dear supporter of reit, i am gathering your opinion on BSDreit before consider of buying. Sifu Cherroy has given his sight on this counter. what about your take..?

Hi Sifu Cherroy,

i know you're specialised in reit counter and i always follow your thoughts in the LYN's stock market forum. i am impressed with your strategy, views and rich in experience.

i have been aiming to buy bsdreit since last two months hoping for dividend income. during the first half the counter declared 3.69 dividend which i notice is just a small percentage of its total full year income. based on last year record, they declared a higher dividend when it come to final distribution. Below are some data which might be useful:

last 9 months eps: 10.50 cents
last div. paid so far: 3.69 cents
balance: 10.50 - 3.69 = 6.81 cents

assume 4th quarter eps is 3.2 cents, so total eps available for distribution will be 10.01 cents. let say final div. is 90% of 10.01 cents equal to 9 cents.

based on current price RM1.04 (22 Jan 09, 12.00pm), ROI is 8.65%. that is pretty good yield if i were to buy at current price.

What is your opinion sifu..is it a good buy..or probably i miss some other important information which may not favour my prediction?

I really appreciate your thought before miss this opportunity....


"Cherroy's reply......."

BSDreit just issued new share of 85 millions recently, so some dilution will occur.
Also it is trading at or near its NAV price, while most reit are trading at 20~30% discount to its NAV price, so some may be price-into the reit price which you see some good support on its share price.

The distribution will 'ex-out' the share price, so after distribution, it might trade at the region on 0.90-1.00. So short term you earn nothing out of it.

But for long term, with FD rate is at low point, (as long as they can secure long term tenants), reit might be good alternative to FD. --end

though the dividend declared lower than expected due to earning dilution, i am happy earning 7.34 cents per share translating to 6.9% immediate yield.

thanks cherroy..you really make me fall in love with reit counter...

it depends on your preference whether to buy before ex or after ex. just different in individual strategy. i have been holding this reit since its IPO. so far never missed receive the cheque every 6 months. the price has been stagnant at 72cent for quite sometime. i started accummulate with the intention to keep it long term at the ROI 9% - 10% annually. any price appreciation will be a bonus for me. at the current scenario, it is almost no chance for any unit trust (FD dont have to mention la) to offer more than 8% return.

the tenants under arreit property (13 properties altogether) are all under long term lease aggreement for 10 years. the soonest one if i am not mistaken will be in 2015. need to check back their annual report..

jordy, that is the weakness of arreit and i concur with you. prospect for price appreciation is limited and slow moving. as for me, i dont mind as long as meeting my target.

for those who intend to buy this reit, here are some info on arreit's tenants and properties portfolio:-

1. Holiday Villa Alor Setar
age of property 14 years, lease period 10 years from june 2006, occupancy 100%, rental per month rm173,083.33, next rental review june 2009

2. Holiday Villa Langkawi
16 years, lease 10 years from july 2006, 100%, rm307,083.33 per month, next review july 2009

3. SEGi College
3 years, lease 15 years from may 2006, 100%, rm261,625.00 per month, next review may 2009

4. SEGi College, Kota Damansara
2 years, lease 10 years from december 2007, 100%, rm870,000.00/month, next review december 2009

5. Block A & B, South City Plaza
4 years, lease 10 years from august 2006, 100%, rm100,500.00/month, next review august 2012

6. Wisma Amanahraya
42 years, lease 6 years from august 2006, 100%, rm450,635.40month, next review november 2009

7. Wisma Amanah Raya Berhad
10 years, lease 9 years from november 2005, 100%, rm302,781.98/month, next review november 2009

8. Wisma UEP
12 years, tenancy 3 years from september 2007, 100%, rm175,000.00/month, expiry september 2010

9. Permanis Factory
21 years, lease 10 years from june 2006, 100%, rm157,250.00/month, next review june 2011

10. Tamadam Bonded Warehouse
30 years, lease 10 years from january 2007, 100%, rm179,025.00/month, next review december 2010

11. AIC Factory
5 to 13 years, lease 10 years from september 2006, 100%, rm110,833.33/month, next review september 2009

12. Silver Bird Factory
4 years, lease 10 years from october 2006, 100%, rm570,000.00/month, next review october 2009

13. Gurun Automotive Warehouse - tenant NAZA group
2 years, lease 10 years from december 2007, 100%, rm159,800.00/month, next review december 2010

already letih my hand typing so long. hope this help you guys to make decision before jump in.

comments on properties are most welcome..we share-share opinion..

guys..another cheque coming up. bsdreit declared interim DPU 3.69 sen/unit.

