REIT which stands for real estate investment trust...have u heard bout this b4?

may i know wat is the requirement for this type of investment?i heard my fren said that the min investment is rm10k soemthing but wil guarantee the return ...is it truth?any1 invest b4?pls giv me some advice on its bcos i m the ppl really interest on investment and believe that investment can make a lots of profit..juz wanna know whether this is a good to invest or not?

Is it Ambank REIT your friend refering to ?

REIT concept is similar to mutual funds, except it pools the investors money to invest in real estate. These REITs purchase a neighborhood instead of a unit of house here and there like individual investors do. If we look at the historial data, stock market offers better return than property market over time (and of course stocks bear higher risk).

If you are looking for a conservative->moderate investment with fixed income over time, REIT could be suitable for your portfolio.

FYI, Public Mutual is going to launch a Far East Property Fund on July 10th. If anyone is interested to learn more about it, can pm me.

This is totally bullshit, sorry no offence.

Invest in Reit is almost as same as owning a property then rent it out and the rental income will the main source of income but you can't say it is guaranteed, right? It depends on whether got tenants for property as well as they pay up for it.

Then if the property price went up, then you get the capital appreciation from it.
Reit return = rental income + capital appreciation/depreciation

Currently, local reit yield is ranging about 6-8%.

There are some UT/fund that invest in primary in properties and reit, also there are some reit listing in KLSE like Stareit, Axreit, UOAreit etc which you can buy or trade as like ordinary share, aka min 100 shares.

is da same thing in HK REIT ??

6-8% ? i tot guarantee is 10%?

if no people rent from you who will pay you 10%?

No such thing as guaranteed 10%. If yes, everyone would empty their fixed deposits and buy REITs. Since FD is the only guaranteed investment in Malaysia next to ASB. So please don't believe everything you hear or read.

REITs depends on the property market. If the property market is HOT, and rentals shoot up, the prices of REIT would reflect that. If property is in excess and rental comes down, so will your REIT prices. Appreciation in property is only paper gain until the REIT sells the property. Until it does so, it will not be reflected as profits and will not be distributed to investors of REIT. As REIT distributes 90% of its profits back to investors as dividends after management fees.

And profits meaning their rents collected, not property prices. So if a REIT reports that their property holdings has rise 50% in value, it will not benefit you until they sell that property and realised their 50% gain. As long as they hold on to that property and collect rent from it, the 50% in value means nothing to you in dividends.

This post has been edited by skiddtrader: Jun 28 2007, 02:53 PM

well, REITs maybe falling out of favour soon, with property prices peaking around the world and interest rates rising; well for Malaysia, we still have some ways to go before that happens - so invest and make money while we still can

REIT, same like normal share buying/selling @ 100 share per lot. Meaning min investment is around RM100 for a 1.00 REIT. Normal dividend yield for REIT r around 5-8% and it's not guaranteed, can be 0% also but highly unlikely coz REIT have to distribute min 90% of the net profit as dividend, so shouldn't be 0% le, don't worry. REIT prices traded on the KLSE r quite stable a.k.a boring, but recent speculation on property had hike some REIT stock to new high.

I got my last research done few months ago. Have not invested in any yet. But can pay attention to

AXREIT
DPS 2006: 12.95 cents
DPS 2005: 4.70 cents
PE 2006: 20.85
PE 2005: 4.87
DY 2006: 6.78%
Property model: Mainly office and industry.

TWRREIT
DPS 2006: 5.34 cents
DPS 2005: none
PE 2006: 21.57
PE 2005: none
DY 2006: 5.39%
Property model: Mainly office

UOAREIT
DPS 2006: 8.50 cents
DPS 2005: none
PE 2006: 8.67
PE 2005: 0.40
DY 2006: 7.20%
Property model: Mainly office

Others, not so good for long term.

There is this QCAPITA. From the data collected(news and so on), the future is great. but my research said another way round.

ps: my research information might be wrong.




