Individual REIT might have their own policy on property valuation, they whether use historical cost (unlikely) or fixed interval re-valuation. Most of them doing that for interval of 1 or 2 years, some 3. NAV going up and down with the valuation, whether or not the NAV is correct vary depending on the point of valuation. And true, that's just accounting figure and doesn't mean anything when they have to liquidate the asset during extraordinary time (I like the word 'extraordinary', that can mean anything ).

Less 25% tax deducted at source (17 sen * 0.75 + 14 sen). Can claim back when you submit your tax return (providing your tax bracket lower than 25%, which most of us did).

miss out some words.

This post has been edited by htt: Nov 7 2008, 08:20 AM

Really cannot claim back? That's not standard practices for other parts of the world leh. Maybe I too long away from our bolehland liao

But the budget 2008 said:
Companies with credit balance of section 108 account which do not elect to switch over to the single tier system are allowed to use the credit balance for purpose of dividend distribution during the transitional period of 6 years until 31 December 2013. The mechanism and conditions to utilise the credit are as follows:
i. the credit balance of section 108 account allowed for the purposes of dividend distribution to the shareholders is the balance as at 31 December 2007;
ii. the credit balance of section 108 account will be adjusted only for tax reductions;
iii. company that has fully utilised the credit balance of section 108 account at any time during the transitional period will automatically move to the single tier tax system;
iv. all companies will automatically move to the single tier tax system on 1 January 2014 even though they still have credit balance of section 108 account as at 31 December 2013;
v. maintaining the current provision of disallowing companies which take over other companies to acquire the credit balance of section 108 account;
vi. companies are only be allowed to pay cash dividend; and
vii. for small and medium companies, tax on dividend paid to shareholders is deducted from the credit balance of section 108 account based on the highest current tax rate.
Conditions for shareholders to claim tax crediti.
i. Only direct expenses related to dividend income are allowed to be deducted in arriving at adjusted dividend income;
ii. The claim for tax credit is only allowed for shares held continuosly for 90 days or more from the date of purchase of shares (excluding public listed companies);
iii. Only dividend distributed from ordinary shares are eligible for tax credit; and
iv. Dividend income of shareholders of a company which is not from business source is not allowed to be aggregated with other income in the computation of chargeable income. This condition is not applicable to entities other than a company.

This post has been edited by htt: Nov 7 2008, 08:54 AM

Oic, I thought our bolehland can innovate and create a tax system total opposite the rest
The future until 2013, that's very long time for me
But those with Section 111 tax credits still can continue paying out imputation dividend, and their shareholder can continue to claim back 'tax difference from their highest tax bracket', until tax credits exhausted or 2013, which ever come earlier

For one-tier dividend, no need.

If imputation dividend amount to RM1,000 distributed to a rich (highest tax bracket at 28%) and a middle (highest tax bracket at 10%) shareholders.
When they submitted their tax return at the year end.
Rich shareholder no need to pay tax for the dividend, and cannot get refund (or reduction) of tax paid at source because his tax bracket is 28% which appear to be higher than 26%.
Middle shareholder can claim back 16% of RM1,000 (RM160) as tax deducted at source because the tax need to be paid for him is 10% but 26% had been taxed by government. He can use the RM160 to offset his tax or get cash back if his difference between tax deducted at source and his highest tax bracket is more than what he supposed to pay.

Under One-tier tax system, they both cannot claim back. This is no harm to rich shareholder but there might be some for the middle.
Under one-tier system, company pay the final tax and dividend is 'not tax deductible' in the hand of shareholders (I think that's just to beautify the system).

Hope I make the thing clear.

Axis Reit distribution 3.81 sen for last Q.

I think you are taking high risk on that, expert are doing carry trade with cheap yen but when all rush to close their yen position, they get stuck in between. And interest will fluctuate, and REIT might night maintain the DPS if they are not getting enough cash from their tenants. Another thing you need to take into consideration is the gearing of the particular REIT, if the REIT have some gearing, please check the term of the debt (short or long, fixed rate or variable etc). Good luck on that.

Just my kehpoh 2 cents.

Sometime think I am too old to take risk. Good luck all.

Debt/ Equity ratio of more than 50% might be bad, but it still down to the terms of the debt, if the debts are long term, not that serious, but short term one more dangerous.

Gearing of 50% can allow maximum debt/equity ration of 1:1 (or 100%), if all the debts are non current. Then even 71% still within the guideline.