Posted by ronnie2u > 2013-08-12 23:42 | Report Abuse

On Ex-Date, the share price will be adjusted downwards by the dividend given (3.5 sen)

Posted by ronnie2u > 2013-08-12 23:44 | Report Abuse

If you buy STAREIT before 16-Aug-2013 and keep until 15-Aug-2013 (5 PM), you will be entitled to the dividend.

Posted by Jonathan Skill Hon > 2013-08-13 00:07 | Report Abuse

oh ok..thank you for explaining.im still newbie.meanin if i buy today and hold till 15 august,i get the dividend too?how will they pay me the dividend?and how much will be d adjusted share price?

Posted by ronnie2u > 2013-08-13 00:16 | Report Abuse

Dividend payout would be e-Dividend (direct to your bank account). Adjusted share price on EX-Date(16-Aug) : Last closing price on 15-Aug MINUS gross dividend payout amount.

Posted by Jonathan Skill Hon > 2013-08-13 08:44 | Report Abuse

oic..thx ronnie2u!

Posted by kelvinongbk > 2013-08-13 15:44 | Report Abuse

This share not much movement..why no one goreng?

Posted by my101home > 2013-08-14 00:40 | Report Abuse

haha.. this is reit, meant for dividend play. No one will goreng and even kena goreng, it wont go up much

Posted by armadasaxon > 2013-08-14 15:27 | Report Abuse

if can goring not called reit

Posted by nskim0909 > 2013-08-19 11:18 | Report Abuse

juz wondering stareit shareholder ad get the dividend?

Posted by my101home > 2013-08-22 20:41 | Report Abuse

no.. end of the month

Posted by ronnie2u > 2013-08-22 22:49 | Report Abuse

Next Dividend payout: 30-Aug-2013

Posted by lwalk > 2013-08-22 22:54 | Report Abuse

10th of sept lah only get paid

Posted by ronnie2u > 2013-08-22 23:07 | Report Abuse

@lwalk: did you read the AMENDED announcement ?

Posted by lwalk > 2013-08-22 23:14 | Report Abuse

HOW strange. i didnt get the alert on jupiter. latest announcement on the program is 2 aug. you're right.. am reading the one in bursa now and there is an amended announcement for 30 aug like you mentioned. good thing you clarified, thx man

Posted by haikeyila > 2013-08-23 10:08 | Report Abuse

Price struggle to break below 1.01 NAV. Looks attractive but this is a hospitality REIT (unsure of the outlook). Debt/capital ratio is at 0.55 which is kinda high.
Pavreit debt ratio 0.17, IGBreit 0.25, Sunreit 0.33, QCap 0.36.

Posted by FLINV > 2013-08-23 15:55 | Report Abuse

I bought it as FD :)

Posted by smartly > 2013-08-23 16:04 | Report Abuse

stay away first. they propose RI placement diluting EPS. :(

Posted by lwalk > 2013-08-23 16:27 | Report Abuse

lets just enjoy the upcoming (early) divvy payout

Posted by Hustle > 2013-08-27 13:40 | Report Abuse

Below 0.90 possibly can consider.

Posted by Jonathan Skill Hon > 2013-09-05 22:55 | Report Abuse

how come the dividend we get is not exact amount of (unit x 0.03793)?
because of tax?

Posted by FLINV > 2013-09-09 21:35 | Report Abuse

I think the formula will be : Taxable value * 0.90 + non-taxable

Posted by haikeyila > 2013-09-12 11:44 | Report Abuse

This counter has NAV of 1.01. But its gearing ratio is 0.5. Does it mean then that it actually is only worth 0.60? Anybody can clarify?

Posted by ipomember > 2013-09-12 16:38 | Report Abuse

Net Asset Value, it is already net.

Posted by sean > 2013-09-24 16:43 | Report Abuse

the price is not moving

Posted by jeffkenneth > 2013-10-18 15:09 | Report Abuse

Anybody can tell me why this is the highest dividend yield among other reits but no movement?

Posted by rlch > 2013-10-18 15:46 | Report Abuse

Last quarter report also never come out. I think bad. See from annual report. Dividend is not supported by earnings how long can this last?

Posted by jeffkenneth > 2013-10-18 15:50 | Report Abuse

Dividend is not supported by earnings how long can this last? < can clarify more?

Posted by rlch > 2013-10-18 16:32 | Report Abuse

Dividend is paid out from past earnings or through more borrowing.

Posted by haikeyila > 2013-10-18 16:33 | Report Abuse

Gearing ratio at 55.26% to increase to 60%. EPS 4.21 sen but distribution 7.38 sen. If you look at the annual report, the extra money came mainly from 'depreciation'. (((confused)))

Posted by Yap Fook Yik > 2013-10-18 18:16 | Report Abuse

Thank you.

