Based on your calculation, KIP's earnings will be impacted around 1% Other REITs will significant floating rate will be impacted more I guess. But do note that this there are more rate hikes in the pipeline. And there is not much scope for rental revision should we experience a recession.
If not for Kinta City, this REIT's revenue and earnings would have been impacted FY20 & FY21 - that is a fact. Moving forward, with full reopening and optimism surrounding the promise of new shareholder/investor as well as mgmt guidance to diversify this REIT i guess the market is finally waking up and fairly appraising the valuation...to be closer to NAV
Just for dividends, yes. However, be mindful that if there is a correction, you will lose much more than all the dividends you earned. and that is a fact...you can track the price in 2008 and 2020...how sharply it fell.
There is a reason why PB's PE is higher than MB. End of the day, MB is a GLC and will take on deals and make top level appointments that are not at the shareholders interest. If you compare the ROE and NPL of MB vs PB you will know why PB commands the premium valuation. Anyways, if PE goes up, DY will come down...MB's has to max out on dividend because of PNB/ASB and this means very little is left to reinvest in the business and grow future earnings. DRP also dilutes shareholder value. So if you are pure income investor, then this is a good place, but do not expect MB to give you capital gains. Contrary, when there is a crisis or correction, MB share always shows a sharp pull back to around RM7..or lower. So if you can accept that, then this is again a good place.
Funny, you say your are "Long term Investor" and yet refer to a company / business as a "counter" At RM3-3.1 it is fairly valued. Of course if you like to play the "goreng" counters go elsewhere. this is not your place @ Zacky Boy
@Treetop - I challenged your statement " reducing revenue and profits" as i assumed you are an investor who will have AT LEAST a 1-2 year annualized outlook.
But I guess you are one of those day/week trader that just looking at coming 1Q results, going by what analyst reports (which is nothing but garbage) then i guess you are not an investor in my eyes. I wont waste more time to respond to you. Good luck to you
this is not the time to be a "pessimist" rather this is a great opportunity to accumulate. Bursa PE expansion is for sure in the coming years....so this level of valuation is temporary. sentiment driven. fundamentals are in tact and Bursa is an RM10 share.
@ooihk899 - i did attend past 6yrs AGM and yes, i read the AR. fair price is RM2.7 if they do not get the Pioneer Status (because of unstable gomen and changes in policy) the profit margins will disappear in thin air. So then the rerated price is around RM1.7 thereabout. I am sure u know that there is no growth catalyst here. Did you read and understand the AR or not? knn