Journey to Wealth
Will REITs Continue To Rally ???
REIT as a whole did well in 2012 amid the external and domestic uncertainties. The sector had outperformed the FBM KLCI.
The undercurrent of caution has persisted coming into early 2013. Although outlook for the global economy has brightened, uncertainties stemming from the much delayed GE are now (Jan 2013) the overriding concern, at least the near term.
Until we pass this milestone, investors may well continue to take a defensive approach. This in turn would bode well for REITs. However we may not see a repeat performance in terms of gains in 2013 - given the sharp yield compression in 2012.
The three largest retail REITs - Sunway REIT, Pavilion REIT and CMMT - chalked up returns in excess of 30% including yield from income distributions.
AS a result, these trusts are now (11 Jan 2013) trading at relatively lofty 1.4 to 1.5 times their book values while average net yields have fallen to 4.1% to 4.6%. There is thus, little room for further compression - with yield spread against risk free investments such as one year fixed deposits having narrowed to just about 1.35%.
Fresh acquisition may still drive investor interest but as they are, gains may be limited to rental income growth estimated to be single digit.
M-REITs ...
Average Yield = 6.427%
| REIT | Period | DPU (sen) | Price (RM) | Yield | NAV (RM) | Assets Type |
| AmFirst | 2H - Mar12 | 4.83 | 1.050 | 9.200% | 1.4400 | Office |
| UOA | 1H - Jun12 | 5.53 | 1.380 | 8.014% | 1.4303 | Office |
| AmanahRaya | Q2 - Jun12 | 1.80 | 0.920 | 7.826% | 1.0493 | Retail |
| Tower | 1H - Jun12 | 5.48 | 1.480 | 7.554% | 1.6651 | Office |
| Hektar | FY11 - Dec | 10.50 | 1.480 | 7.095% | 1.4900 | Retail |
| Al-Hadharah | 1H - Jun12 | 4.50 | 1.900 | 6.579% | 1.7956 | Diversified |
| Atrium | Q3 -Sep12 | 2.20 | 1.270 | 6.929% | 1.1278 | Industrial |
| Quill Capita | 1H - Jun12 | 4.10 | 1.240 | 6.613% | 1.2965 | Office |
| Al-AQAR Healthcare | 1H - Jun12 | 3.26 | 1.380 | 6.109% | 1.1000 | Plantation |
| Starhill | 2H - Jun12 | 3.62 | 1.120 | 6.473% | 1.1460 | Diversified |
| Axis | Q2 -Sep12 | 4.30 | 3.130 | 5.495% | 2.1154 | Office |
| Sunway | Q1 - Sep12 | 2.03 | 1.560 | 5.205% | 1.0968 | Diversified |
| IGB REIT | FY12 - IPO | 6.38 | 1.360 | 4.691% | 0.9960 | Malls |
| CMMT | 1H - Jun12 | 4.20 | 1.820 | 4.615% | 1.1481 | Malls |
| Pavilion | FY12 - IPO | 5.73 | 1.430 | 4.007% | 0.9500 | Malls |
More articles on Journey to Wealth
Ekovest: No plan to launch another offer for Iskandar Waterfront City
Created by kiasutrader | Mar 29, 2018
Kenanga Research - On our Portfolio - Parliament dissolution around the corner?
Created by kiasutrader | Mar 25, 2013
Plantation Sector - Proposed accounting standard scrapped OVERWEIGHT
Created by kiasutrader | Mar 25, 2013
Pavilion Reit - Limited upside, earnings upside have been priced in HOLD
Created by kiasutrader | Mar 25, 2013
Discussions
Be the first to like this. Showing 0 of 0 comments
Post a Comment
Featured Posts
Introducing MY's First IPO Fund for Sophisticated Investors!
New Update. Discover investment communities that resonate with your ideas
M & A Value Partners IPO Equity Fund has been launched - Targeted 13% Return p.a
Latest Videos
.png)
Apps
Top Articles
1
Mercury Securities Research
2
南洋 - 凭单专栏/温世麟
4
6
7
Stock Pick Contest Year 2024
8
#
Stock
Score
Daily Stocks
Stock Name
Last
Change
Volume
Stock Name
Last
Change
Volume
Stock Name
Last
Change
Volume
MQ Trading Signals
Stock
Time
Signal
Duration
Stock
Time
Signal
Duration
Featured Advertisers / Partners
Ride The Bull Short The Bear
CS Tan
4.9 / 5.0
This book is the result of the author's many years of experience and observation throughout his 26 years in the stockbroking industry. It was written for general public to learn to invest based on facts and not on fantasies or hearsay....
