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.

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

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

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

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

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

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

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

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%

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.

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.

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.

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

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

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.

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.

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%.

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

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

I will have my drink soon

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