Comments on: Starhill REIT to sell Lot 10 and Starhill Gallery http://www.horizon.my/2009/11/starhill-reit-sells-lot-10-and-starhill-gallery/ Online Investor Fri, 13 May 2011 01:11:24 +0000 hourly 1 http://wordpress.org/?v=3.2.1 By: Vincent http://www.horizon.my/2009/11/starhill-reit-sells-lot-10-and-starhill-gallery/comment-page-1/#comment-8920 Vincent Tue, 24 Aug 2010 09:20:45 +0000 http://www.horizon.my/?p=1056#comment-8920 Wow, fantastic. I've stopped investing in stock market since 5 months ago due to I'm not so clear on my stock investment direction. I just reactive back myself very lately. So just drop by to say hi. Wow, fantastic.
I’ve stopped investing in stock market since 5 months ago due to I’m not so clear on my stock investment direction. I just reactive back myself very lately. So just drop by to say hi.

]]> By: larry http://www.horizon.my/2009/11/starhill-reit-sells-lot-10-and-starhill-gallery/comment-page-1/#comment-8820 larry Sat, 21 Aug 2010 03:14:14 +0000 http://www.horizon.my/?p=1056#comment-8820 Hi Vincent, great to hear from you. I still have a bit of Tower REIT, just in there for the yield to balance other growth stocks in my portfolio. And Yes, still watching the market and buying selectively over time. I've added a bit more Plenitude, now waiting for their results announcement which should be coming up soon. From there, will decide whether to add more or not. How are your investments coming along? Hi Vincent, great to hear from you. I still have a bit of Tower REIT, just in there for the yield to balance other growth stocks in my portfolio. And Yes, still watching the market and buying selectively over time. I’ve added a bit more Plenitude, now waiting for their results announcement which should be coming up soon. From there, will decide whether to add more or not. How are your investments coming along?

]]> By: Vincent http://www.horizon.my/2009/11/starhill-reit-sells-lot-10-and-starhill-gallery/comment-page-1/#comment-8802 Vincent Fri, 20 Aug 2010 15:08:12 +0000 http://www.horizon.my/?p=1056#comment-8802 Hi Larry. How are you? Long time did not hear from you. I hope you are still active in stock market and REIT? Or I should ask, are you still holding TWRREIT? Regarding PLENITU you recommended last time, it has raised to RM3.59 today. Good job! I hope you are still holding it? Hi Larry. How are you? Long time did not hear from you. I hope you are still active in stock market and REIT? Or I should ask, are you still holding TWRREIT?

Regarding PLENITU you recommended last time, it has raised to RM3.59 today. Good job! I hope you are still holding it?

]]> By: larry http://www.horizon.my/2009/11/starhill-reit-sells-lot-10-and-starhill-gallery/comment-page-1/#comment-5143 larry Tue, 02 Mar 2010 13:06:29 +0000 http://www.horizon.my/?p=1056#comment-5143 Hi Vincent, I finally had time to study BSD REIT 2009 results in more detail and wasn't too impressed with it. If you strip out the property revaluation and profit from property sale, their result is not that impressive. Management said that average palm oil price achieved was lower than 2008. I actually sold some of my BSD REIT today. Comparitively, Tower REIT 2009 results looks quite nice although occupancy levels for Menara HLA and HP Towers took a dip at year end. But Menara HLA occupancy should be back above 90% on average for 2010. Most REITs are always on the acquisition trail but Tower REIT is very conservative when it comes to this, they have a pretty strict criteria which is good for us investors. Alaqar has structured returns worked out with KPJ Healthcare. As long as interest rates remain steady, they distributions should be quite decent. Hi Vincent, I finally had time to study BSD REIT 2009 results in more detail and wasn’t too impressed with it. If you strip out the property revaluation and profit from property sale, their result is not that impressive. Management said that average palm oil price achieved was lower than 2008. I actually sold some of my BSD REIT today. Comparitively, Tower REIT 2009 results looks quite nice although occupancy levels for Menara HLA and HP Towers took a dip at year end. But Menara HLA occupancy should be back above 90% on average for 2010. Most REITs are always on the acquisition trail but Tower REIT is very conservative when it comes to this, they have a pretty strict criteria which is good for us investors. Alaqar has structured returns worked out with KPJ Healthcare. As long as interest rates remain steady, they distributions should be quite decent.

