http://www.theedgemarkets.com/my/article/zelan-unit-bags-rm30737m-job-gombak-transport-terminal-works-0

KUALA LUMPUR: Zelan Bhd’s wholly-owned subsidiary Zelan Construction Sdn Bhd (ZCSB) has bagged a RM307.37 million contract from Zelan’s 95%-owned unit Terminal Bersepadu Gombak Sdn Bhd to be the main contractor for the development of the Gombak Integrated Transport Terminal (GITT) in Selangor.

Parkson> If you actually took the time to scan through the Q4 Results, it shows Fair value adjustment of investment properties of (-RM39,933,986). As you know, the market conditions have put a damper on property values, and that is reflected in the revised NAV of the share, and the Q4 Results. It is a paper loss, not a cashflow loss.

Cashflow is stable: this is probably one of the few REITs that has consistently delivered stable dividends of above 10sen Y-o-Y without fail since 2007. (Currently at 10.5 sen for the FY2015.)

Possible concerns:
1. Borrowings have increased due to a property acquisition (Mahkota Parade individual lot).
2. Some Material Litigation regarding Mahkota Parade.
3. Slowing consumer demand in 2016.

m00077 >
The Mydin purchase was secured by incurring additional loan of RM250million. Let's assume the Interest Rate ~ 4.6%. The expected net rental yield is 6.5%.
Source: http://klse.i3investor.com/servlets/staticfile/272353.jsp

6.5% of 250m = RM16.25m
4.6% = RM11.5m interest

Going by the above figures, this indicates a net profit (revenue minus loan interest) of RM4.75m/ yr from the Mydin rental. Ideally, this will add just under 0.7 sen to the total earnings per share.

===

3Q Results are out:
http://www.bursamalaysia.com/market/listed-companies/company-announcements/4998957

Lower Profit as expected, since additional borrowings incurred for AEIs and deposit for Mydin acquisition, and a drop in occupancy rates for office space. Prima 9 remains empty.

[The refurbishment of The Summit Retail Podium is expected to complete by 1st Quarter of the financial year ending 31 March 2017 and the Manager would expect the revenue from the Summit USJ to improve upon its completion of the refurbishment.]

4Q Results should be better than 3Q, due to the rental contribution of Mydin.

===

In my earlier comment on 18/12/2015, I had estimated about 5 sen dividend for the next fiscal year, and 6.2 sen, if we include the distribution from the sale of AmBank Group Leadership Centre, based on 686m issued shares.

I still think this is highly achievable, even with the drop in office occupancy rates.

An exciting afternoon play! Trading ex-dividend, and yet the share goes up >5%! Not much news, except it seems EPF & ASB have been slowly increasing their stake in SUNREIT.

Some idea of the size of the property:
[The biggest MYDIN Mall yet, MYDIN Bukit Mertajam is open and ready for business on 20 November 2015. It occupies 320,771 square feet for the hypermarket space area, 814,672 for 81 shop lots and 25,066 square feet for food court area. ]

It's a simple sale & leaseback agreement, meaning Mydin got paid cash for the property, minus construction/loan expenses. According to TheMalaysianInsider, their cost was RM230m, and sold to Amfirst at RM250m... 20m cash profit. RM2m per mth is peanuts for Mydin.

It's a hypermall, meaning it's Mydin hypermarket as the anchor tenant, and mall space for other stores/tenants, to be managed by Mydin. That means, that some of that RM2m per mth is coming from their tenants, not just from hypermarket sales.

If you look back at the proposed acquisition documents, the following details:
[2.4 Post Completion
Pursuant to the terms of the SPA, the Vendor has to procure the Lessee to accept a 30 years lease of the Property with a 10% rent increment every 5 years commencing immediately upon completion of the Proposed Acquisition.]

FYI, the Mall purchase has been finalized as of 29th Jan 2016.

Related articles:
http://www.mydin.com.my/mydin/mydin-wholesale-hypermarket-bukit-mertajam-pulau-p
http://www.themalaysianinsider.com/citynews/georgetown/article/biggest-mydin-outlet-opens-august-15-in-bukit-mertajam/biggest-mydin-outlet-opens-august-15-in-bukit-mertajam
http://www.bursamalaysia.com/market/listed-companies/company-announcements/4703417
http://www.bursamalaysia.com/market/listed-companies/company-announcements/4990381

The original plan was for the SCR to be completed in 1Q2016. By the sudden push on Thursday (+6 sen), one can speculate that shareholders might be in for an early CNY ang pow! :D

1.2 sen dividend declared. Not sure when the 4Q2015 Financial statements to be released, but definitely this is much lower than what was forecasted in the IPO Prospectus (1.81 sen for YE2015). Not a great start.

