No such thing as guaranteed 10%. If yes, everyone would empty their fixed deposits and buy REITs. Since FD is the only guaranteed investment in Malaysia next to ASB. So please don't believe everything you hear or read.

REITs depends on the property market. If the property market is HOT, and rentals shoot up, the prices of REIT would reflect that. If property is in excess and rental comes down, so will your REIT prices. Appreciation in property is only paper gain until the REIT sells the property. Until it does so, it will not be reflected as profits and will not be distributed to investors of REIT. As REIT distributes 90% of its profits back to investors as dividends after management fees.

And profits meaning their rents collected, not property prices. So if a REIT reports that their property holdings has rise 50% in value, it will not benefit you until they sell that property and realised their 50% gain. As long as they hold on to that property and collect rent from it, the 50% in value means nothing to you in dividends.

This post has been edited by skiddtrader: Jun 28 2007, 02:53 PM

Hmmm Stareit is under YTL right?

hmmm rare to see REIT with such a high volume. Anything happening in the REIT market, especially with STAREIT?

Question:

The NAV stated is based on the evaluation of the properties when purchased or is it evaluated annually?

My concern is the initial evaluation during peak property prices will not reflect the true value of the REIT when property prices slump. I'm not saying it is false advertising, as the NAV is based on accounting figures.

I believe the REITs in Malaysia stagnant because there isn't much growth in their revenues or 'landbank'. Since their revenues are quite predictable as well as their DPUs, there isn't much room for them to be speculated. You could say this is the most efficient market in KLSE at the moment. It's like everyone knows how much it will earn and how much dividend it will give, so there isn't any point chasing up the price unless there is wide talk or rumours of M&A.

i read somewhere that Singapore REITs were in a bubble that has now more or less collapse.

Still has room to drop since property markets aren't gonna heat up there anymore.

Can anyone confirm that Stareit does not pay divs on 3rd quarters? Don't know why my OSK showing no divs for 3rd quarter last year. Since REITs pays at least 90% of their distributable income and seem to pay quarterly, kind of weird to miss one quarter right? Hope someone can clarify.

This post has been edited by skiddtrader: May 11 2009, 12:23 PM

Ok thanks a lot.

Yup looks right.

Prices are adjusted on ex-dates.