This post has been edited by edifgrto: Jun 28 2007, 10:08 PM

hmm, this thread has been 'dead' for a month...thought i'd give it some cpr and see whether it comes back to life

with increased in stock market volatility recently maybe it's good to look at REITs for dividend yield and long-term capital appreciation; however i find very little research into REITs in general

looking into the general trend, REITs seem to be on a slow but steady uptrend along with the market

anyone here into REITs? i have ATRIUM REIT but dunno whether it's a good idea...just following research recommendation by Aseambanker

yeah, reits has no guarantee, if anyone says it is, it's cow dung.


REITs in malaysia are taxed right? even tho different investment class, i still prefer to go for stocks with capital gains which are not taxed.

i thought there were no taxes on capital gains? REITs can have capital gains too; their attractiveness lie in the dividend yields...maybe a better option in volatile times since their dividend yields are above the market average

do pay attention to the asset quality of the REIT it is a pre determining factor of future investment return location & how well the asset is being managed (maintenence) and what was the acquisition cost of those assets when the fund was launched vs current market value..

Eg if a REIT fund is launched at the bottom of a property bust, the cost basis is low .. less downside comparing if the REIT is launched near the top of the property boom..

true...but are we in the early, mid or late stages of a property boom?

The distribution (or dividend if you like) is taxed at 15% (local) & 20% (foreigner)

All Capital gain in Malaysia is not taxable including reit.

Property boom? only when 1995-1997. Since after that, Malaysia property market is just almost flat throughtout overall.
Yes, properties price did go up but more due to inflation(construction materials) and some residential properties and selector sectors rather than because of strong demand as in early 90s.

The key fundamental of reit, is well-managed, strategic properties, pricing is not overvalued and if can, better don't have conflict of interest between the large shareholder and its tenants.

This post has been edited by cherroy: Jul 29 2007, 03:24 PM

so we can claim back tax credit on this 15% tax? and why do they call it a withholding tax?

hello cherroy,

coming back to the last question on REIT:-

so we can claim back tax credit on this 15% tax?

please advise, thanks

As far as I concerned, no, you can't claim back the withholding tax, not the same with income tax on normal dividend.

Driven by tax benefits.

The government has provided several incentives to make Malaysian REITs an attractive investable instrument. In addition to providing tax exemption to REITs (subject to minimum distribution levels), Budget 2007 introduced a reduction in tax rates for institutional and retail unitholders. Retail unitholders are subject to withholding tax of 15% for dividends received from the trust. This means that dividends received at the hand of retail investors are no longer subject to further taxation. This tax incentive is particularly beneficial to retail investors who are subject to tax brackets of over 15%. We believe the government could potentially provide more incentives in the upcoming Budget 2008 as it continues to actively promote REITs.

High dividend yielding instrument.

One of REIT's main attraction lies with the fact that it distributes almost all its income as dividend to unitholders. Malaysian REIT is currently yielding approximately 7.2% on average for 2007. At 7.2%, it compares favourably with other instruments in the market even after taking into account withholding tax of 15% for retail investors.

This post has been edited by Neo18: Nov 24 2007, 03:56 PM

http://www.globalpropertyguide.com/country.php?id=117

a global site about real estate market in the world, this is about malaysia.

Currently i have about RM50k of ATRIUM REIT @ 1.012 average price

i hope government reduce witholding tax to 10% next year

We are in the same boat.
Slightly cheaper than you.

This post has been edited by cherroy: Dec 14 2007, 02:59 PM

cherroy,

check this webpage out!!!!
the most detailed analysis of REIT in malaysia!!!

http://mreit.blogspot.com/

May i also ask, lately AXIS is coming out in the newspaper very frequently. Apperently, they intend to buy more property a

Althought the yeild is lower than ATRIUM, should i buy more ATRIUM or buy some AXIS instead?

This post has been edited by Neo18: Dec 14 2007, 03:16 PM

Thanks for the link.

Axis is more diversifed, got 13 properties. It is much more aggressive, some investment house put a TP of Rm2.10-2.20.
Anyway, I am buying some of it lately at Rm1.77-1.85. Last month,, bought 1.85, this week 1.77.

FYI, Atrium is fall short of listing requirement of minimum 1000 shareholders currently, but the company seek for extension of 6 months to verify it. Don't worry, easy job for them, currently got 9xx shareholders registered.

