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 REIT, real estate investment...

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kmarc
post Dec 16 2008, 11:10 AM

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I think I understand about REITS... more or less...

Just a noob question. In current market, why REITS instead of good dividend stocks with possibility of higher capital appreciation? hmm.gif

This post has been edited by kmarc: Dec 16 2008, 11:25 AM
kmarc
post Dec 16 2008, 11:38 AM

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QUOTE(cherroy @ Dec 16 2008, 11:31 AM)
No, stock has more room for capital appreciation. Reit is more about getting the distribution only.
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I understand. That's why I asked the question. If a stock has more room for capital appreciation and projected to give good dividends, why not go for those stocks rather than REITS? Of course, good dividend stocks are usually defensive and doesn't appreciate much, right?

As I understand it, REITS will give good distribution but like stocks, the dividends might not be that high, looking at current markets.

I just want to understand this part. If REITS has it's extra advantages, I want to get some too! thumbup.gif

Just an example:
UCHITEC - current price 0.97. Target price RM2.00. Projected dividend FY09 - around 15%! drool.gif (Tomato sauce : BNPP securities - market trends (Dec 2008))

This post has been edited by kmarc: Dec 16 2008, 11:42 AM
kmarc
post Dec 16 2008, 06:00 PM

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QUOTE(Neo18 @ Dec 16 2008, 12:05 PM)
For UCHITECH, on the 25th November 2008 as per their 3rd quarter earning, standard and poors gave a HOLD rating and 12 month target of RM1.09 and not as claimed RM2

UCHI is a unique case because it's the TOP of the pile for dividend yield stock that pay 70% of their income.

however, when economy situation detioriorate  income become less, dividend become less too.

Also, stock dividend is subjected to 25% tax. Therefore, not so attractive to me.

If i were u, buy gamuda better
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Errr..... the target price (TP) is from BNPP securities.... just a projection from them... wink.gif

For GAMUDA, one research house gave a TP of RM3.55 while another was RM2.37. DY for FY09 projected at 11.4% while the other project it at 15%!!!

GAMUDA is also under my radar.... just that the stock price has increased a bit...... will grab some if it comes down....

QUOTE(cherroy @ Dec 16 2008, 12:54 PM)
For normal stock, business needs to make a profit to pay you the dividend, so no profit, no dividend or can't sustain the dividend.
For reit, as long as there is tenant and rental, then you know the distribution is there.

For normal stock, company can go burst and become zero.
For reit, whatever, you still have the property left.

Actually can't compare directly between both as risk involved and nature of business/company is totally different.
It is more like compared apple and orange.
*
I see.... I guess I can sort of say that REITS is something like UNIT TRUSTS.... less risk and less return, right? blush.gif

This post has been edited by kmarc: Dec 16 2008, 06:00 PM
kmarc
post Dec 16 2008, 10:59 PM

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QUOTE(darkknight81 @ Dec 16 2008, 08:59 PM)
Pending news on their private placement.


Added on December 16, 2008, 9:03 pm
Reits - Real estate investment trust

Is an properties investor who bought properties and rent it out. Being one of the unit holder you basically own part of the properties. So the return on the rental will be distributed back to you around 90%.

The only thing you expect your reits to go up is that the properties value on the particular reits go up.

So before you choose any reits, the most important thing you got to analyse is the type of properties that reits own and you got to judge at your own on the properties future prospect.
*
Thx for the explanation. I think I'll go for stocks at the moment. Will consider REITS in Q2-Q3 '09......

kmarc
post Dec 20 2008, 10:22 PM

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QUOTE(darkknight81 @ Dec 20 2008, 09:28 PM)
Normally i make my stock pick up payment via check or cash sometimes (if the amount is few thousands).

Today is my first time i use interbank transfer from my CIMB to my brokerage Hwang DBS (RHB) for my axreit pick up.

Any one got do this before? Any risk?

It will be easier for me next time as i no need to go bank to open cheque and easier.

