Comments on: Malaysia REITs – The Sunrise Industry

By: larry

larry — Thu, 14 May 2009 05:26:39 +0000

Hi Alvin, 1utama is a privately held asset, owned by See Hoy Chan group I believe. We are currently working on a REIT portfolio section, you can also download a copy of the Starhill REIT & Hektar annual reports from Bursa Malaysia website, it will have the property portfolio info there.

By: Alvin Lim

Alvin Lim — Sun, 10 May 2009 08:48:53 +0000

Was looking around for Malaysia’s REIT. Not well-versed in it actually. Actually, I’m interested in Hectar and Starhill. One question, which REITs have lots in 1u? and is there a place for us to view their portfolio? Some of the web sites are not working =_=

By: Gurdev Singh

Gurdev Singh — Tue, 31 Mar 2009 01:14:31 +0000

Starhill Reit operates J W Marriot which accounts for 24%, while the residences make up 9% of it’s portfolio. The rest are Lot 10 (24%), Starhill gallery (35%) and cash deposits (8%). Hope that helps.

By: larry

larry — Mon, 30 Mar 2009 04:29:43 +0000

Starhill REIT owns and operates a hotel & serviced apartments. This is different from passive ownership of property. Hotels are more like a business where the operator needs to actively manage its occupancy, room rates, F&B operations, marketing strategy etc. Customers of hotels are mainly travellers staying for a couple of nights, in contrast to tenants on long term leases.

Boustead REIT is an interesting one. It collects a fixed rental from its plantation assets plus a share of the operating profit of the plantations. So if CPO prices are down, it would affect their earnings too although not as much as mainstream plantation companies such as IOI and KLK.

By: Martin Chai

Martin Chai — Sun, 29 Mar 2009 08:46:23 +0000

Appreciate it if you can elaborate further on the business risk in REITs like Starhill REIT and Boustead REIT. Did you mean that these REITs are different from the rest?

By: larry

larry — Sat, 28 Mar 2009 03:52:40 +0000

Hi Remus, thanks for spotting the error, I have changed it BTW you have a very informative site on M-REITs, keep up the great work!

By: Remus

Remus — Fri, 27 Mar 2009 15:30:06 +0000

AXIS REIT NAV is RM1.75 not 2.17.
Check below link, http://mreit.blogspot.com/2009/03/march-2009.html

By: larry

larry — Fri, 27 Mar 2009 06:30:39 +0000

Bryan – Thanks bro, glad u r blessed!

Bernard – Under our tax laws REITs are tax transparent if listed on the Bursa Malaysia and meet Securities Commission guidelines. They are tax exempt at the trust level on net income provided 90% of total income is distributed to investors.

Sally – That’s great. I’m sure you are enjoying the lucrative yield on your investments, will write the article next couple of days.

Alan – yes absolutely correct. Some REITs like Starhill REIT are feeling the pinch from their tourism assets, one of Atrium’s main tenants is vacating their Shah Alam property and so on. But in a way, its factored into the price. I bought a couple of lots in Atrium anyway coz it’s so dirt cheap. Should be some upside if they find a new tenant, otherwise will still be OK to collect 11% yield hehe.

HW, high discount is good… just like JUSCO sale It basically means the market price of the unit on Bursa Malaysia is less than the book value of the net assets as stated in its Balance Sheet.

By: hw

hw — Fri, 27 Mar 2009 03:13:02 +0000

Hi,
The higher the discount NTA is not a good thing right? As REIT is mainly generated income form the property(assets), so which by means that the higher discount of NTA means u are buying it at a higher price of its asset. Can u clarify me at this point.

thanks!

By: alantanblog

alantanblog — Fri, 27 Mar 2009 02:50:09 +0000

With the business slowly down & the tenant of REIT may shift to other place or building, REIT may not be attractive at this times even the price is below NAV. Just hold yr gun