Assuming they maintain quarterly distributions at this level, that's only 4.8 sen / yr. (5% DY, 4.5% after withholding tax). Shareholders have to hope that they can turn it around in 2016.

http://www.theedgemarkets.com/my/article/amfirst-reit-secures-rm250m-loan-land-acquisition-penang

For the Mydin Penang purchase.

With any REIT, it's always for the middle to long term. Consider it like rental income, without the hassle of running around managing a property yourself.

To be honest, AMFIRST has seen better days. It used to give a dividend yield of 8 - 10%, compared to 5 - 7% the last few years. AMFIRST is currently trading at all-time lows. This presents an excellent opportunity for those looking for potential growth in DY.

I expect 2016 results to be better than 2015.

Hi ivan9511,

It is under Ambank, collectively just under 33%.
http://amfirstreit.com.my/unitholders.php

I'm not too sure about par value, but with REITs, we look at net asset value (NAV) & dividend yield (DY). To my understanding, the par value system will be gradually phased out with the adoption of the latest revision to the Companies' Act.

Mydin has its own expansion plans - they've done similar sale & leaseback agreements with Lembaga Tabung Haji and Amanah Harta Tanah PNB (AHP) for some of their newer hypermarkets/malls. If you are suggesting a similar injection as what happened with MRCB / MQREIT, I don't think it's likely at this stage.

If AMFIRST is able to sell off Prima 9, that will help reduce current debt levels, interest repayments (savings of more than 3m/yr) as well as the cost of maintaining an empty commercial property (>RM1m/yr I estimate!). That should add on at least 0.5 - 0.6 sen to EPS.

It's 686 million shares, so the estimate is about 1.2 sen to be distributed next year, aside from the regular half-yearly dividends.

Kudos to the management team for selling at a good premium in a slowing office space market.
1. It is a 25 year old building, so a lot of refurbishment activity would be needed in the coming years.
2. NPI was below RM 1.3 million, about 5.5% yield.

(The buyer of AGLC must have some major plans for the land in the near future. At RM 36m, their yield is only about 3.5%. They have until 2018 for all the leases to expire.)

2016 should be a much better year for AMFIRST, upon completion of Summit USJ renovation, and adding in Mydin Penang hypermall triple net rental of about RM16.25m/year (6.5% yield).

I estimate a return to about 5 sen dividend in the next fiscal year. Add in the 1.2 sen above, and that's a very attractive yield (~8.37% gross/ 7.54% nett).

Some other possible activities next year: New shares to be Issued: up to 137.2m shares, based on increase in fund size limit approved at last AGM. If it's a private placement, expect them to raise about RM100m in cash, to offset some of the additional borrowings from the Mydin mall purchase. If it's a rights issue, maybe RM85 - 90m. This is pure speculation, of course.

http://www.theedgemarkets.com/my/article/amfirst-sells-13-storey-office-building-jln-p-ramlee-rm36m

KUALA LUMPUR (Dec 15): AmFIRST Real Estate Investment Trust (REIT) is disposing of a 13-storey office building at Jalan P. Ramlee for RM36 million, cash, to realise its investment in the property.

In a filing with Bursa Malaysia today, the REIT’s manager Am ARA REIT Managers Sdn Bhd announced that Maybank Trustees Bhd, acting as trustee for and on behalf of AmFIRST REIT, had entered into a sale and purchase agreement with Techvance Properties Management Sdn Bhd, in respect of the disposal.

The property, known as AmBank Group Leadership Centre, is an office building comprising a 10-storey office block, a penthouse and a 3-level car park constructed on a freehold tract spanning 1,428 sq metres.

The building is 25 years old and has a net lettable area of 57,801 sq ft. It was originally acquired by the REIT at RM19.06 million on Dec 21, 2006.

AmFIRST REIT said the disposal enables it to realise its investment in the property at an "attractive" price, considering its age and limited scope for growth on the asset value.