Simplify, Atrium has higher yield, should be 8.0-8.8%, based on lastest Q, can project 8.8%, but downside is low liquidity.
Axis has high liquidity, current yield is about 7.0-7.3%, more diversify.

I am also looking for Stareit at below 0.90.

So judge your own.

ok la.. i will put some Axis into my portfolio...

now price very attractive.. 1.77 can get gross 8.2% dividend

I thought I can buy it at cheaper price today as overall market plunging, but instead it goes up.

ATRIUM is also up now.

I think because of uncertainty in the stock market, people are now buying more REIT counter, because it's safe

Should be it is more defensive and yield attractiveness, not totally safe or like bonds though.

i hold Stareit right now.. current DY is around 7%, better than save money in FD.

This post has been edited by meyyok: Dec 19 2007, 04:15 PM

Welcome to the board, we are in the same boat.

i wanted to buy AXIS at 1.8 but now already 1.86!! i'm so angry!!

You didn't buy when it is at RM1.78-1.80? (when I previously posted time) I thought you want to buy.

Anyway, last week bought some Stareit at RM0.90. Yield about 7.5%

Dear Cherroy,

I have to wait for bullet to come in ma!!! today 28th, ngam ngam gaji day.. so i can only shoot today but already up!!!

Neo,

You got 50k in REiT. No need wait till gaji day lar,

huh? i don't understand.. i don't receive dividend until maybe end of February. So i still need to pump in more money into REIT.. maybe take it up to 100k

100K in Reit could mean extra Rm3k-4k pa (people work hard for 1 month to get it) compared to FD, provided nothing goes wrong for the Reit and property sector. If it is 1 million then means you get extra 30K+ pa.
It is the beauty of Reit also applied to high dividend stock or high yield currency like NZD.

how can i start transacting in these counters?do i even do it like a normal stock market?

cherroy,

if you have 100k in REIT, average return is about 6.5% la.. so u got RM6.5k every year, where got 3-4k?

interestin... i first time visit here... does d risk involve is as low as bonds? besides d risk of price fluctutations in market, wat else i need to look out?

wats d charges i need to consider for REIT?


check d link been posted here, in malaysia onli got 11 REIT?

I was talking 'Extra' 3K-4K, if you put in FD 3.7% while Reit yield is 7.7%, you get the differential extra of 4K (not yet deducted the 15% witholding tax.

The risk is a bit higher than bond. Take it this way, basically you are owning the property and get the yield/return through the rental income.

No charges, only commission charges as same as buying/selling like normal shares.

Price fluctuation is minimal mostly. As if the Reit price goes lower, the higher the yield is which will be more attractive for investors.

The primary risk are :
1. Property value goes down (if this is the case then Reit market price will go down to reflect the valuation)
2. Rental rate goes down means lower yield for Reit holder
3. Can't get tenants, no return.
4. Sincerity of the property needs to be good to keep the property in good shape and attract tenants.

Take it this way, basically you are owning the property and get the yield/return through the rental income.


Yes, there are only a few Reit in Malaysia,still in infancy period.

ic... wat ab d thingy u said ab 15% tax?

does it means d dividend that we get need to tax 15%?

so if d yield for a certain REIT is 7.7%, means d actual devidend shud b 7.7% x 85%?

It is withholding tax. Current system is 15% for local and 20% for foreginers.

Sorry to say, yes. 7.7% x 0.85 = Net yield 6.55% (still higher than normal FD)

There is a rumour back before budget that this industry is persuading gov to abolish the withholding tax or reduce it to promote Reit among investors but gov said nothing about it so most of the Reit price go down (mostly 3-5%, not that much also as previous rising due to potential cut in witholding tax) after the anticipated good news didn't materialise.

i bought 4 lot of AXIS @ 1.85 today

out of 170 lots traded, u got 4

ante,

how do u c that statistic? i know i got partially this morning, and another half more in the afternoon session

I'm going for REIT next year Happy new year everyone.

how do u c that statistic? > no lar, i see total volume traded is 170 lot

This post has been edited by ante5k: Dec 31 2007, 05:20 PM

There are only 2 transaction done today both at 1.85 for Axis, Morning session traded 10 lots, afternoon another traded at 160 lots.
Axis is expected to give arounf 6-7 cents (half year distribution) around Feb when it discloses the lastest Q result of 31 Dec 2007.

