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 REIT, real estate investment...

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kokhoe8
post Jul 30 2008, 04:53 PM

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Hi,

I dun understand i found some reit with profit exceeding their revenue... could this happen?

thanks
kokhoe8
post Jul 30 2008, 05:08 PM

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QUOTE(cherroy @ Jul 30 2008, 04:56 PM)
Those extra profit come from properties revaluation. Under the reits listing rules, reit properties can be revalued for every 3 years in order to better reflect the properties price and reit situation.

So properties price is higher than 3 years ago, then the incremental in book value of the properties will be registered under exceptional profit.

But to see the actual situation and yield condition of the reit, look for the operating profit or net rental income.
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ok... thanks thanks... i will study further

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