1. DPU = DIVIDEND PER UNIT same as DPS (for share)
2. Not necessary. FOR Axis case, the NAV is higher than the market price.
3. Yup but not necessary to be true. The other things which is far more important is the future prospect of the company and also the management.

This post has been edited by darkknight81: Oct 30 2008, 07:54 AM

1) Already explained.

2) Take it this way, NAV stands for Net Value Asset ie. how much the total asset of worth per share, so do you want to buy the share price in the market above or below?

Just like Atrium, NAV is RM0.99, so basically its asset worth Rm0.99 per share. So you want to buy Atrium share at Rm1.10 or RM0.65?

Thanks Cherroy & Darkknight.... seems like REIT is very interesting... will try to look more into it

Question:

The NAV stated is based on the evaluation of the properties when purchased or is it evaluated annually?

My concern is the initial evaluation during peak property prices will not reflect the true value of the REIT when property prices slump. I'm not saying it is false advertising, as the NAV is based on accounting figures.

Is now a good time to start accumulate REIT?.

I have been allocating 20% to buy Atrium and Axreit. Just bought 3K lots of Atrium at 0.67

This post has been edited by georgechang79: Oct 30 2008, 07:38 AM

Individual REIT might have their own policy on property valuation, they whether use historical cost (unlikely) or fixed interval re-valuation. Most of them doing that for interval of 1 or 2 years, some 3. NAV going up and down with the valuation, whether or not the NAV is correct vary depending on the point of valuation. And true, that's just accounting figure and doesn't mean anything when they have to liquidate the asset during extraordinary time (I like the word 'extraordinary', that can mean anything ).

If not mistaken, there is a regulation in place for reit which they can/should do the revaluation every 3 years, but can it last year already done the revaluation, they can't do it again until 3 years period has past. So every 3 years, if the properties price are lower across, we might see NAV dropping as well.

Yes, your concern indeed realistic, that's why all reit are trading below NAV at least 20% or more in anticipating a slowdown in properties as well as rental income.

Seems like Atrium is not a bad choice either Pening kepala want to choose axreit or atrium

This post has been edited by darkknight81: Oct 30 2008, 03:38 PM

i got the same feeling too..... went tru this thread frm page 1 up to page 10.... then straight away jump to last few pages..... found that REIT is interesting...... can i say that the dividend payment of REIT is even higher than those BJTOTO, GUINESS counters?

If taking account of single tier dividend, yes, currently they are.

But for reit you don't have the unlimited upside potential as normal shares do. As income is predictable and flat while share price shouldn't be too much over its NAV as well. As a property worth that much, then reit should be around that.

Upside potential or attraction for reit come from 2 sources only:
1. rental income increase
2. properties price appreciation
3. FD interest rate too low compared to reit yield.

While for normal shares,
1. Company is doing businesses, so businesses can be expanded with no limit which result in greater profit. So thoerectically, there is no upside limit for the share price, as long as profit grows.

Reit and normal company shares are actually two different class of asset.

Reit is much similar of buying a property then rent out only.
While normal share, you are participating in company business to earn profit.

This post has been edited by cherroy: Oct 30 2008, 04:14 PM

Anyone with any insight on why Atrium Reits stock drop today when others up?

Simple. Atrium invests in warehouses. The economy dies, companies cut down on inventory, close some warehouses, prices drop. Other REITs invest in retail properties, retail market is still strong because Malaysians like to shop lol plus the lower ringgit means stuff is cheaper for tourists, so possibly we'll have more tourists, so retail REITS will probably not be affected as much.

This post has been edited by wodenus: Oct 30 2008, 10:53 PM

malaysia reit have no enough data which i mean 10 yrs atleast. it just lowsy in term of financial data record,
despite good return at moment , i believe will cool down next year.
reit wont give bonus issue in short unlike they are so well manage and acquire new building,
imagine most building in malaysia overbuild and old one will leave abandone, like subang summit, kl plaza, those are near abandone. not logic to own them.

You got to see the locality k....MOST of the reit just listed last few years....so what do you expect for 10 years record...Sure it will cool down during recession but it will go up again k..

Also take note that even for Atrium, their rents are contract based, and will not have any problems for the next 3 years? at least.

So I see the current price decline as being a good time for you all to pick up some if you wish.

Do also note that reits have different dividend payment schedules.

Atrium's paying the next quarter on October 7th I believe. Quarterly basis.

Axreit pays twice a year, starhill 3 times a year. Or did I get them backwards?? Hehe...

This post has been edited by eltaria: Oct 31 2008, 08:20 AM

Our export is down by 40%.

Those in the warehousing could be hit.

And warehousing business was badly hit in Year 97/98.

But the main buildings are rented to dhl, tnt etc with 3/5?? years contract signed. Profit for this period will be locked in already. regardless of economic slowdown.

Can be re nego during the very bad time as in Year 97/98. They prefer good pay masters than facing bad debts.

This post has been edited by SKY 1809: Oct 31 2008, 09:00 AM

Yup. I am targeting Atrium at below 40 sen if possible. Axreit RM 1.00 OR below.

when is the ex date for atrium reits? thank you.