“The proposed disposal will also provide the trust (AmFIRST REIT) with greater financial flexibility to explore potential future acquisitions, which are more yield accretive,” it said.

The filing also mentioned that Am ARA REIT Managers intends to distribute the gain on disposal to unitholders, as income distribution.

“The balance proceeds will be utilised to repay existing bank borrowing and thus, reducing the gearing to provide additional headroom for future acquisition,” AmFIRST REIT said.

The REIT expects the proposed disposal to reduce its gearing to 37%, from 38.3% as at Sept 30, 2015.

AmFIRST REIT estimated that the disposal would be completed by the fourth quarter of financial year ending Mar 31, 2016.

It's a tough market for office space this year. If they are able to sell Prima 9, that would be good. Their website says it is valued at RM77.0 million, but chances are it won't fetch as much if they tried to sell it now.

As for MRCB , it is highly leveraged, and has been paring down debts by injecting its assets
into its own MQREIT (formerly Quill Capita Trust).

Cash is king. And at the moment, not many have it.

The last time AMFIRST did a rights issue was in 2012, and the rights were sold at about 20% discount to the theoretical ex-rights price (TERP). If they did a similar sized rights issue now, they would have to price it below 55 sen per share, or risk not having enough people subscribing for it.
Shareholders might not approve it as well.

Private placements would probably be a better bet at this stage. Firstly, share price won't get diluted much, and there's a fresh injection of cash. Secondly, this would stabilize the share price, by letting shareholders know that institutional investors are still buying.

Selling off under-performing assets should also be on their list of things to do.
Increasing their office occupancy rates is going to be a challenge going into 2016, so I'm glad there is some diversification with the upcoming Mydin hypermarket.

Some bad flooding in JB last week. Komtar JBCC was affected.
http://www.channelnewsasia.com/news/asiapacific/vehicles-submerged-after/2265576.html

http://www.theedgemarkets.com/my/article/hunzas-shareholders-give-nod-privatisation-offer

GEORGE TOWN (Nov 18): Hunza Properties Bhd's shareholders have approved the group's proposed selective capital reduction (SCR) and repayment exercise.


http://www.bursamalaysia.com/market/listed-companies/company-announcements/4923657

Only 11 shareholders who attended the EGM voted against it.

http://www.bursamalaysia.com/market/listed-companies/company-announcements/4916821

Interim income distribution of 2.03 sen per unit (of which 2.02 sen per unit subject to withholding tax and 0.01 sen per unit tax exempt) in respect of the six-month financial period from 1 April 2015 to 30 September 2015.

Quarterly results looks to be in line with expectations, given the current economic climate.
Prima 9 is still vacant.
Dividend yields should start to improve once Mydin Hypermarket Penang is factored in, and after the Summit USJ renovations are done.

The drop today seems like a knee-jerk. With the higher excise taxes on cigarettes today, will alcohol be next on the list?

http://www.theedgemarkets.com/my/article/texchem-unit-repurchase-wisma-texchem-and-land-rm1995m

KUALA LUMPUR (Oct 28): Texchem Corporation Sdn Bhd, a 73.81%-owned subsidiary of Texchem Resources Bhd, will purchase Wisma Texchem and the land occupied by the industrial complex in Subang Jaya, which it once owned, from Amanah Raya Bhd for RM19.95 million.

http://www.theedgemarkets.com/my/article/sunway-reit-see-higher-non-taxable-income-distribution-iba-claims

KUALA LUMPUR (Oct 28): Sunway Real Estate Investment Trust (REIT) will be able to pay higher non-taxable income distribution from the first quarter of its financial year ending June 30, 2016, onwards, after winning a judicial review that allows it to claim for industrial building allowance (IBA) for its properties.

http://www.theedgeproperty.com.my/my/content/hunza-properties-buys-land-penang-affordable-housing

KUALA LUMPUR (Oct 20): Hunza Properties Bhd is acquiring a 3.924ha piece of freehold land in Bayan Baru, Penang for RM57.02 million cash, on which it intends to build affordable homes.