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Added on July 23, 2009, 2:40 pmwelcome on board

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Added on July 23, 2009, 3:44 pmhektar is the next target to declare DPU 2.4sen..cant wait how much their profit for the 2nd quarter.. any growth profit will indicate a much better DPU in the last quarter...

This post has been edited by sopol: Jul 23 2009, 03:44 PM

ya jordy..you better dont if you are unfamiliar with it. as for me, i already got it much earlier. me actually anticipating another 7.xx sen in the next DPU announcement...

panajie..yes i am holding non-reits as well. last time i trade quite frequents but end up losing money especially the goreng-goreng one. now do some balancing in my portfolio (reits, dividend counters and gorengs also got..he.he.)...and it worked very well. no longer cemas when leave the screen...

i only got 3 reits. regret didn't buy the most cun counter "axreit" when it bottomed 1.00 last time..one click away 'confim button' only..

still evaluating to buy another one reit which i consider able to give me at least 9% yield/year. and to increase my holding in the 2 existing reits that i currently have..

ha.ha.ha. you read my mind. amfirst is one of them..still got another 2

arreit inching up 0.5 cents every day..

i echoed this statement. i presume the fund manager has started feeling 'bullish' and now want to shift the money to more high beta stock not the turtle (reits) counters...

or probably there is something amiss about hektar which we don't know yet..a quite substantial holding in hektar are held by people from well connected people..don't forget that budget announcement is coming soon..

by the way, i am still holding my hektar.. if drop more, no problem for me to catch..

past records show they will announce in early of february. probably next week. predicting 3 cents divy!

no mean asking you to buy

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Added on January 29, 2010, 12:22 pmanother one bsdreit haven't declared their divy.... 7.5 cents probably today or next week

This post has been edited by sopol: Jan 29 2010, 12:22 PM

bsdreit declared divy 5.61 cents . very-very dissappointed it should be no less than 7 cents. why the reit manager so stingy hah? earning not so bad eps 14.xx cents but divy so low. what are you planning to do with the balance? must sell after ex...

as expected...bsdreit performs badly today. drop 3 cents due to low divy announcement. 2008 was 11.03 cents but drop to 9.3 cents for 2009.

hektar is the next one to announce their earning report and divy

just unloaded my arreit by half of my total holding (profit from capital gain). another half is for divy play..

i think today or tomorrow. the announcement should not go beyond this week otherwise something wrong may be happening...

just for record purpose, hektar has declared dividend 3.1 cents i am satisfied

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Added on February 2, 2010, 9:34 pmjason, poor you no one has answered your query yet. hopefully there will be a sifu attends to you soon.

as for me, i never paid attention to it..the more important is the ex-date and payment date..that is matter in determining the entitlement of dividend and get paid..

This post has been edited by sopol: Feb 2 2010, 09:34 PM

if look at the current report, yes hektar (3.1 cents) is lower than qcapital (3.9 cents). if look back 12 months then you will know hektar's total pay out is 10.3 and the payment is every quarter. while qcapital is 7.68 cents and the payment every 6 months.

hope this will help you know the real situation. anyway it is good earning ang pow for cny

morning guys. so quiet this thread. went back to kampung already ka?

already disposed off the under performer bsdreit just before ex. missed divy but gain if compared with the amount of the price adjusted after ex yesterday. - 7cents with the closing price 1.30!

will look again after first q report or price drop to 1.20...

i believe handsome neo also busy disposing his as well...

selamat tahun baru cina to all my kawan-kawan...safe drive and enjoy, then come back to spam here again..