I don't follow this counter, sorry mate. Don't know much about it. May be will look into it, only knew and familiar with it then only interested in it.

Btw, Atrium has 2 transaction done at 0.96 with 5,000 lots and 1,000 lots (not 5,000 shares but 5,000 x 100 shares)

This post has been edited by cherroy: Mar 7 2008, 04:19 PM

I got, why?

No,

I got it before distribution at 0.90. Thinking of buy some but don't want to go lower.

It is quite norm for reit to trade at below its NAV value, ranging from Stareit, Atrium, Amfirst etc due to bearish market sentiment especially towards property sector currently. What matter most on the reit is its yield and consistently yield or yield improvement throughout years. NAV come second.

This post has been edited by cherroy: Mar 26 2008, 10:34 PM

Yup, both are important, just I said it (NAV) comes second, yield is the primary factor.
How much the dividend yield is related to its dividend distribution and its share price, (aka dividend/share price) not related to the NAV.

Eg.
If Axreit price is at 1.63 (same with its NAV), while EPS is around 15 cents , yield= 9.2%
If UOAreit price is at Rm1.38 (same with its NAV), while EPS around 8.8 cents, yield = 6.4%

So even Axreit traded above its NAV at 1.80 (yield = 15/1.80 = 8.3%), it is still more attractive than UOAreit price at 1.38.

Another eg would be AHP2.
NAV at Rm.92 but only trade at RM0.50. Purely on NAV, it seems very attractive, but it only could generate 2.4 cents of EPS, which makes the yield not attractive that's why it is traded at Rm0.50 (around 5% yield) instead of near its NAV. Reit or share price will adjust according to EPS which is the primary factor in the share price movement, NAV come second.

Above is just a simple comparison, as property quality and potential for higher rental in the future and property price aprreciation, management issue etc also can be factors to be considered.

As reit is not as same as normal stock, whereby room for upside for normal stock is much greater than Reit, investment in reit is about getting yield which is higher than FD rate consistently throughout.

Don't get me wrong, NAV (for reit, normal stock different story) also a important factor, as it is the real value of the property based on current market price and you don't buy at overly on top of it then most of the time will be fine.

This post has been edited by cherroy: Mar 27 2008, 11:19 PM

Atrium usually pay quarterly one, within 2 months time after the quarter ended.

Brother, wrong already.

Reit is tax exempted from income tax.

The 15% tax is witholding tax, which is one off, can't claim back nor whatsoever. So it has nothing to do with one is below 15% or even non-taxable, it is still being taxed at 15% as far as I knew.

May be he is talking of 7 x 1,000.

Atrium released its latest Q, and will give quarterly distribution of 2.05 cents.

It's earning for 1Q is 2.14 cents, so close to 2.2 cents. Distirubtion is 2.05 cents.

Rental income is fixed already, won't see much improvement, applicable to most reit, unless renewal of lease. Therefore don't expect to see much upside surprise for earning from them, unless newly injection of properties like Axreit.

Reit is purely getting the yield only.

No news. But its (Atrium) price is under a bit of pressure due to sellers eager to liquidate recently.

Stareit is going to revaluation its properties, Lot 10, Hotels, and Starhill which might result in increment in NAV to Rm1.18.

If drop below Rm0.85, will pick some again.

Yes, it is YTL group one.

I don't know your case, but just don't put all the eggs into one basket even though you knew probably it is good over the long run. Diversify a bit, no harm done, but not overly diversify also until too many can't keep track or monitor.

As long as it still generates steady profit/distribution to the shareholders, then not much to worry about. Only worry if fundamental has changed. This is the major concern if it did happen (applied to across all the stocks)

At 8.+ cents distribution annually, you will recoup your all capital invested in 10 years time, then the rest is your net gain. (not plus interest lah). LOL, just joking.

Not as bad as you think, most reit reported within expected result, rental or their lease is fixed, so their income is also fixed based on their leasing tenure. Mostly leasing tenure at leat 2-3 years and above. So witin this period income is fixed and secured.
Reit financial result is highly expected because of above reason mentioned. You won't see singificantly surprise upside nor downside in their earning.

Long tenure has good and bad:
Good : you secure the income long term and don't need to worry about finding new tenants for the property. This is good for when property is in bearish time.

Bad : rental is fixed so reit manager can't raise the rental to increase the reit income especially when it is on property boom time

Yes, you capital might be eroded in a bad time also because market anticipated a hard time for property market in near future due to inflation and slower growth ahead which drag down the property price.
That's why currently most reit counters are trading at around 10% discount of their NAV. But for sure, it can't go too low as compared to normal stock that the company goes broke or brankrupt because the basic underlying is its property worth.

Just my 2 cents and view, not necessary correct.

This post has been edited by cherroy: Jun 4 2008, 01:55 PM

Yesterday pick up already at 0.85. Drop fruther may be pick up some again.

Buying now at 0.85 is similar to buying at 0.82 because there will be around 3.4 cents distribution after June 30 ending.

Net yield is abut 6.8%.

This post has been edited by cherroy: Jun 13 2008, 09:19 AM

Yup, gross is 8%, witholding tax of 15% make it a net 6.8% yield

Probably.

There are a lot of insurance funds are investing into Reit as seen by the substantial shareholders list.

Yes, that's true.

Based on the last few days of high volume trade, it just seems sellers are those substantial shareholder, may be just 1 or 2 single identity only. There are no other seller besides them. You can see those sellers sell with big lots (100,000 shares multiple) while no others sellers join in the sell queue.

The first reit to list in KLSE is Stareit, if not mistaken.

Currently, FF are existing the market, so any stocks will face selldown even those strong fundamental one also will suffer.

For Reits stocks, they will face some downgrade or selling because potential higher interest rate hike. If FD rate goes up, then reit price need to go down in order to have higher yield. Reits yield always need have to a few % spread in order to attract investors, if FD rate is 6%, reits yield is also 7%, then it doesn't make sense to own a reit.

Also with potentially higher BLR, those reit under high gearing one might need to pay more interest on their loan, so potential less income distribution.

Property market might face some difficulty ahead as today thestar article. http://biz.thestar.com.my/news/story.asp?f...02&sec=business

This post has been edited by cherroy: Jun 23 2008, 04:11 PM

Sungei Wang Plaza has nothing to do with Stareit. Stareit portfolio properties are Lot 10 (opposite of Sungei Wang ), Starhill and JW Marriot.

Properties counters (including Reits) are on the way down because market anticipated poor property market ahead due to high inflation might eat into consumers pocket and lead to slowdown in property and construction as well as overall economy. Even SPB is selling at below Rm3 now.

Yes, if their price is selling at deep discount on their NAV, with high yield then it might be a good time to pick up. Because with inflation looming, future property price will only go higher (if those properties is in good strategic place and not lack of demand one), if or when economy start to be a better situation.

Just my opinion.

This post has been edited by cherroy: Jun 27 2008, 10:29 AM