After my lastest bought of 1.78, I queue again at 1.75, too bad didn't go down, it goes up straight away afterwards, may be need to wait next time liao.

For those interested in Reit, remember, Reit is sensitive to interest rate environment one especially the FD interest rate. Reit price has invert proportion with the direction of interest rate, generally or most of the time.

This post has been edited by cherroy: Dec 31 2007, 05:27 PM

Most Malaysian REITs are in their infancy, so therefore there should be good upside potential. The lack of solid reit worthy properties is also another good thing. Me thinks industrial reits should be worth looking at as it shows potential within the next couple of years.

Industrial REIT = ATRIUM

Hi Cherroy,

Kindly if you could explain why the FD rate can affect the price of REIT ? I understand above the rules of relationship between Bond & FD .. but this REIT is totally new to me.

Thanks

In investment world all are highly affected by interest rate. That's why when you see Fed or central banks cutting interest rate time, stock goes up while if interest goes up time, stock and bonds are tumbling.

Easy example when FD interest is at 7% while Reit yield is 7%, do you want to buy reit? why put your money into more risk while getting the same return rate? make no sense.
But if FD interest rate is 3% while reit yield is 7% then reit become attractive in this scenario. At least you get the double return rate with some little extra risk exposure.
It applied to stocks market, bonds as well all other investment tool as FD interest rate is the benchmark for all. As if FD interest rate is high, why hassle and put more risk on you money, better put all in FD already.
The primary reason for people invest in stocks, bonds, reit, properties or whatever investment product is to get higher return than FD rate, that's one of the ultimate goal of investment. That's why market come out with the term of PE, yield calculation to make a risk reward comparison with the interest rate environment.

---

Added on January 8, 2008, 3:04 pmAxreit is going to distribute 7.53 cents of second half period. Not bad. Price shoot up a bit liao to 1.91 after the distribution announcement.

This post has been edited by cherroy: Jan 8 2008, 03:04 PM

AXIS reit is really cheonging la

Final distribution of income of 7.53 sen per unit each (of which 7.49 sen per
unit is taxable and 0.04 sen per unit which has been subject to tax at REIT
level is tax exempt in the hands of unitholders) in respect of the six-month
period ended from 1 July 2007 to 31 December 2007.

Ex-Date : 21 Jan 2008

thats the reason why..

may i know when is ATRIUM going to announce their quarterly result?

Should be this month end based on its past record. Reit company generally is quite fast in reporting their financial result due to more straigh forward and relatively simple accouting compared to those manufacuring, services or multi-national company.

ok la, i think it's time to add on more ATRIUM REIT

---

Added on January 9, 2008, 5:02 pmOMG, Axis is now only 1.8!!! time to buy!!!

This post has been edited by Neo18: Jan 9 2008, 05:02 PM

Yup, suddenly shoot down so much, morning high is 2.00, close at 1.80 with massive selling. Below 1.80, I, personally would add more on it.

ya, i'm queing to buy 7 lot @1.80!!!!

For Axis,
cuurently, here is 2 distribution, 7.53 cents final, 0.75 cents for 2008, ex on 21 Jan.
After the revaluation of its 3 properties, NTA stood at 1.625.
If the it can repeat the 4th Q of 3.9 cents and performs better in the future, yield will be around at 7.5-8.0%.

is that 0.75 cents per unit?..if got 10000 shares how much ahh? RM0.75 X 10000 = RM7500 ahh?
that chun ahh?

i was wondering why it drop also.

Any idea the proposed placement of 50 millions new units exercise has been completed? At what price?

Hey, it is 0.75 cents not 75 cents. The final distribution is 7.53 cents while another one os 0.75 cents. Please get it right on the mathematical part.

Cheers.

---

Added on January 11, 2008, 9:26 amThey take market average closing time for a period fo time then discount about 3% if not mistaken. They will annouce afterwards. Should be around 1.7x-1.8x based on its market movement.

This post has been edited by cherroy: Jan 11 2008, 09:26 AM

I didnt' get AXIS @ 1.8 la!!! how come?

