Sunway's buying land in Singapore for residential development. I expect the GDV for this to be above S$1b...

http://www.bursamalaysia.com/market/listed-companies/company-announcements/5199637

The Board of Directors of Sunway is pleased to announce that Hoi Hup Realty Pte Ltd (“Hoi Hup”) and Sunway Developments Pte Ltd (“SDPL”) has on 5 September 2016, won a tender to acquire from the Housing and Development Board of Singapore a 99-year leasehold land at Anchorvale Lane (Lot 2924T MK21), Sengkang (“the Land”). The tender price submitted jointly by the parties was S$240.95 million (equivalent to approximately RM724.14 million).

The said Land will be acquired by a proposed new joint venture company at the tender price, in which Hoi Hup, SDPL, Oriental Worldwide Investments Inc. (“Oriental”) and Azuki Investments Pte Ltd (“Azuki”) will have equity interest in the proportion of 62:30:5:3.

The proposed new joint venture company to be set up will be known as Hoi Hup Sunway Sengkang Pte Ltd (“Hoi Hup Sunway Sengkang”) which will build and sell Executive Condominiums (“the Proposed Project”) on the said Land.

SDPL is a wholly-owned subsidiary of Sunway Holdings Sdn Bhd, which is in turn a wholly-owned subsidiary of Sunway.

SDPL cost of investment in the joint venture is S$72.28 million or approximately RM218 million.

The completion period of the Proposed Project shall be 48 months or earlier, commencing from 5 September 2016. It is expected to contribute positively to the earnings of Sunway Group from the financial year ending 31 December 2018 onwards.

http://www.theedgemarkets.com/my/article/ram-revises-media-prima%E2%80%99s-long-term-ratings-outlook-negative

http://www.bursamalaysia.com/market/listed-companies/company-announcements/5195333

Single-tier special dividend of 11.5 sen per ordinary share
EX-date 15 Sep 2016
Entitlement date 20 Sep 2016
Payment date 23 Sep 2016

===
The long wait is over!

http://www.theedgemarkets.com/my/article/titijaya-land-raise-rm10148m-rights-issue

http://www.bursamalaysia.com/market/listed-companies/company-announcements/5182605

Interim income distribution of 2.60 sen per unit for the financial year ended 31 December 2016 (of which 2.37 sen is taxable and 0.23 sen per unit is non-taxable in the hands of unit holders) in respect of the period from 01 January 2016 to 30 June 2016.

===
http://www.bursamalaysia.com/market/listed-companies/company-announcements/5182561

There was an increase of 10% in net income before tax recorded in the current quarter as compared with the immediate preceding quarter. The increase was due to increase in rental and promotional income of KOMTAR JBCC.

===
1Q: 1.25 sen EPS
2Q: 1.38 sen EPS
If they maintain 1.38 sen EPS for the next 2 Quarters, that'll be 5.39 sen EPS for the year.

This share has lagged significantly behind the other retail REITs (low trading volume, capital appreciation of only 3 sen above IPO in Sept 2015). Perhaps, a future injection of properties will boost the earning prospects of this REIT.

It is also worthwhile to consider that quite a few Johor malls are expected to be completed in the next 2-3 years: Paradigm JB, MidValley SouthKey, Aeon, etc. Competition for tenants will definitely affect future rental reversions at Komtar JBCC.

http://www.theedgemarkets.com/my/article/suncon-gets-rm268m-international-school-construction-contract

The next quarterly results should be out soon, I think. I made a prediction in April that we'll see AMFIRST back at RM0.80. So far, so good. Congrats to those with the patience to weather the storms ahead.

Final Income Distribution of 2.12 sen per unit (of which 1.31 sen per unit is taxable and 0.81 sen per unit is non-taxable/tax exempt) for the fourth quarter ended 30 June 2016.

http://www.bursamalaysia.com/market/listed-companies/company-announcements/5174037

Most of the MREITs are being played up, with the lower BLR and falling bond yields around the world. Combine that with the proposed SC changes to MREITs (allowing them to allocate some % to property development), and you have some interesting times ahead!