The good news is, CMMT's other properties are all showing improved net property income (NPI), year-on-year. Sungai Wang definitely needs a revamp. The next-door closure of BB Plaza also means lower shopper traffic as well, but the ongoing MRT construction work is the real killer here.

http://www.theedgeproperty.com.my/my/content/perak%E2%80%99s-d-mall-and-d-hotel-attract-bids-rm130m

Some rumours of new acquisition.

Now that all the announced dividends are ex-date, there should be less warrant conversions, except for medium to long-term investors. I expect Sunway will continue to support the share price with regular share buybacks. Main catalyst will probably be the MRT3 project via Sunway Construction. However, let's see what Budget 2016 (23rd Oct 2015 Friday) has in store for the Property & Construction sectors.

Next quarterly results expected 29-Oct-2015, together with another dividend. In times of uncertainty, people chase stable dividend yields, even if it is just 4-5% p.a.

http://www.theedgemarkets.com/my/article/igb-sells-freehold-gombak-land-ecofirst-unit-rm628m

KUALA LUMPUR (Oct 6): IGB Corp Bhd's indirectly-owned unit Harta Villa Sdn Bhd (HVSB) is selling a piece of freehold land measuring some 10.155ha in Ulu Kelang, Gombak, Selangor, to a wholly-owned unit of Ecofirst Consolidated Bhd, for RM62.8 million.

Looks like a knee-jerk reaction to the TPPA. Lower trade tariffs means potentially cheaper imported cars.

http://www.themalaysianinsider.com/mobile/malaysia/article/who-gains-loses-out-from-trans-pacific-trade-deal

http://www.theedgeproperty.com.my/my/content/suncon-5-after-being-touted-strong-candidate-forlrt3-mrt-2-projects

KUALA LUMPUR (Oct 2): Sunway Construction Group Bhd's shares rose as high as 5.22% following a report that the company is in good stead to participate in work packages for upcoming government infrastructure projects.

At 12.05pm, the stock gained as much as 6 sen to RM1.21, before paring gains. It settled at RM1.20 with a total of 4.66 million shares done.

The construction arm of Sunway Group was relisted on Bursa Malaysia on July 28, after it was privatised 11 years ago.

In its report today, research firm Hong Leong Investment Bank Bhd (HLIB) said as the company has experience with all three major public transport projects — Light Rail Transit (LRT), Mass Rapid Transit (MRT) and Bus Rapid Transit (BRT) systems — it has a strong footing to participate in the upcoming work packages for the LRT Line 3 and MRT Line 2 projects which are expected to begin next year.

"Plans to implement 12 more BRT lines should augur well for Sunway Construction as it is the only contractor that has undertaken such a project," it added.

http://www.theedgemarkets.com/my/article/triplc-344-morning-proposed-rm14015m-land-disposal

http://www.mih.com.my/mih/images/content_images/Press_Release/press_release570.pdf
http://www.theedgemarkets.com/my/article/al-salam-reit%E2%80%99s-ipo-oversubscribed-296-times

They increased the retail portion of the IPO to cater to the oversubscription. So, if you had applied for the IPO, 100% chance of getting it. IPO Listing next week.

Just some quick calculations, with the assumption that % profit is maintained.
Based on the past quarterly results, SunCon's pre-tax profit margin is about 8% of total revenue.
So, estimated profit of about RM128M from this 1.6B contract.

The contract period is 34 months, so we can estimate it would add about RM 11M pre-tax profit per quarter, or about RM 8M after tax to add to 4Q2015. This will add about 0.6-0.7 sen to EPS, bringing their annual EPS to about 12 sen.
Taking a conservative 10x P/E ratio, indicates RM1.20
If you want to be more optimistic, 12x P/E ratio, indicates RM1.44

One of the major catalyst looking forward, would probably be the LRT3 / MRT3, and other mega infrastructure projects. I expect SunCon to be able to get their fair share of contracts and tenders over the next 2-3 years.

http://www.bursamalaysia.com/market/listed-companies/company-announcements/4865221
http://www.theedgemarkets.com/my/article/no-board-rep-ql-resources-sells-entire-386-stake-lay-hong

In a filing to Bursa Malaysia, QL Resources said it has disposed of all its 38.63% shareholding — a total of 19,865,700 ordinary shares of RM1 each in Lay Hong — at RM3.05 apiece via a direct business transaction on Bursa.

==
Have to wait for more information. Did QL sell it back to the Yap family, or a 3rd party?
Expect some sharp movements in the share price on Monday.

