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KLSE: KIPREIT       KIP REAL ESTATE INVESTMENT TRUST
Last Price Avg Target Price   Upside/Downside Price Call
0.875 0.95     +0.075 (8.57%)
* Average Target Price, Price Call and Upside/Downside are derived from Price Targets in the past 6 months.
** Price Targets are adjusted for Bonus Issue, Shares Split & Shares Consolidation (where applicable).
Date Open Price Target Price Upside/Downside Price Call Source News
06/12/2018 0.805 0.95 +0.145 (18.01%) TRADING BUY KENANGA Price Target News


Price Target Research Article/News (past 6 months)
06/12/2018  KENANGA KIP REIT - Great Yields On Stable Assets



  Patrick13 likes this.
 
RonanOng Ready to be goreng by Kenanga/Rakuten :)
02/10/2018 1:23 AM
LearningToInvest anybody looked at note 10 of their 2018 audited accounts? They have RM87mil in borrowings which will be repaid in 1 bullet payment 5 years from date of 1st drawdown. I cant find any disclosure on when it was drawndown. It is sitting there in their books for 2017 and 2018. So I can only assumethat they would need to pay it back between now and 2021. They have ~20mil in cash, makes about 40m FCF every year and i do not see any disclosure of how much cash is cordon of to pay for the RM87m. Anybody has any information on how they plan to pay back this RM87mil? Thanks.
10/10/2018 4:41 PM
LearningToInvest simply put sometime between now and 2021... they will have to:
1. do an equity fund raising
2. refinance
3. reduce distributions
option 1: dilution means reducing the yields assuming all else equals
option 2: refinancing to defer the bullet payment is probably their best choice.... if via a normal term loan... it means yields goes down. if via the same terms then it would probably be the same yield as now.
option 3: Right now there is about 3 years left to pay the 87m bullet payment, roughly about 29m a year. Their distribution in 2018 ~37m... so they will have to cut distributions per year to about 8m.

That means the 8%+ yield that we are seeing is not sustainable.... my 2 cents.
Feel free to comment.... i am here to learn.
11/10/2018 5:23 PM
shortinvestor77 BoD is trying their very best to generate increasing profit. Any deal that cannot give a recent yield will not be purchased. The existing business they have been improving and increasing its profit while reducing cost be installing solar panels onto the assets. Reits always carry suitable debts with a max gearing ratio of 0.5.
12/10/2018 8:34 AM
Gen2 @LearningToInvest, they have 300m cash ( published in sinchew : http://www.sinchew.com.my/node/1797937 )
12/10/2018 10:05 AM
LearningToInvest Gen2: thanks for the link.
12/10/2018 12:04 PM
Gen2 Weird thing is, their BS don’t have the 300m cash ??!!
12/10/2018 12:31 PM
kinuxian That's the model of most REIT player by leveraging where SC limit the gearing ratio below 50% as hard cap. Most of them will tap into gearing where confident their purchase is making higher return then loan interest. They'll issuing new commercial paper when time due.

I guess many reporter failed their math. :) Their current asset is about 30MM instead of 300MM in their final report.
12/10/2018 5:57 PM
Gen2 @kinuxian
The news even stating after the cash call existing 300m cash will be increased to 400m.
May be who attended their AGM can enlighten us further ?
12/10/2018 9:59 PM
LearningToInvest their cash call is only ~100m shares... assuming they can place out at 0.80... only get 80m cash. Their Aeon purchase... from circular looks to be 100% funded by debt... but assuming 80% financing at 5% interest rate for 20 years..maybe NPI additional RM4m a year. if they manage to place out the 100m shares (which they will have to) their yield will no longer be 8%... proforma ~5% only. If only going to get 5% yield IGB or PAV reit safer
15/10/2018 2:14 PM
shortinvestor77 They know what to do for the benefit of shareholders..
15/10/2018 9:57 PM
CFTrader (1) According to what i had read in the AR2018 , they DO NOT have 300m cash .

Cash and Bank Balance = 8.9M
Deposit with License Bank = 10.9M

Generally speaking it's 20M for cash, and 28M for short term asset.


(2) REITS usually will refinance their debt with the asset as backing. As long REITS can generate income more than
(i) the existing rate - eg. if average rate is 7.0% , and the latest acquisition give 7.5%, that is addictive effect AND (ii) higher rate compared to the cost of fund - which is the loan.

They will be off good with the dividend declaration.

(3) They cannot simply cut the dividend yield, it is MANDATORY for REITS to declare a minimum of 90% NPI to enjoy the taxation benefit. REITS are differerent compared to normal share.


Sincerely
CFTrader
16/10/2018 12:16 AM
CFTrader I lazy to recalculate, but base on last AR2018 , they still have 218.977 M loan amount to reach the ceiling level of 50% gearing ratio.

The acquisition of the "mall" is 208M, which they have maximize the loan amount already.