I'm sure there's a simple rationale for this. CIMB recently announced it would distribute PT CIMB Niaga shares as a dividend, in part to comply with Indonesia's foreign banking regulations. The price went up in anticipation of this news.

http://www.theedgeproperty.com.my/my/content/820534/summit-hotel-subang-usj-get-rm20-mil-rm30-mil-renovation

Sudden fall today... but it's only ex-date tomorrow! Some big player cash out early?

4.2 sen dividend announced!

http://www.bursamalaysia.com/market/listed-companies/company-announcements/5151541

Sungei Wang Plaza still underperforming because of MRT works, but occupancy rate has improved a bit since the last quarter.

The new car model looks pretty good so far, in terms of fuel mileage. I'm guessing this one's going to take even more market share from Proton.
http://www.therakyatpost.com/business/2016/07/14/perodua-opens-booking-for-1-3l-beeza-sedan/

Take note of the relevant dates: Last date for trading is 1 August.

http://www.bursamalaysia.com/market/listed-companies/company-announcements/5148325

http://www.theedgemarkets.com/my/article/sc-grants-waiver-sunway-reit-penang-land-acquisition

That may also have played a part in the uptick in trading volume the last few days.

BNM dropped interest rates today. A Boost to property stocks & REITs, and any other stocks with high gearing.

Some heavy buying into SUNREIT today... blocks of 500000 shares at a time.

http://www.theedgeproperty.com.my/my/content/742573/sunway-reit-buys-land-parent-sunway-carnival-mall-extension

http://www.theedgeproperty.com.my/my/content/731507/amanahraya-reit-buys-property-cyberjaya-rm40m

Proposed rights issue to fund the purchase of 1Segamat in Johor.

2.4 Source of funding:
For illustrative purposes, assuming the Intended Gross Proceeds raised is RM74.8 million, the Purchase Consideration will be fully satisfied via the net proceeds from the Proposed Rights Issue of RM71.2 million and bank borrowings of RM32.8 million.

Links:
http://www.thestar.com.my/business/business-news/2016/06/10/hektar-reit-buys-1segamat-mall-from-ecofirst-for-rm104mil/
http://www.bursamalaysia.com/market/listed-companies/company-announcements/5120849
http://www.bursamalaysia.com/market/listed-companies/company-announcements/5121509

http://www.bursamalaysia.com/market/listed-companies/company-announcements/5117161

I'm guessing these are the details of the Government Soft Loan to Proton.
4% p.a. Preference Shares issued to Gov.Co., with 3 maturity dates up to 15 years. And with a 5 year grace period. In other words, if the cashflow is bad, they don't have to pay anything for up to 5 years! Also, there is a clause that allows conversion of preference shares to ordinary shares.... effectively means, Govt can take over >79% of Proton, if things don't go as planned.

Did someone say Bail-out?

Proposed dividend of 3.5 sen, bringing it to a total of 6.75 sen. That's about 5.4% DY at the current share price.

===
http://www.bursamalaysia.com/market/listed-companies/company-announcements/5097433

The Board of Directors of ELK-Desa Resources Berhad is pleased to announce that a single tier final dividend of 3.50 sen per ordinary share in respect of the financial year ended 31 March 2016 will be recommended to the shareholders for approval at the forthcoming 27th Annual General Meeting of ELK-Desa Resources Berhad.

Proposed dividend of 3.5 sen, bringing it to a total of 6.75 sen. That's about 5.4% DY at the current share price.

===
http://www.bursamalaysia.com/market/listed-companies/company-announcements/5097433

The Board of Directors of ELK-Desa Resources Berhad is pleased to announce that a single tier final dividend of 3.50 sen per ordinary share in respect of the financial year ended 31 March 2016 will be recommended to the shareholders for approval at the forthcoming 27th Annual General Meeting of ELK-Desa Resources Berhad.

Proposed dividend of 3.5 sen, bringing it to a total of 6.75 sen. That's about 5.4% DY at the current share price.

===
http://www.bursamalaysia.com/market/listed-companies/company-announcements/5097433

The Board of Directors of ELK-Desa Resources Berhad is pleased to announce that a single tier final dividend of 3.50 sen per ordinary share in respect of the financial year ended 31 March 2016 will be recommended to the shareholders for approval at the forthcoming 27th Annual General Meeting of ELK-Desa Resources Berhad.

The entitlement date and date of payment in respect of the aforesaid final dividend will be determined and announced in due course.