From what I can see, the 5 sen dividend was proposed in the most recent quarterly results (2Q 2015), date to be determined later. The 26 sen dividend is a special dividend on its own.

Sunway continues to support the share price with regular share buyback (quite consistently since June 2015), accumulating more than 4.6M treasury shares this year at prices mainly between 3.30 - 3.40. Total no. of treasury shares stands at ~13.6M today which represents 0.77% of total no. of outstanding shares.

Some of the selling today might be due to speculation on who will be awarded the LRT3 project. I am of the view that it is a big pie, and all the contenders will get a slice eventually, irrespective of who wins the main project.

http://www.bursamalaysia.com/market/listed-companies/company-announcements/4855561

Based on the Special Cash Dividend of RM0.26 per Sunway Share and the five (5)-day weighted average market price of Sunway Shares up to and including 1 September 2015 (being the market day immediately preceding the date of the announcement of the entitlement date for the Special Cash Dividend (“Entitlement Date”) as announced on 2 September 2015) of RM3.37, the exercise price of the Warrants shall be adjusted from RM2.43 to RM2.25.

The adjustment to the exercise price of the Warrants is expected to take effect on 3 October 2015, being the day next following the Entitlement Date.

===
Possible arbitrage opportunities for those looking to buy the mother share at a discount via the warrant.

http://www.bursamalaysia.com/market/listed-companies/company-announcements/4837845
Results out. Very steady, considering the current market turmoils.

http://www.bursamalaysia.com/market/listed-companies/company-announcements/4837885
The Board of Directors of ELK-Desa Resources Berhad has adopted a dividend policy to distribute not less than 60% of the Group’s annual net profits after tax to shareholders of the Company with effect from the financial year ending 31 March 2016.
The dividend policy is an initiative taken by the Company to consistently reward its long term shareholders.

Assuming they maintain their current EPS of about 15 sen, that means an estimated dividend payout of about 9 sen.

Unlike a bank, they can't raise funds through fresh bank deposits. To grow faster, they either have to borrow (debt), or issue new shares (equity) through private placement or rights issues. What I like about this company, is they've kept their bank borrowings relatively low. Their Non Performing Loans (car payment defaulters) are also manageable. In the current economic environment, Cash is still King.

Earnings per share dropped from 1.55 sen to 1.01 sen this quarter vs last year.
Overexposure to commercial office space has hurt similar REITs (e.g. TWRREIT, MQREIT). This is due to a glut in new commercial developments in Malaysia. Couple that with a knee jerk reaction to the weak ringgit and yuan depreciation.

Main factors to consider:
1. According to their financial report/corporate presentation, Prima 9 in Cyberjaya has been vacant for 2 quarters so far. They need to fill it up soon, or sell the asset.
2. Summit Mall USJ still under renovation under 1Q 2016. Short term pain, long term gain.
3. There was also a RM1.1m impairment this quarter for bad debts (trade receivables), which shaved about 0.15 sen off the EPS. Hopefully, this is a one-off, and not recurring.
4. Mydin Hypermall Penang will start to contribute to revenue from 3rd financial quarter onwards.
5. At its peak, this stock was generating 7.3 sen dividends annually. If you were to take 1.01 sen EPS this quarter as a baseline, worst case scenario 4 sen dividend for the year. At 75 sen, that's still a 5.3% dividend yield (net yield 4.8%).

In the short to medium term, I expect this stock to hover between 70 - 80 sen, at least until their quarterly results improve. A good opportunity for longer term investors, as you would be buying a RM 1.21 NAV stock at almost 40% discount.

http://www.bursamalaysia.com/market/listed-companies/company-announcements/4826709
Quarterly results announced yesterday.

"The decline was mainly due to lower occupancy rate at Prima 9, The Summit Retail and Menara AmBank. The occupancy at The Summit Retail is impacted by the ongoing refurbishment exercise and relocation of tenants. The refurbishment and rebranding of The Summit Retail is expected to be completed by the first quarter of 2016.
Property expenses decreased by 6.2% or RM0.6 million as compared with the corresponding period substantially due to lower electricity charges and facility management fees. Interest expenses were higher by 23% mainly due to increase in the cost of borrowing resulted from the increase in the overnight policy rate (“OPR”) by 25 basis points in July 2014 coupled with the additional borrowing incurred to finance the ongoing refurbishments."