Sincerely
CFTrader
16/10/2018 12:19 AM
shortinvestor77 https://klse.i3investor.com/blogs/nomoneylahreitinvesting/178957.jsp
20/10/2018 3:31 PM
shortinvestor77 No more kacau from Great Estern and OCBC.
https://klse.i3investor.com/insider/substantialShareholderNoticeOfCeasing/5280/23-Oct-2018/11939_618477176.jsp
23/10/2018 2:15 PM
shortinvestor77 http://www.klsescreener.com/v2/news/view/455910
13/11/2018 8:41 AM
naruko halt again for this kinta acquisition, what the...
30/11/2018 2:47 PM
naruko 2billion asset, what a high target, but I like it
06/12/2018 8:49 AM
Kalaihselvan Krishnan Why big drop in price
31/12/2018 9:51 PM
kinuxian I guess GE & OCBC. Selling their remaining shares although ceasing as substantial shareholders back in Oct.
31/12/2018 10:05 PM
alam Rafik KIP already touch to 0.80 almost so why it slip...?
31/12/2018 10:12 PM
RickyCJC Many REIT drop, don't know why?
31/12/2018 10:45 PM
Kalaihselvan Krishnan Price down a lot
01/01/2019 1:20 AM
Yi Heng fair price how much?
01/01/2019 6:17 PM
RickyCJC What's going on? My other shares are up, only this share is falling
08/01/2019 1:08 PM
nkk53 Q at 0.78
09/01/2019 10:32 AM
Yapyapty Tp0. 70
13/01/2019 12:55 PM
Tan Yeang Cong Still consider good, need time to grow.
16/01/2019 9:13 AM
antonb RED ALERT - 2 main directors are selling, millions of shares after buying in Oct and Nov last year.. time for small holders to also sell??
28/01/2019 4:12 PM
mbge7clt Green Alert the 2 main guys are buying back... i guess all these actions are normal.
30/01/2019 9:52 PM
Kensington KIP REIT had since yesterday breached the 200 day exp moving average and is now moving on an upward trend. Keep it up, KIP!
26/02/2019 2:49 PM
Yapyapty KIPREIT will drop to 0.72 soon
04/03/2019 10:56 AM
Value Investor Coo1eo @Yapyapty....that's great!! but please be more clear on why 0.72 and not 0.68?
05/03/2019 5:17 PM
Yapyapty 因为现在是散户吃着上而已,买在0.800以上
06/03/2019 11:16 PM
Yapyapty 如果现在不会卖,就死得很难看
06/03/2019 11:17 PM
Lyo82 @Yapyapty: I would love to see that, and I think you are looking for that opportunities too..
10/03/2019 7:46 PM
Yapyapty 我手上6000张票每天卖点差不多卖完,谢谢散户与庄家
27/03/2019 5:56 PM
Lyo82 也谢谢Yapyapty
30/03/2019 11:30 AM
Lyo82 Thought of you got 60000 shares... quite a joker.
30/03/2019 11:42 AM
Yapyapty 祝大家好运
03/04/2019 8:07 AM
CFTrader With the acquisition of the Kinta Mall, i don't see any reason of dropping.
Please make KIPREIT 就死得很难看 (die in a very horrible way)
I'm waiting to collect KIPREIT and die with KIPREIT together if it is selling at 50c.

If you think KIPREIT will drop suddenly to 70c or 60c, then you must mistaken REITs as a normal company share or whatsover securities...


Sincerely
CFTrader


(previous excerpt)_____________________________________

malinfan is now salivating because of missing the boat as he/she/it sold at a lower price and now the price had gained to 86.5c.

He/She/It is still waiting for 55c KIPREIT which in my humble opinion , with a probability of 99% he wont get the stock at that price.

Sincerely
CFTrader
05/04/2019 5:32 PM
Yapyapty Sohai CF Trader
05/04/2019 9:26 PM
Lyo82 Yes there is an idiot here.
06/04/2019 10:12 AM
Yapyapty Super sohai
06/04/2019 6:51 PM
newbie trader can in now?
08/04/2019 2:47 PM
Value Investor Coo1eo i wonder why traders are even here....."can in now?" ...if u want to in and out, go and find another hole....knn
09/04/2019 1:24 PM
Yapyapty 包跌guarantee drop
11/04/2019 11:04 AM
Yapyapty 我排买着0.805
14/04/2019 5:09 PM
enigmatic I now understand why my friend said buying REITs is like buying real estate property. Location, location, location.
19/04/2019 11:46 AM
CFTrader Oh no, the YoY profit dropped 14%. By this trend, after 7 quarter, KIPREIT profit will be zero ! SELL now. TP 0.10
Familiar with this kind of quote ? Teehee...

Note for fellow investors.
Lower total comprehensive income mainly due to higher borrowing cost incurred on the back to date of higher bank borrowing to finance solar PV system as well as the Kinta acquisition deposit. On top of that, the higher management fee charged from 0.30% of TAV in corresponding quarter to 0.60% of TAV in current quarter.

You should question why management fees doubled at shareholder expenses.

Sincerely
CFTrader
20/04/2019 11:16 PM


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