All sifus there pls share you experience on interbank fund transfer for your stock pick up.
*
You mean interbank transfer to your trading account? I do interbank transfer quite frequently.... between HSBC, AMBANK and MAYBANK. No problems so far. Just that for interbank transfer, you have to wait a day or two before the money is transferred.
kmarc
post Jan 5 2009, 07:32 PM

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Anybody knows why ARREIT dropped so much? hmm.gif
kmarc
post Jan 5 2009, 08:59 PM

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QUOTE(darkknight81 @ Jan 5 2009, 08:53 PM)
I sold all my axreit as i see it is quite hard for it to reach RM 1.00 again for me to buy more.... So might as well sell off and look for me next target  laugh.gif
*
What's your next target? I got no target at the moment.... sad.gif
kmarc
post Jan 5 2009, 09:33 PM

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QUOTE(darkknight81 @ Jan 5 2009, 09:21 PM)
maybe

axreit (if reached RM 1.00 again  biggrin.gif )
ytl power
amway
jtinter
bjtoto
ytl corp
ioicorp
and many more as long as the price looks attractive for me
*
Now all the prices doesn't look attractive to me...... sad.gif
kmarc
post Jan 5 2009, 09:35 PM

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QUOTE(cherroy @ Jan 5 2009, 09:34 PM)
Arreit liquidity is low, and seldom being traded at all. So even 1 lot can swing the price greatly, as there is large gap between buy and seller most of the time.
*
I see..... thx.

Will be looking at REITS in the future...... hmm.gif
kmarc
post Jan 30 2009, 08:07 PM

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Al-Hadharah Boustead REIT to give another 7.34 cent dividend, almost as good as the upcoming 7.87 cent dividend by AXREIT:

http://www.theedgedaily.com/cms/content.js...d8dc00-1c201111

Think I'm gonna grab some.... hmm.gif

This post has been edited by kmarc: Jan 30 2009, 08:10 PM
kmarc
post Apr 29 2009, 09:06 PM

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Guys, I'm fed up of waiting for the stock market to drop. Thinking of starting some accumulation of REITS soon. Which would you guys recommend first. I know the favorites are AXREIT, HEKTAR and QCAPITA.

AXREIT is a bit too high though..... right? hmm.gif
kmarc
post Apr 29 2009, 09:16 PM

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QUOTE(cherroy @ Apr 29 2009, 09:15 PM)
If you never see 1.00, I don't think you will see it is high with 15-16 cents DPU.

To buy any stock, don't look at its lowest price to determine whether it is low or cheap or not. It is irrelevant and not a good gauge for judgement. If so, one will lose a lot of opportunity in the future.

I already see it attrative back 1.6x time, and already bought and all the way until 1.00 (a lucky get at lowest)

Don't mean 1.50 is cheap or expensive though.
*
So you're saying that if I were to choose only one REIT, I should go for AXREIT right? hmm.gif
kmarc
post Apr 29 2009, 09:43 PM

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QUOTE(cherroy @ Apr 29 2009, 09:34 PM)
Not what I mean, just please don't look at their lowest point to include your judgement on buy and sell decision.

But Axreit is the most diversified among the local reit.
*
I see...... thx for the info.

Might just grab some Hektar and Qcapita while waiting for Axreit to come down..... see see how....
kmarc
post May 20 2009, 10:31 AM

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QUOTE(panasonic88 @ May 20 2009, 10:04 AM)
me. bought at 84 sens.

anticipating a 3.xx sens DPU in early June.