]]> By: Vincent http://www.horizon.my/2009/11/starhill-reit-sells-lot-10-and-starhill-gallery/comment-page-1/#comment-5119 Vincent Fri, 26 Feb 2010 04:23:30 +0000 http://www.horizon.my/?p=1056#comment-5119 Hi Larry, Noted and thanks for your comment. After hearing from you, I did some study on these 3 REITs again, and I would like to share with you what I found out. BSDREIT PE seems like attractive among the 3 REITs discussed above, as well as the lowest gearing. However, it is only involved in plantation real estate so far. They have plan to acquire more lands for more income, which is good. For TWRREIT, it only has 3 buildings with satisfying occupancy rate btw 71-100% so far. The management promised to increase the occupancy rate for HLA and HP tower. I wonder it has any plan for building acquisition this year? As for Alaqar, it seems it has the highest gearing, with the highest average borrowing cost. In fact, it is consider okay because it has so many hospitals as a income foundation. However, it's PE is running close to 13. And all 3 REITs offering around the same D/Y @ 8.x. Seems like you have made the wiser choice of picking the 2. For conservative people like me, I would pick these 2 REITs too. :) I wonder you have anything to add on. Hi Larry,

Noted and thanks for your comment. After hearing from you, I did some study on these 3 REITs again, and I would like to share with you what I found out.

BSDREIT PE seems like attractive among the 3 REITs discussed above, as well as the lowest gearing. However, it is only involved in plantation real estate so far. They have plan to acquire more lands for more income, which is good.

For TWRREIT, it only has 3 buildings with satisfying occupancy rate btw 71-100% so far. The management promised to increase the occupancy rate for HLA and HP tower. I wonder it has any plan for building acquisition this year?

As for Alaqar, it seems it has the highest gearing, with the highest average borrowing cost. In fact, it is consider okay because it has so many hospitals as a income foundation. However, it’s PE is running close to 13.

And all 3 REITs offering around the same D/Y @ 8.x. Seems like you have made the wiser choice of picking the 2. For conservative people like me, I would pick these 2 REITs too. :)

I wonder you have anything to add on.

]]> By: larry http://www.horizon.my/2009/11/starhill-reit-sells-lot-10-and-starhill-gallery/comment-page-1/#comment-5103 larry Wed, 24 Feb 2010 04:24:30 +0000 http://www.horizon.my/?p=1056#comment-5103 @Vincent - Yep I'm a little uncomfortable with AmFirst gearing myself. Also not too sure about the Summit USJ property. Starhill REIT is in a bit of limbo right now, the picture is not so clear until we know what assets go in and at what price. I quite like Alaqar as well (although I don't own any units), you can check out the earlier interview we had with their CEO, I mentioned to them that it would be nice if gearing can come down a bit. BSD REIT at under RM1.30 should be decent buying for the medium term, likewise Tower REIT at under RM1.10 would be OK. All these can potentially get you 12% total return over the medium term at decent risk levels. If you have a bit more risk appetite, take a look at Property Developer PLENITUDE. I've bought some yesterday and today at RM2.73 to RM2.80. The company has a market cap of of around RM380 million and Net Cash of RM230million+. It's one of the rare property developers with a consistent earnings and dividend track record. @John - YTL Corporation certainly can do with a cash injection. I agree with you on the asset injection part, I don't think it'll come at a fair price to STAREIT investors. But there'll be a lot of suckers in this game and YTL plays this game well. Starhill Gallery valuation is a classic example. So for now, I'll hold on to my Stareit. Dono't have much of it anyway. @Vincent – Yep I’m a little uncomfortable with AmFirst gearing myself. Also not too sure about the Summit USJ property. Starhill REIT is in a bit of limbo right now, the picture is not so clear until we know what assets go in and at what price. I quite like Alaqar as well (although I don’t own any units), you can check out the earlier interview we had with their CEO, I mentioned to them that it would be nice if gearing can come down a bit. BSD REIT at under RM1.30 should be decent buying for the medium term, likewise Tower REIT at under RM1.10 would be OK. All these can potentially get you 12% total return over the medium term at decent risk levels. If you have a bit more risk appetite, take a look at Property Developer PLENITUDE. I’ve bought some yesterday and today at RM2.73 to RM2.80. The company has a market cap of of around RM380 million and Net Cash of RM230million+. It’s one of the rare property developers with a consistent earnings and dividend track record.

