Just wondering if all the REIT investors (or soon to be) here realised the other side of REIT as highlighted in theStar REIT's High Yield And Risk.

I think there's a point there for us to ponder upon where our Malaysian REIT will be few years down the road especially if all our REIT income (90%+) is being redistributed back as dividend. Besides what has been highlighted in theStar article such as high debt ratio and lack to funds set aside to service the loans made to acquire new properties, I do have some additional points... As the current properties in the REIT's portfolios are still relative new, it should be alright. But what happens say... 5-10 years later. Some properties do need to be refurbish, renovated or some major uplift of facilities in order to stay competitive in the rental market. Where are the fund managers going to get the funds besides diluting our REIT shares with new units issued? Or increasing their debt ratio?

So... based on theStar article, it seems like Axis and Hektar has more than 50% debt/equity ratio. So shouldn't SC be knocking on the REIT manager's door to get them to reduce it to below 50% soon?

Haha... that's something to lookout for... some positive news in the pipeline for AXREIT?

wow... Axis REIT 1Q dividend is a little above my expectations, almost 4cents

Axreit on the rally... 1.45 now

I realise many in here are holding alot of Axreit (e.g. Neo, Cherroy). Can practically have bonus every 3 months now.

When the proposed placement happens, does it mean that existing unit holders share value will drop? How does it affect existing holders?

For example (simple calculation), today's price is RM1.00 and the new placement will also be at RM1.00. If I own 1000 units prior to the placement, does it mean that after the placement I'll have additional 47% units (1470 units)? Or will my 1000 units be priced at a 47% discount (RM0.54?)

Thanks,

Thanks Cherroy...

So that means existing units will remain at market price. Just that we "might" get lesser dividends since the 1000 units is diluted and sharing the profits with more unit holders. Now I understand...

Axis REIT

I do share the same sentiment... I don't think the yield of PKNS assets will boost the REIT that it will inject into. I fear it would bring more negativity than positivitity. In my opinion, I feel PKNS is just dumping their assets into the REIT to cash out since most of it are quite run-down. Just my 2 cents

Looks like the revamp of Axis REIT 'icon' news is bringing the price down to below 1.4. Or maybe it's the PKNS effect... anyhow, anyone getting more? My hands feeling itchy now

Becoz it will drag down the value of Axreit.

PKNS will inject property which are basically quite run-down into Axreit portfolio (or whatever REIT portfolio for that matter). A run-down property do not fetch good rental income and thus will lower our dividends. And in worst case scenario where PKNS take management control, it may turn all the well managed property portfolio in Axreit into run-down property like how PKNS manage their existing property. So in the long run, the returns will only go downhill. That's why it's viewed as a bad news...

Well, we're just minority shareholders... can only hope for the best.

Hmm... I can't seem to find the Ex-Date for AXREIT 2Q 4.1c Dividend, any idea? Press release seems to left out this info. Maybe I overlook it somewhere... anyone mind to enlighten me?

As far as I know, all our REITS are only paying the interest portion of the loans taken to purchase properties and distribute the remaining rental income (less operation cost etc) to shareholders. Well, as shareholders I have no complains on that... yielding ~10% pa in dividends. But here's my question... why aren't the REIT managers payback the banks more to reduce the loan borrowed? Thus reducing the debt and gearing level? It'll probably reduce the dividend in the short term, but would be better cushioned from interest rate hike.

I don't know much about twisting numbers and turning it into profits, but the recent financial crisis is very much due to smart financial people twisting numbers and turning it into profits. Perhaps I'm a little old school... like the above mention example, 100k for a 1mil property with no intention to payback the 900k loan (just interest payback) sounds like "playing with numbers".

This abandoned project in Klang may finally be revived if ALAQAR successfully take over. This building is probably 90% complete without CF. So ALAQAR will hv to finish the construction and furnish it... But aren't REIT in M'sia cannot be involved in construction?