- distribute div based on semi-quater
- January gives 4.xx sens
- June gives 3.xx sens
- a total of 8.xx sens, which is approx 9-10% based on today's price
*
Me partial match at 0.84 mad.gif
kmarc
post May 20 2009, 12:35 PM

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QUOTE(cherroy @ May 20 2009, 11:06 AM)
Aiseh, ahead of me, today buying at 0.84 to join in.  icon_rolleyes.gif
*
Mine all matched at 0.84 rclxms.gif

How come you so slow leh? Me fast fast today as I'm on emergency leave.... biggrin.gif Maybe I should take more leave..... whistling.gif

This post has been edited by kmarc: May 20 2009, 12:35 PM
kmarc
post May 20 2009, 01:32 PM

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QUOTE(panasonic88 @ May 20 2009, 12:57 PM)
Reits... no rush to buy ler, slow slow accumulate. i have get ready more cash to "sin" at 80 sens. cherroy you don't "chiao" with me okay!! tongue.gif
*
Owh... like that one ka? I thought have to rush like normal shares.... laugh.gif
kmarc
post May 20 2009, 08:59 PM

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QUOTE(Jordy @ May 20 2009, 08:29 PM)
I guess we can applaud our Malaysian system at times like this. Those economies with property bubbles are facing the music now for their greed (namely US, Europe, Australia). That is why our REITs still stable. On why our REITs plunged when property bubbles burst and global recession, is because of fear. It's common for people to fear. Just like yesterday when AXREIT dropped, people scatter. Fearless people who bought at 1.35 yesterday can already earn 5sen today smile.gif

So we can easily predict REITs, that is why I am sticking with REITs. I am not going to get involved with normal stocks until I have extra cash smile.gif

P.S. I even sent an article to Personal Money "Question of the Month" section on REITs, due to release for next month's issue. I hope I can be one of the featured article tongue.gif

On QCAPITA, I think some of you might want to rethink your decisions. A rough study on the annual report tells me that they are holding to some low-yielding properties (as low as 1% pa). So, I don't really have faith in its management as their cash is not utilized efficiently. I will do a more thorough study on its property yields and post it here later.
*
Alamak! Really ka?

Please give any info if you dig out anything. I just bought some today! doh.gif
kmarc
post Jul 24 2009, 12:27 PM

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QUOTE(Jordy @ Jul 24 2009, 12:13 PM)
Long time no news from you tongue.gif
We were just getting hyped up with the recent run up of REITs brows.gif
*
Yeah, REITS, the turtle stocks, climbing slowly everyday. Come to think of it, it is exactly like the turtle & rabbit story. Wished I bought more turtles.... blush.gif
kmarc
post Jul 24 2009, 01:01 PM

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QUOTE(SKY 1809 @ Jul 24 2009, 12:31 PM)
The next price depression.
*
Errrmmm... don't understand! tongue.gif

QUOTE(Jordy @ Jul 24 2009, 12:39 PM)
Haha, guess you really learned your lesson not to mess with turtles smile.gif

But I don't really look forward to capital appreciation in REITs because I can only see the paper profits, but I can't touch it sweat.gif
*
Hey, that's true leh... paper profits only, nice to see, cannot touch.... sad.gif

I blamed Cherroy for not forcing me to buy REITS. innocent.gif I remember last time when I was asking him about REITS (AXREIT was at RM1.00), he said not bad, can buy, but judge your own. He should have said "I have EVERY confidence in REITS. Gives you GUARANTEE returns and possible CAPITAL appreciation. Don't look at it as TURTLE stocks as there may be NINJA TURTLES in those REITS too. BUY BUY BUY. BTW, I have a fortune in REITS!". Would have dump all my money into REITS..... whistling.gif

Haha, jokes aside, now that I know what is REITS, I will definitely buy some more next time......
kmarc
post Jul 24 2009, 02:16 PM

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QUOTE(Jordy @ Jul 24 2009, 01:33 PM)
Price to valuation wise is still quite low for some other REITs. There are 11 listed REITs, so I don't think the focus is only on AXREIT (although it is the preferred one at the moment). Look around and choose one REIT which operates in an industry you are familiar with. There are REITs in 'rojak' industry, logistics, retail, palm oil, hospitality, medical, etc.
*
I guess so. I'm holding Qcapita and Hektar at the moment. Follow recommendation from you guys...... notworthy.gif

I don't think I will buy some more at the moment. Wait for the prices to come down. If it doesn't, it's not a problem too as I'm not desperate to get them.....

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