This announcement is dated 20 May 2016.

Some encouraging news...

http://www.theedgeproperty.com.my/content/sunway-velocity-mall-80-leased

PETALING JAYA (May 26): Sunway Velocity Mall has leased out 80% of its net lettable area of over a million square feet ahead of its opening scheduled for October, said Sunway Shopping Malls and Theme Parks CEO HC Chan.

He expects the mall’s occupancy to hit 90% when it opens on Oct 28, and for the mall to achieve full occupancy next year.
...

The latest quarterly results don't look too exciting. EPS at 1.25 sen for the last quarter. If this is maintained, we're looking at an annualized EPS of only 5 sen.

Quarterly Results are expected by 27 May 2016.
You can blame the overall sentiment for property sector. But I believe this stock is diversified enough to weather the storms ahead. It's an opportunity to buy for the long term.

MRT is good for any location, once it is built! But remember, expected completion date of MRT 2 is around 2021 - 2022. I'm not sure of the exact location of the proposed MRT station in Cyberjaya, but I assume it will be closer to some of the Universities there.

http://www.theedgemarkets.com/my/article/petchems-1q-net-profit-falls-21-higher-tax-expense

KUALA LUMPUR (May 9): Higher tax expense pulled down Petronas Chemicals Group Bhd's (PetChem) net profit by 2.1% to RM592 million or 7 sen per share for the first quarter ended March 31, 2016 (1QFY16) from RM605 million or 8 sen per share a year ago.

It's better to use the gearing ratio if we want to estimate the interest costs for Prima 9.
At 46.1% of RM72.89m, and assuming 4.71% interest rate, that works out to around RM1.58m per year. An empty building will still have overheads for maintenance. Looking at past annual reports, the difference between the gross revenue & net property income for Prima 9 varies between RM1.1 - 1.35m when occupied. Therefore, even if we take a worst case scenario of RM1.35m, you're looking at about RM2.93m in annual expenses to maintain the property & loan.

Based on RM4.5 psf rental, they will need to rent out at least 50% to hit breakeven on Prima 9.

===

As to the question about shifting tenants around, AGLC was 99% tenanted by Ambank (related co.), whereas Prima 10 is fully occupied, with a single tenant (RBC). Prima 10 has twice the net lettable area(NLA) vs AGLC. Moving office location is no joke. Takes a lot of planning and potential downtime.

With the current oversupply of office space, selling Prima 9 would probably be the best bet. It's just a question of price.

While I'm glad to see some positive results from AMFIRST, I would like to approach the Q4 Results with a bit of caution & clarification.

The bulk of the 'profit' is from property revaluation, specifically Mydin Hypermall (~RM 20.8m surplus).
The dividend of 3.07 sen includes the proceeds from the sale of AGLC (~RM8.4m or about 1.22 sen per share).
When you strip out these extras, the recurring income is lower than previous year.

Cons:
1. Prima 9 remains vacant. Property now valued at RM74.5m vs RM77m in previous year.
2. Gearing is at 46.1%, which means any future acquisitions will likely come from rights issue / private placements.
3. Average interest rates have gone up slightly Y-o-Y from 4.6 to 4.71%.
4. Summit refurbishment still ongoing for at least another 4-5 months.

Pros:
1. At current price (RM 0.76), and NAV of 1.28, you're buying in at a steep 40% discount.
2. They're shifting tenants from AGLC to Menara Ambank, which should boost the occupancy rates.
3. Quite a number of their office & retail tenancies are up for renewal this year. (This might be a double-edged sword, given the oversupply of office space. But I'm optimistic with regards to the retail tenancies)

Have a nice weekend everyone.

Extracted From the last Quarterly Results:

B3.
Excluding the net gain on disposal of AmBank Group Leadership Centre of RM12.2 million, the realised income from operation for the current quarter was RM6.1 million, a marginal decrease of 1.7% as compared to the immediate preceding quarter.
The unrealised income of RM29.1 million for the current quarter was mainly derived from the revaluation surplus arising from the fair value adjustment of the investment properties.

