Hi cherroy,

How do you derive 12.5% gross yield? klsetracker showing only about 10+%?

Hi,

How do we account for dividends from Reits for tax purpose? Does the company give it net of 10% tax? Do we have to pay tax on the net proceeds received again? I remember for share was like we declare the gross dividends as income and then claim back the tax rebate or something? thx

Hi Jordy,

What do you mean by increase net yield by 2%? How? Magic ah?

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Added on July 25, 2009, 4:26 pm

Do you guys own properties personally for investments? It is true that it is less liquid but investing personally allows you to have higher leverage provided you get some high yield properties. If you have rm100k, you can invest in properties up to a million. Imagine the leverage when capital appeciation is factored in. For REITS, the higher yields are partly from the leverage employed by the REITs itself so in that sense, reits is interest rate sensitive too, just like bonds. If you own properties directly, you can have fixed rate loans removing the interest rate risk in case there is a sudden spike up like in Asian Fianancial crisis. Looking for some views here. Personally, I like reits for its convenience because I don't have to do anything like property owner but I am also thinking hard again which way is better.

This post has been edited by constant: Jul 25 2009, 04:26 PM

Is there something wrong with ARREIT. Its price stays so low even when all the REITS have gone up so much? Maybe investors are not confident with the either the quality of the management or the properties they are holding. Anyone has any idea?

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Added on July 26, 2009, 6:13 pmActually, the gearing of our local REITS are not that low either. That is why I have also considered investing in SREITs because for the same amount of risk, the returns are about 50% better for some of the Sreits. Cherroy mention the quality of the earnings (not depreciation) but I do not know what he means. Some of their reits are trading at much lower than NAV price. So, instead of being satisfied with the 10% yield in local reits, why not invest in sreits and get 13%-15% returns.



This post has been edited by constant: Jul 26 2009, 06:13 PM

I think NAV is just like NTA and is already net of loans.

Sorry, I am not clear on what you say. Are you saying the DPU is "artificially high" for the SREits because there was a bubble before collapse? So, you think the DPU for these Reits will come down and make yields lower?