@John – YTL Corporation certainly can do with a cash injection. I agree with you on the asset injection part, I don’t think it’ll come at a fair price to STAREIT investors. But there’ll be a lot of suckers in this game and YTL plays this game well. Starhill Gallery valuation is a classic example. So for now, I’ll hold on to my Stareit. Dono’t have much of it anyway.

]]> By: John http://www.horizon.my/2009/11/starhill-reit-sells-lot-10-and-starhill-gallery/comment-page-1/#comment-5101 John Wed, 24 Feb 2010 02:16:32 +0000 http://www.horizon.my/?p=1056#comment-5101 What worrys me is that YTL will try to inject their Pangkor Laut Resort into Starreit at an inflated price. The property is very tired and a loss maker but could be given a very high capital valuation (we all know the worth of some Malaysian valuations) because of the large amount of undeveloped land (which has a negative return).  In my view the property is a big white elephant. YTL may look to cash up and suck out Stareits money. John What worrys me is that YTL will try to inject their Pangkor Laut Resort into Starreit at an inflated price. The property is very tired and a loss maker but could be given a very high capital valuation (we all know the worth of some Malaysian valuations) because of the large amount of undeveloped land (which has a negative return).  In my view the property is a big white elephant. YTL may look to cash up and suck out Stareits money. John

]]> By: Vincent http://www.horizon.my/2009/11/starhill-reit-sells-lot-10-and-starhill-gallery/comment-page-1/#comment-5095 Vincent Tue, 23 Feb 2010 11:17:10 +0000 http://www.horizon.my/?p=1056#comment-5095 Hi Larry, I understood now. So it's still back to the post you talked about normalized PE. AmFirst seems like having big debts. In fact, I'm looking for leader in REITs. After compared all REITs using the info from your blog, it seems STAREIT and ALAQAR are the 2 shortlisted, in a more conservative evaluation. What do you think? Hi Larry,

I understood now. So it’s still back to the post you talked about normalized PE. AmFirst seems like having big debts.

In fact, I’m looking for leader in REITs. After compared all REITs using the info from your blog, it seems STAREIT and ALAQAR are the 2 shortlisted, in a more conservative evaluation. What do you think?

]]> By: larry http://www.horizon.my/2009/11/starhill-reit-sells-lot-10-and-starhill-gallery/comment-page-1/#comment-5094 larry Tue, 23 Feb 2010 08:41:37 +0000 http://www.horizon.my/?p=1056#comment-5094 Hi Vincent, AmFirst had a big property revaluation excercise last year. Out of it's RM179million in profit, RM142million was Fair Value Adjustments which means it is not cash profit. The important figure you need to use is the Normallized PE Ratio which works out to be around 12.5x. This excludes the FV adjustments. Also the prime office sector may feel some pressure in the near term and upside may be quite limited for now. Tower REIT would be a cheaper exposure to prime office sector if that's what you're looking for. Hi Vincent, AmFirst had a big property revaluation excercise last year. Out of it’s RM179million in profit, RM142million was Fair Value Adjustments which means it is not cash profit. The important figure you need to use is the Normallized PE Ratio which works out to be around 12.5x. This excludes the FV adjustments. Also the prime office sector may feel some pressure in the near term and upside may be quite limited for now. Tower REIT would be a cheaper exposure to prime office sector if that’s what you’re looking for.

]]> By: Vincent http://www.horizon.my/2009/11/starhill-reit-sells-lot-10-and-starhill-gallery/comment-page-1/#comment-5091 Vincent Tue, 23 Feb 2010 05:58:02 +0000 http://www.horizon.my/?p=1056#comment-5091 Hi Larry, Just want to ask for your opinion, as I'm newbie to REIT. It seems like AmFirst is making money every quarter, and it's operation seems okay. But why it retaining at the lowest PE of around 2.5, compare to it's history PE11 and other REITs of around PE12? Does it means this REIT is undervalue for now? Else, what are the possible problem with this REIT? Thanks very much. Hi Larry,

Just want to ask for your opinion, as I’m newbie to REIT. It seems like AmFirst is making money every quarter, and it’s operation seems okay. But why it retaining at the lowest PE of around 2.5, compare to it’s history PE11 and other REITs of around PE12? Does it means this REIT is undervalue for now? Else, what are the possible problem with this REIT?

Thanks very much.

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