B10. PROSPECTS
The performance of the Trust had been affected by lower occupancy in some of the office buildings, especially in Cyberjaya, coupled with lower rental revenue from The Summit Subang USJ caused by the temporary business disruption due to the on-going refurbishment works.
The refurbishment of The Summit Retail Podium has been delayed and is expected to complete by 2nd Quarter of the financial year ending 31 March 2017. In anticipation of the newly refurbished mall, the Manager had received acceptance from an international retailer for a substantial space of 86,000 sf in The Summit Retail Podium, which will act as the catalyst for future positive occupancy and rental reversion with improve tenancy mix.
With the completion of the disposal of AmBank Group Leadership Centre, the current vacancy in Menara AmBank will be addressed by the impending relocation of the tenants from AmBank Group Leadership Centre.
The Manager will continue to initiate more intense leasing effort and proactive market measures to improve the occupancy of the properties under the Trust?s portfolio.
Barring any unforeseen circumstances, the Manager expects the Trust to deliver a moderate performance for the financial year ending 31 March 2017.

===

EX-date 04 May 2016
Entitlement date 06 May 2016
Final income distribution of 3.07 sen per unit (of which 1.01 sen per unit is subject to withholding tax and 2.06 sen per unit is non-taxable/tax exempt) in respect of the six-month financial period from 1 October 2015 to 31 March 2016.

For those of you who got a cheque in the mail today from SUNREIT, this is the refund due to the company winning the Industrial Building Allowance dispute for the period between Jan 2013 - June 2015.

Based on the table provided, entitled shareholders who had collected dividends during this period would get a refund on the tax overpaid. This will vary from individual to individual as some shareholders would have bought or sold some shares during this period. Others might be non-resident or as a corporation, which would further complicate things.

For ease of calculation, let's assume you (as a tax-resident individual) have 10000 shares kept from Jan 2013 until Sept 2015. From the table, your refund will add up to RM0.00163 per share, or RM16.30. Just enough to treat yourself to a Starbucks coffee, I guess. :D

Link:
http://www.bursamalaysia.com/market/listed-companies/company-announcements/5057741
The Board of Directors of Sunway REIT Management Sdn Bhd, the manager for Sunway REIT (“the Manager”), is pleased to announce that the Manager has on 12 April 2016 received a letter from Inland Revenue Board of Malaysia confirming that a sum amounting to RM2.17 million will be refunded to the unitholders of the 11 Affected Distributions. The sum of RM2.17 million will be refunded to the unitholders based on their total unitholdings on the entitlement date for the 11 Affected Distributions and the corresponding amount of refund per unit is as tabulated in the table as attached below.

http://www.theedgemarkets.com/my/article/microlink-growing-its-earnings-pie

http://www.theedgeproperty.com.my/my/content/hektar-reit-allocates-rm20m-upgrade-landmark-central

UEM Sunrise proposes RM2.5b sukuk debt notes to raise funds... looks like another round of fund raising.

http://www.theedgemarkets.com/my/article/uem-sunrise-proposes-rm25b-sukuk-debt-notes-raise-funds

http://www.theedgemarkets.com/my/article/integrated-logistics-dispose-warehousing-units-hong-kong-hk1373m

KUALA LUMPUR (April 19): Integrated Logistics Bhd (ILB) is selling two of its Hong Kong-based warehousing outfits for HK$137.3 million (RM69.1 million), in line with its aim to divest most of its remaining business operations in China.

Looks like all the property developers are coming out with their own sweeteners this year to boost sales.

http://www.theedgeproperty.com.my/my/content/pay-nothing-12-months-selected-ijm-land-homes

LATO' SELI > What is your time frame for TP? 1 year, 3 years, 5 years?

Realistically, RM 0.80 is achievable this year, although the optimist in me says RM0.85

I don't think we'll see RM 1.15 within the next 2 years, unless they manage to sell off some of their lower yielding commercial office assets.

On a related note, seems they may be looking for a buyer for Prima 9 (Cyberjaya)
http://www.iproperty.com.my/propertylisting/3626638/cyberjaya-office-forsale
Note: Prima 9 is currently vacant, valued at RM77m. Asking rental rate: RM4.5 psf.

http://www.theedgeproperty.com.my/my/content/sunway-introduces-sunway-property-certainty-campaign

Anyone have any thoughts with regards to the various campaigns cropping up to boost property sales in Malaysia? I've noticed it being done by a few others besides Sunway.