Cherroy, I really want to buy this counter, today, Can give me advise on what should be my offer price?

If really want, can queue at 1.80-1.82 level, waiting to some major sellers to come out, there are sign of some people holding some large chunk eager to liquidate based on previous trading record. If they come out, they generally will 'throw' straight away to the buyer queue, like that you probably can get it, if not, not much trading can be expected.
Need to wait and see. Sometimes it is a mind game also.

After since bought some and monitor it, I found that the sellers in this counters generally don't like to queue if they really want to sell. So if really want it, better put queue the buyer and wait.

This post has been edited by cherroy: Jan 11 2008, 09:56 AM

Dear Cherroy,

thank you very much for your input, you all always very helpful.

Once i become millionaire, i will buy you a drink first.

Not too long, my target is end of this year

I will have my drink soon

May be you already are, just you are too humble to admit.

Cherroy,

Not yet la. althought i'm 60% there.

what bout u? diam diam ubi berisi!!!
still water run deep!!!

are you one yet?

I am only a small small player lah by market standard.
Hey, OT too much already.

Atrium drop to 0.98, not much buyers, sellers are forced to sell at lower price. I smell Axis sellers might coming out, if really want, time to queue to try for your luck. I would queue at 1.80,
Would eyeing at Amfirst also at 0.88 (yield about 8.+%), already had some, while Stareit took too few already last time out at 0.895 and 0.90, would add more on it if oppotunities come.

Another point to make, in term of foreigners view, Reit is not their favourite at the moment, due to the property problem in US and UK. Reit price at there has been hit hard with more than 30-40% drop in price.

This post has been edited by cherroy: Jan 11 2008, 11:28 AM

I already Q to buy 7 lot @1.8, good for the day.
I hope i get it.

ATRIUM is coming down quite drastically. I might top up if i cannot get Axis by end of the day.

but ATRIUM i already got 50k la..

ohh..ok, ..very misleading ahh i?.. hope no one went and bought lorr, thinking can recover their investment so fast all.. thanks cherroy btw, for the clarification..

YAHOO!!!!

i got my AXIS @ 1.8!!!!

Told you, smell it already.

looks like AXIS is a must to grab

any insider news?

U guys really like to invest in REIT...the price mainly stable all the time, just for dividend?

No insider news lah, just based on yield 7.5%. It is the most diversifed and more aggressive Reit stock out there. Maybank gives TP of 2.20 while Hwang 2.60.
Will buy some in the afternoon.

---

Added on January 11, 2008, 2:17 pmYes, treat is like secondary FD or like buying properties then collecting rental.

This post has been edited by cherroy: Jan 11 2008, 02:17 PM

What is risk to hold this kind of stock....?
looks like this better than UT....i got 15k in mutual fund...haven't make any profit...

Cherroy,

Atrium @ 0.98 yield 9% interest la!!!

The risk is as same as owning a properties but added up another issue of properties management, you need good properties management team to look after your properties.

Yup, I knew, that's why I still keeping it, at this point, not for me to add on yet, as my previous purchased was at 0.965. So may be lower than it will be better for me. Also seeing whether the newer Q4 report is good or not, if good at 2.2 cents or above, indeed it is a good yield.
Another point, it is traded at relative low volume only, 45 biji only. Since it is a low liquidity stock, several biji of sell or buy can easily move the price already.

This post has been edited by cherroy: Jan 11 2008, 03:17 PM

How often REIT revaluation of it's own properties? price normally will shoot up if undervalue!!!
Any REIT for mid valley & 1 Utame? I only know subang parade & mokhotar parade by HEKTAR...

The newer accounting standard will let the properties being revalued once every 3 years.
No, there is no Reit for mid valley and 1 Utama. Only for Starhill (Stareit), others mostly in offices and industrial.

Since it has revaluation every 3 years, there is no undervalue issue in term of Reit NTA. Look at NTA for the clue for the valuation.

---

Added on January 11, 2008, 4:34 pmNeo,
I just bought Axis at 1.80 also, queue another 5 biji at 1.78.


