How about axis, i am targeting at RM 1.00. Fair enuff?

Not only fair, it is dirt cheap at 1.00, if income from rental doesn't drop more than 10-20%, while properties price doesn't fall significantly, properties price will under some pressure, no doubt, but as long as it doesn't collapse like US real estate, it could be good bargain.

I beliv it is achievable though when ppl panic selling. I think their management don do share buybacks like ytl power

Don't worry, they have no cash to buy back, every year they need to distribute all the profit to the unit holders, which is one of major feature I like reit. After all shareholder means 'share' the profit mah.
Min requirement for reit - distribute at least 90% of the profit made.

I don't like company keep tons of profit which is not being utilised, as my personal view, it is selfish act and not willing to share and fair to looking after the minority shareholders as retailers.

This post has been edited by cherroy: Oct 28 2008, 04:15 PM

No wonder you like Reits so much. Now i understand

Atrium now at 13% yield.

Atrium assets are mostly on industrial whereas axis is more diversified on different type of building.

Atrium asset are all warehouse for logistic business, actually only 4 warehouses.

Yup, for more diversified, Axis always being preferred. But 13% is very tempting figure, but do remember, there is one property under Atrium which its lease has expired and fruther renewal based on monthly only, so it is the risk of it of tenants whether they intend to lease it or not.

i dont think it will reach RM1 around RM1.20 - 1.40 should be good.

I beliv if economy recession for another few more years, all the Office, warehouse occupancy will be reduced. It will affect the yield.

Yes, that's why reit also dropping, as market generally move ahead of real economy as it is a discount mechanism.

As if rental remain the same, and occupancy still intact, there is no reason for reit to drop 20-30%.

Thats y i target RM 1.00. Let assume the yield drop by half to 5 sen only. At least my dividend yield can maintain at 5%

Is the Private Placement of further 120,000,000 new shares representing 46.9% of existing shares going on plan? At what price they are selling?

Cherroy,

from this link we can see quill capital properties all is perpetuity. One thing is the dividend yield is the lowest compare to other reits.

http://qct.com.my/properties_highlights.aspx?pageid=14

Yes, I noticed that before. As for the yield is the lowest, may be investors taking account of tenants quality as well as those more stable tenants (DHL, IBM, BMW), people willing to take lesser yield in exchange for stable tenants.

YTL Corp buys Singapore REITS for S$285m


KUALA LUMPUR: YTL Corp Bhd is acquiring stakes in two real estate investment trusts (REITs) management companies in Singapore from Macquarie Bank Ltd for S$285mil.

YTL Corp said on Tuesday it would acquire about 26% of Singapore-listed Macquarie Prime REIT (MP REIT) and 50% of Prime REIT Management Holdings Pte Ltd (PRMH).

Under the corporate exercise, YTL Corp would acquire 247.1 million units of MP REIT at 82 cents, which is at a discount of 49% to MP REIT’s net asset value per unit.

At 82 cents, it is 17% above the 30-day volume weighted average price and 52% above its last traded price.

“The acquisition of 50% of PRMH together with the units allows YTL Corp to control the REIT,” it said.


Source http://biz.thestar.com.my/news/story.asp?f...44&sec=business

Axis Reit

Number of unit on 2007 = 205 million units

<<
(iii) proposed placement of up to 120,000,000 new units (“Placement Units”), representing approximately 46.9% of the existing units in Axis-REIT in circulation at a price to be determined later (“Proposed Placement”);

(iv) proposed increase in the existing approved fund size of Axis-REIT of 255,901,000 units to a maximum of 375,901,000 units (“Proposed Increase In Fund Size”).The Proposed Reclassification, Proposed Amendments, Proposed Placement and Proposed Increase In Fund Size are collectively known as “Proposals”.
The details of the Proposals are set out in the ensuing sections.

>>

My concern is :
1. This will diluted the DPS of Axis Reits.
2. How much is the issue price? If lower then market price then that means it will drop further right? How about if the issue price is higher? Need some expert to explain.

1. Yes & no. Yes, it might dilute the EPS with more shares, but, migh tbe no also, as those new shares being issued is used to fund the new acquisition which generate more earning to the company.
As shown by previous 50 million private placement, it doesn't dilute the DPS but improve on it as newly acquisistion properties generate more rental income for the company.

2. Issue price generally will be set by market average price which determined by the company and approved by SC.
So the lower the market price it is, the lower fund being raised and could be facing difficulty to place out in a bad market condition.

times are bad, business no good, locations no fungsui, tenants wants a 50% rental review,
if not all tenants wants to move out. tenants happy,shareholders happy, win-win deal

1) Can somebody explain what's DPU & NAV? I can't find DPU but i found that NAV stands for Net Asset Value....
2) Does NAV have to be higher than the current price?
3) Basically the higher the better for NAV & DPU