Will this inject some level of confidence into the property market, or just the opposite?

http://klse.i3investor.com/servlets/staticfile/277866.jsp

(Page 8) MOVING FORWARD INTO 2016
We expect 2016 to be Hektar REIT’s toughest year over its 10-year history. To reiterate, the oil crisis, the currency crisis, mass layoffs and hike in interest rates from the implementation of Bank Negara’s Basel III are not doing Hektar REIT and retailers any favours. The retail outlook in 2016 is very lacklustre and retailers continue to be skittish. A significant number of our loyal retailers are seeking our support to reduce their rent until the tide is turned. These are not fly-by-night retailers. They have been with us for many years and have never objected to rent increases before. I feel it is now time for us to demonstrate our loyalty to them during this extremely trying period. Bear in mind though, that by acceding to these rent reduction, Hektar REIT may experience dips in revenue in 2016.
However, every cloud has a silver lining. We now expect more opportunities for acquisition as we are now in a better position to negotiate with vendors, who we feel are more willing to accept our high-yield requirement.

===

In the recent 2015 Annual Report, The Chairman/CEO acknowledges the tough economic climate, and cautions investors on possible dips in revenue in 2016. However, he also sees possible opportunities for acquisitions. It is possible that HEKTAR might look to issue new shares in the near future to fund future property acquisitions, as well as reduce gearing levels (currently at 44%).

There are also quite a few property tenancies expiring this year (37% by rental income). So, let's assume a worst case scenario: a negative rental reversion of about 10%, meaning a drop of about 3.7% in revenue, from RM125.5m to RM120.8m (less RM4.7m).
2015 Property expenses: RM49m
2015 Other expenses (manager fees, loan interest, etc) RM32.5m
Realised income in 2015 was about RM44.6m, so a drop of RM4.7m means est. realised income of RM39.9m, Divided by 400m shares. Assuming they pay out 95% as dividend, that works out to 9.5 sen per share, which is still a 6.3% DY at the current share price.

Overall, still a decent defensive stock for the medium to long-term. I will probably look to accumulate this stock if it drops below RM1.40

http://klse.i3investor.com/servlets/pfs/56674pub.jsp

http://www.bursamalaysia.com/market/listed-companies/company-announcements/5021753

EX-date 17 Mar 2016
Entitlement date 21 Mar 2016
Payment date 30 Mar 2016

Under the SCR, the ordinary shareholders of Hunza, other than Khor Teng Tong Holdings Sdn Bhd (KTTH) and the persons acting in concert with KTTH in accordance with Section 216 of the Capital Markets and Services Act 2007 (Entitled Shareholders), whose names appear on the Record of Depositors of Hunza on the Entitlement Date shall be entitled to receive a cash amount of RM2.90 for each existing ordinary shares of RM1.00 each in Hunza (Hunza Share) held on the Entitlement Date.

The settlement of the capital repayment will be effected via electronic remittance to the bank accounts registered with Bursa Malaysia Depository Sdn Bhd (Bursa Depository) by the Entitled Shareholders for purposes of receiving their respective electronic cash dividend payment (eDividend Accounts) within 10 days from the Entitlement Date. For the Entitled Shareholders who do not maintain eDividend Accounts, the settlement of the capital repayment will be effected via remittance in the form of cheques, bankers drafts and/or cashiers orders which will be despatched by ordinary mail to the Entitled Shareholders (or their designated agents, as they may direct) at the Entitled Shareholders registered address last maintained with Bursa Depository at their own risk within 10 days from the Entitlement Date.

The trading of Hunza Shares on the Main Market of Bursa Malaysia Securities Berhad (Bursa Securities) will be suspended with effect from 9:00 a.m. on Tuesday, 15 March 2016, being three (3) clear market days prior to the Entitlement Date. Accordingly, the last day for trading of Hunza Shares on the Main Market of Bursa Securities prior to the suspension will be at 5:00 p.m. on Monday, 14 March 2016.

The Hunza Shares will no longer be traded on the Main Market of Bursa Securities following its suspension on Tuesday, 15 March 2016. For the avoidance of doubt, the trading of Hunza Shares will continue to be suspended until the delisting of Hunza from the Official List of Bursa Securities following the completion of the SCR.

