Yay, Neo can treat us all for dinner now!

My simple calculation tells me that he has about 174,000 units or 174 lots of AXREIT. At current price of 1.28, the total value is RM222,720. Interested?

As far as I know, REITS do not issue rights, but they can increase their fund size by issuing new units to the public to pare down their gearing. Cherroy, please correct me if I am wrong

Haha ante5k, I am still using the "old" conventional conversion as I am more used to that
We old-time traders still use this until today so as not to confuse my remisier.

I don't think Neo would sell off his holding altogether. He loves his AXREIT too much that he could not stop accumulating

Lol, I mis-calculated by 11lots Did you reinvest your dividend?

If businesses are going down and property prices depreciating, then tenants can opt to revise their rental rates lower during their renewal period. This would affect the rental income significantly in proportion to the property price. Earnings of REITs will be reduced by increasing interest rates as well, especially those with high margin.

But it is quite impossible for the REITs to register losses as the expenses for REITs are quite low. Their expenses consist of mainly quit rent and property maintenance costs. So as long as they still get full occupancy on their properties, REITs will still register positive cashflow.

What are you talking about now? Your sentence does NOT make sense to anyone of us. You have not been spamming for a long time, and I hope it STAYS that way.

It seems that AXREIT is very strong at 1.28
Hoping for it to drop a little more so that I can go all in, sigh.
Guess I will have to have patience or just buy in now.

Right cherroy, I agree. I think it's time I reopen AXREIT's portfolio and have a look

I don't see the reason why not. Any stocks listed can be speculated as long as you have the money.
Today, AXREIT went up again to 1.38. Too bad I just bought a few. Was actually waiting for it to go to 1.26 before I start to sapu. Sigh, guess it's not my luck

Ah Pana, welcome aboard. Didn't notice you have came on board until now
I am expecting a DPU of 3.2sen this time around (somewhat still in line with the both of you)
I am also waiting for the price to drop to around 1.33 after the announcement.
That is when we might see another opportunity to buy some more

Well, all I can say, that is normal market reactions.

"if they announce >3sen with quarterly pay out"
The payout this time will be more than 3sen, but it won't be a lot more. 3.2sen for this quarter would equate to 8.3% net at current price of 1.39. That is a big drop from previous levels.

Of course it is good. If it is not good, why are we all watching it so closely?

ts1, I thought you bought AXREIT as well?

Well, looking forward I hope that the 19% lease expiry will not give us more negative news though. There's a lot there as this 19% represents 17.6% of the total rental income. After the ex-date, I am looking for another opportunity to grab more units.

I believe QCapita has more potential as their counterpart in Singapore is a huge developer. They have the experience and money, so I suppose they could have more diversified properties. The case involving ATRIUM has taught us all to buy REITs with more diversified properties.

Why worry about MYR depreciating against others, unless you are migrating? We earn in RM, we spend in RM, so no need to worry about exchange rates

The benefit of buying REIT is that we don't have to worry about location, rental, and maintenance expenses. Another thing is by buying REITs, we can have higher net yield because we don't need to pay interest, and the ability of REIT managers to negotiate higher rental

There's only one disadvantage, which is we lack the control as minority holders.

Lets put it this way. Have you ever thought what IF the situation is otherwise? The situation in US is shaky now, so is USD. RMB is going to create a bubble soon too (could be the next crisis?). The only safe bet now is Japan, where the interest is SO low your money is worth almost nothing. Well, what I am trying to say is that don't just think of it from one angle. During time of crisis, even a giant like US would go into trouble. Remember, this crisis wasn't started by us.

What we want to do now is to find an investment which is higher than inflation. As long as you have that, you don't worry than about MYR depreciating. We're only worried of another phase of this crisis, which is a deflation. But for now, it should not happen yet.

Yes, higher FDI will definitely spur demand for MYR. If the financial situation in US deteriorates (or they print more money), then USD will definitely depreciate against MYR. I am not sure of YTLPOWER's portfolio, but if I remember correctly, they have no exposure in US. So, MYR may appreciate against US, but MYR could still hold against other currencies. Since YTLPOWER does not have any exposure in US, it still wouldn't affect its earnings (say, from Indonesia).

We have to see whether MYR appreciate because of higher demand OR USD depreciating. The former will affect earnings no matter which country it has exposure to, and the latter will affect earnings ONLY if it has exposure in US. You will need more study on this.

But in stock trading, it doesn't really matter about the currency (unless you are trading offshore). If you want better/direct exposure to currency, then you should go into Forex You will only see minor effect of currency on stocks locally.

Just sharing my two cents. You must make your own decision.

Ya, AXREIT is the only Syariah-compliant REIT that I know of at the moment.

Pana,

The net profit they reported is inclusive of a property revaluation which caused the increase of their values by RM 141.534 million. Of their net profit reported:-

- Only RM 37.537 million is their realised profit from rental income
- The rest of RM 141.534 million is unrealised profit caused by increase in valuation (which according to REIT regulation, they must declare as unrealised profit NOT distributable to shareholders)

Which means, AMFRIST needs to only distribute at least 90% of their realised profit. Therefore you can see their distribution at RM 37.529 million (very close to 100%).

For FY2010, there will be 43.7% of its leases expiring, out of which 10.63% comprise of Summit retail spaces. I believe Summit is the only property which relies on other tenants, as most of its properties are occupied by Ambank's subsidiaries. Even if the rental reversion is to be negative, it would not affect AMFIRST's bottomline a lot.

AMFIRST price has been very stable for the whole year through (0.8x), while its NAV has been upgraded to 1.32 from 1.00. This is a very good sign as the margin of safety has increased. Based on its price of 0.92 yesterday, the total net yield for the year was 8.4%. As of now, I still don't know if its earnings will be affected badly for FY2010 because it will depend on the rental reversions.

This post has been edited by Jordy: May 9 2009, 08:13 PM

Understanding the business of REIT counters first is good for you. People invest in REITs mostly for income and not for profit. As what cherroy mentioned, their businesses deal in rental of properties and not trading of properties.

For your information, http://www.bursamalaysia.com/website/bm/li.../historical.jsp

EDIT:
The latest distribution has not been announced yet, so the link I gave you was the previous distribution.

This post has been edited by Jordy: May 11 2009, 09:49 AM