This post has been edited by cherroy: Jan 11 2008, 04:34 PM

OMG !! ATRIUM is now 0.95!!! it's like 9.3% dividen

Somebody eager to sell but there is no buyer in the market. So the price last transaction jump from 0.98 to 0.95 straight away with 5 lots are being done only. Basically it is due to low liquidity issue, price can jump up and down very drastically due to not many buyer and sellers around, if someone hold some amount of stocks and eager to sell or buy in a bit large quantity, it can move very much.
If you want it to move from 0.95 to 0.98 then buy 1 lots already can.

The most important is to watch its latest DPU, if over 2.2, the went down in price doesn't need to take much care of.

This post has been edited by cherroy: Jan 14 2008, 04:18 PM

Some silly fella went and sold his Atrium REIT at 0.95. haha. I also put an order in already to BUY at 0.95. Damn cheap at this price. Atrium has very sound fundamentals.

AXREIT is giving dividends - Final 7.49� + 0.4� TE
Exdate is on 21-Jan-08

so it would be around RM 58++ for every shares after deducting the tax

Final is 7.49 + 0.4 but your forget another 1st interim of 0.75.

Total will be given out should be 7.49 + 0.4 TE + 0.75.

Also net for final is (7.49 x 0.85) + 0.4 = 6.766
1st interim = 0.75 x 0.85 = 0.6375
So total net = 7.4

Reit is not subjected to normal income tax (27%) but on witholding tax.
Witholding tax for local is 15%, foreigners 20%.

oh i never buy REIT before
therefore wasn't aware about the different tax surcharged

so every 1000 shares of AXREIT entitled to receive RM 74.00 of dividends
AXREIT closed at 1.81 today
the dividends...consider high?

OK lah, much better than FD

For net yield (after deduct the witholding tax) 6.766/1.8 = 3.76% (for half year), annualised = 7.52%

PS: The actual total is gross DPU 7.53 + 6.1 (first half, consider a bit poor) = 13.6 cents for Axis

If really want to compare, reit surely lose out to normal stock, as normal stock price has plenty of room for upside, but fo reit it is all about yield, if higher yield that people chase after, price goes up, if not stagnant mostly. Reit is not as same as normal stocks, risk is lesser than stocks, but potential return is also lesser than stock. If one aims for 20-30% pa return rate, then reit is not a place to be.

It is like FD - Bonds - Reit - Equites.

Reit is in between.

This post has been edited by cherroy: Jan 14 2008, 10:15 PM

when investing in REITs you might also want to consider whether the tenants are related to the issuing company or not. This is what happened in Singapore earlier. The tenants of the propoerty were actually the subsidiary of the company, so the company can afford to rent those units to them in a higher than market price. After the rental contract cease, those subsidairies cannot afford the high rental price and they moved out from the property. So the issuing company has no choice but to follow back market rental price and the whole REIT price collapsed...

So is better 4 u to go to that building n look for their directory and check the background of the companies there...

haha, just my 2 cents...

Sorry, my mistake, it shoud be 7.49 + 0.04 (not 0.4) + 0.75

So net final is 6.4

Total net = 7.04.

Appology for my mistake.

---

Added on January 15, 2008, 10:44 amYes, better to choose those management company that doesn't have clash of interest between the tenants and company management.
Those doesn't have conflicting interest Reit company tends to have high premium or high demand from the investors, while those have related one tends to have more discount on price as investors are more alert on it. Market generally is quite efficient to take care themselves on this especially in overseas when Reit market is more mature.

---

Added on January 18, 2008, 9:43 am

This post has been edited by cherroy: Jan 18 2008, 09:48 AM

Neo,
Atrium result is out, it is in line with expectation, 4Q earning 2.16 cents.
DPU is 2.3 cents.

An Ok yield.

ya, at 0.985 cent, yield is 9.34%!!!!

i think i want to sell off everything and only concentrate on REIT!!! hahaha

REXIT surged 0.250 today

this should be the reason yah : REXIT INTERNATIONAL SDN BHD SIGNS AGREEMENT WITH SOMPO JAPAN INSURANCE INC OF JAPAN TO PROVIDE e-COVER SERVICES

I thought Sompo is a partner of Berjaya Insurance. Do they have an insurance licence to operate in Malaysia /

This post has been edited by SKY 1809: Jan 21 2008, 01:59 PM