owns one of Tesco's stores (if I remember correctly). There is no REIT company owning Tesco as a whole, but AXREIT is only owning the "property" which Tesco rents.

Thanks Jordy, only one ? Hmm....which one ah ? Only one then not interesting leh.

I forgot which one, but if I am not mistaken, it should be somewhere in Kedah. Yes, they have only one property rented to Tesco.

Warehouse Retail Facilities
Giant Hypermarket (Sungei Petani)

http://www.axis-reit.com.my/section.cfm?id=70

Oh, thank you for pointing out my mistake. Damn, most of the information correct, but the store got mixed up. Really getting old. Haha.

This post has been edited by Jordy: Oct 16 2008, 02:23 AM

Then which counter has property involved with Tesco ?

Qcapital

The one Tesco store in Penang, Jelutong. Others Tesco store ain't.

Hi Cherroy,
Thanks for response. I checked their Q2 08 result & noticed interest expenses double from 1.1million (Q2 '07) to 1.9million.
In terms of % to total trust income (1.1m/8.7m vs 1.9/13.2m), its an increase of approx 11% to 14%.
While current interest rate is low (gov to maintain liquidity of credit), can't rule out an interest hike during -ve growth of economic (when current global financial crisis effect actually been felt in Malaysia).
However, based on above numbers, seems AXREIT is in good shape to withstand interest hike or drop in rentals.

2007 DPS is at 13.6sen, even if I slash it drastically by half at 6.8sen, the yield is still 4.5%. ~ at RM1.49 price this morning.

I am being very conservative in valuation here & this stock seems worth a buy.
Can't understand why the stock is on free fall recently... perhaps I missed out something? Feel free to add or comment. thanks

No, you can rule out interest hike when economy recession time, interest rate will go down. But current global credit crisis is not about interest high or low, it is about liquidity, bank capitalisation issue and confidence problem to lend ie. banks not dare to lend. The worry of this credit crisis is company not able to get loan not interest rate charges. But at least Malaysia banking sector still far from that level at leat for time being and near future. But Banks here surely will tighten up their loan given.

The more concern part of reit in economy recession is lower income from rental, or tenants not renew their lease and property price going down which affect the valuation of the reit property.

All stocks are free fall due to market sentiment which nobody can control about it. People wish to dump their shares for whatever reason, while buyers qoute at low low price, then with eagerness to sell, the price will plunge down.

But if some do plunge down to unrealistic low valuation, then it might be opportrunity as well.

Unless income from rental drops drastically and property price plunge more than 20-30%. Then at current price, its yield still much better than FD rate.

I only reason i see selling on REIT is because people are redeeming their unit trust units, and the fund managers have no choice but to let go, even at low prices.

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Added on October 20, 2008, 7:51 pmaxreit down to 1.48

This post has been edited by ante5k: Oct 20 2008, 07:51 PM

Atrium will be giving out 2.1 cents quarter distribution as usual, just announced.

Axreit is 1.43 only and keep on sliding.
Seller being pressured with no buyer Q.


This post has been edited by cherroy: Oct 21 2008, 03:07 PM

By looking at the price now...Look like atrium reit is more attractive compare to axreit

This post has been edited by darkknight81: Oct 26 2008, 09:18 PM

axreit cancelled a S&P agreement ..