The notice to shareholders in relation to the suspension of trading of Hunza Shares and the Entitlement Date for the SCR will be despatched to Hunza's shareholders on 7 March 2016.

Any enquiries concerning this notice of book closure date should be addressed to the share registrar of Hunza at the abovementioned contact details.

This announcement is dated 4 March 2016.

The following information is taken from ALSREIT 2015 Annual Report (page 47/48):
http://klse.i3investor.com/servlets/staticfile/278371.jsp

Net property income was RM15.7 million against the Estimate Period 2015 of RM19.9 million,
difference by 21.3% or RM4.2 million.

The lesser gross revenue and net property income as compared to Estimate Period 2015 was
primarily due to the fact that the Estimate Period 2015 was prepared on the assumption that the
completion of Phase 2 Acquisition will be on 1 September 2015, but the actual completion of Phase
2 Acquisition was on 29 September 2015 and 30 September 2015 instead.

As such, the variance on the actual performance of fund as well as the properties against the
Estimate Period 2015 is mainly due to the timing differences as FP2015 incorporates 3 months
financial results of Phase 2 Acquisition whilst the Estimate Period 2015 had assumed 4 months
financial results.

In addition, the late opening of outlets by certain tenants for the period under review, also
contributed to the slightly lesser revenue for KOMTAR JBCC as against the Estimate Period 2015.
The slight delay in the opening of the outlets by the tenants reflects the cautiously optimistic
approach of the retailers in view of the challenging economy ahead.

Save for the timing difference due to Phase 2 Acquisition, income for the 22 KFC and/or Pizza
Hut Outlets as well as the 5 industrial properties are in line with the financial forecast under the
Estimate Period 2015.

===

Note: Phase 2 Acquisition refers to Komtar JBCC, @Mart Kempas, Menara Komtar, KFCH College.

If we factor in the missing 1 month's NPI for these properties, that's an additional RM2.6m, bringing the total NPI to RM18.3m, still missing the estimated mark by about 8%.
With this in mind, I would project a full year DY to be about 5.7% (5.13% nett), based on the IPO price of RM1.00.


Other important data points:
There are very few tenancy leases expiring in 2016.
Therefore, Komtar JBCC looks to be the main determining factor as to how well this REIT does in 2016. Occupancy is currently at 89%, so there's some room for growth.

Islamic financing: (Page 141)
For the financial period 30 March 2015 (date of establishment) to 31 December 2015, the average effective profit rate for the CMTF-i is 5.11%.

I would estimate that this is about 0.5% more than conventional bank borrowings. But as an Islamic REIT, its choices are limited when it comes to borrowings. It should be noted that a full year borrowing costs work out to about RM18m for ALSREIT, or about RM1.5m/month.

apalalu > Other stocks deduct 25% corporate tax (2015), before dividend is distributed.

REITs are structured differently, to be more tax efficient, as long as they distribute at least 90% of net income/profit to shareholders, with 10% as a withholding tax.

confuse> You have to differentiate between growth stocks and REITs which are effectively dividend stocks. Therefore comparing Karex to Amfirst is like comparing apples & oranges.
Also remember, Karex is currently enjoying the strong USD export boom.

800fold? Not quite. The figures are somewhat misleading, since the previous quarterly report represents less than 1 month's revenue; the IPO was in Sept 2015.

If you look closer at the latest quarterly result, RM7.7m is a revaluation gain in property value. That's about 1.3 sen per share. 2.5 sen EPS reported this quarter, RM6.7m realised; therefore it works out as 1.2 sen distributable income (see earlier dividend declared).

In order for ALSREIT to meet their IPO forecast of 6.4% DY for 2016, they will need to generate net income of about RM9.3m per quarter! RM6.7m is a serious shortfall.

3.25 sen interim dividend declared. Seems like they're switching to half-yearly dividend, instead of annually. Assuming dividend split evenly, that's 6.5 sen for the year; that's about 5% DY, on par with past performance.

Parkson>
Take a simple analogy:
You buy a house for RM1 million, and rent it out at RM60k / year.
You do a revaluation of your property the next year, and find that it is only worth RM940k on the open market. But, you're still able to rent it out at RM60k / year.

Do you sell? Is it a loss-making asset? Of course not. On paper, you might have lost money... but it's generating positive rental income every year.