"The Manager expects to conclude the strategic asset acquisition, Mydin Hypermall Penang in the 3rd Quarter of 2015. The acquisition will have a positive impact on the performance of the Trust moving forward."

Good opportunity to accumulate before the special dividend announcement.

4.27 is the estimated FD RNAV, not the Target Price. Kenanga's TP for UEMS is 1.10. Compare this to PublicInvest TP 2.15, AmResearch TP 1.29. Kenanga's TP seems the most prudent. Considering AUD has dropped as well, not a bad investment to diversify away from Iskandar.

Here's my two cents on the matter. If you feel that RM1.20 is too high, then don't buy SunCon. Buy Sunway instead, since the proceeds (~22-28 sen/share) from the SunCon IPO is expected to be distributed out to shareholders as a special dividend.
As for Tropicana, yes they are looking at some RM630m+ cash from asset disposals, but it is most likely they will use the bulk of it to reduce their massive bank borrowings, rather than paying a special dividend. That being said, you're still paying ~RM1 for a RM2 NAV company.
Most of the major property developers seem to be getting their cash flows in order, in anticipation of the inevitable recession. As investors, we should as well.

http://www.bursamalaysia.com/market/listed-companies/company-announcements/4782457

On behalf of the Board of Directors of CapitaMalls Malaysia REIT Management Sdn. Bhd., the manager of CMMT, CIMB is pleased to announce that the Board had, on 24 June 2015, fixed the issue price of 239,635,600 new Units (including 87,035,600 new Units to CIL) at RM1.32 per Unit and successfully identified placees for the Proposed Placement to raise gross proceeds of RM316,318,992, following the close of the bookbuild exercise.

7.5 sen dividend announced for the year.
But, they also announced a proposed renounceable rights issue of up to 62,500,000 new ordinary shares on the basis of one (1) Rights Share for every two (2) existing ordinary shares.

GST has affected second-hand car sales, and consequently the car loan/hire purchase market. Seems they are making sure their cashflow doesn't dry up in the short to medium term.

On paper, they have over RM50m in cash/FD, but that is after the ICULS which raised RM100m (which will also add about 80m new shares upon maturity). Let's assume a rights issue at RM1 per share, which will boost their cash reserves by another RM60m+. That's over RM110m cash in total. To put that in pespective, annual revenue was RM57m.

Assuming profits are maintained during the expected slowdown, the share dilution will mean lower EPS & DY in the short term. But let's see how they use the cash to grow.

http://www.therakyatpost.com/news/2015/05/30/duke-3-expected-to-reduce-50000-vehicles-entering-the-city/

Half Year Dividend 2.44 sen vs 3.70 sen in 2014 for the same period. (-34%)
Full Year dividend 5.53 sen vs 7.35 sen for the previous yr. (-24%)
3 main factors:
1. Higher interest costs; 2. Higher electricity costs; 3. Lowest occupancy rate in the last 5 years.
Moving away from commercial offices is probably a good step, but I don't think we'll see the share price moving above 95 sen any time soon.

The shareholders have spoken, and they have rejected the Burger King purchase.
http://www.thestar.com.my/Business/Business-News/2015/02/25/Brahims-shareholders-reject-RM95m-purchase-of-Burger-King-franchise/?style=biz

http://www.theedgemarkets.com/en/article/singapores-gic-selling-sunway-stake-worth-more-120-mln-term-sheet

Singapore's GIC selling most of their stake in Sunway. Knee-jerk reaction. Who knows? Maybe the weak ringgit plays a part in this decision.

According to the Financial results today, MITRA's EPS at 3.41 sen for the last quarter. EPS 7.43 sen for YE2013. Board of Directors recommending a 2 sen dividend (just over 4% based on current market price). MITRA dividends are usually announced in May.

2013 Profit higher than 2012, but to be fair, this is mainly due to disposal gain on investment in an associate company (3.8m profit).

Only major concern with this stock is probably their cashflow - relatively high short-term borrowings and bank overdrafts. Somewhat risky, given the sluggish property market.

On the plus side, Net Asset per share at 88 sen. Stock might still have some 'kick' left in it.

According to the financial results, the dividend shares will be credited on 3rd March 2014.