Posted by Liew Chee Khong > 2013-10-19 13:47 | Report Abuse

Before the restructuring of its portfolio to pure hospitality business, its 2008 and 2009 net operating cash flow mirrored quite closely to its realized profit for distribution which was around RM 81 million.

During 2010 Lot10 and Starhill Gallery were disposed to SG REIT and settled in 2011 partly in cash (RM 625 million) cash and partly SG REIT’s redeemable CPU with distribution rate of 5.65% per annum. Its RM 2b Australia Hotels acquisition in 2012 was satisfied with RM 553 million cash and RM 1.4b borrowings. Starhill FY 2012 operating cash flow is too weak to pay the RM 91 million distributions; this was making possible with its cash proceeds from SG REIT.

Going forwards, Starhill REIT management proposed to raise RM800 million by placement of new units (estimated fund size increased from 1.324 b to max. 2.125b).

Judging from the FY 2013 net operating cash flow of RM 230 million, after deducting interest payment of RM 46 million and distributions of RM 95 million, its still have a comfortable RM 89 million surplus.

The unit placement will reduce its gearing level to around 36% from current 119% (with borrowings reduces by half and an expanding Unitholders’ fund). With this, the interest payment will also reduce substantially.

Barring unforeseen circumstances, it should have no problem to declare the same distribution per unit in future even with the expanded unit size. With the reduction in debt, it will give Starhill flexibility to borrow for yield accretive acquisitions in the future.

If you want to compare year on year performance, it is better used EBITDA (earning before interest, tax, depreciation and amortisation) after adjusting non-recurring profit or loss including unrealized fair value adjustment on investment properties etc.

Posted by Liew Chee Khong > 2013-10-19 14:31 | Report Abuse

Starhill REITs has applied to increase the 50% statutory borrowings limits of its total assets to 60% although its unit placement will reduce its limit from current 52% to 26%. Its application to increase the borrowings limit and unit size will require consent from SC and Bursa beside the trustee and unit holders.

Posted by jeffkenneth > 2013-10-19 22:21 | Report Abuse

So your suggestion is hold or buy now?

Posted by Liew Chee Khong > 2013-10-20 09:10 | Report Abuse

As long as the business can generate an annual operating cash flow of RM 200 million or more. It should be able to support a distribution to give a dividend yield in excess of 7% at current price level.

I will hold my position but not buying more as i have a single stock limit set in my high dividend yield stock portfolio - CScenic is also one of them. This portfolio will give a steady stream of dividend income. The growth stock like Zhulian will give lower dividend payout but stronger capital appreciation. So it all depend on what you want.

Posted by Liew Chee Khong > 2013-10-20 09:28 | Report Abuse

When you invest in REITs, it has the ability to generate profit and cash flow from operation and disposal of its investment properties. Since 90% of its annual profit is distributed, it is only through borrowings or increase equity size to expand.

Revenue growth of its existing assets can only be achieved through rental hike, expansion of floor space and asset enhancement exercise. So capital appreciation is limited unless good assets are brought in with better earning yield.

Posted by Liew Chee Khong > 2013-10-20 14:22 | Report Abuse

Its business model in Australia is more on hotel operations rather than leasing its hotels to hotel operator for rental income. That why its administration expenses were high.

Its total assets invested in Australia is comparable to the Malaysia side in term of ringgit valuation. Since it has not accounted for the Australia Hotels' full year results, it is difficult to compare the ROI performance.

At the moment, its Australia segment has pulled down the overall performance. if its Australia Hotels poor earning trend still persist for next two years, then its ability to maintain the same level of distribution is questionable. i will consider disposing my holding on this counter.

In the meantime, its distributable realize income (RM 130 million as at 30/6/13) and operating cash flow are sufficient to support the same level dividend payment in the next two years. Let watch how the management can improve the Australia Hotels performance. Need to monitor closely its quarterly announcement for FY 2014.

Posted by Chin Aik > 2013-10-20 14:41 | Report Abuse

hi Mr Liew Chee Khong, nice and interesting info u posted. i also have been eyeing on CScenic and also STAREIT.
CSenic seems like to high to enter now so im thinking to enter when it dropped <1.10.
and STAREIT seems like its good to enter now. may i have your opinion??
im still new in dividend yield stock so im not sure whether my decision its appropriate or not.
thanks

Posted by Liew Chee Khong > 2013-10-20 17:33 | Report Abuse

Frankly speaking, my average unit cost on both is around 90 sen. The problem with dividend yield stock is low earning growth (up and down within a range). The good thing is the management willing (in the case of CScenic) to reward shareholders with good dividend payout (ranging from 40%-100% of its earning for the past 5 years).

At RM 1.10, its earning yield (EPS/Share price) is estimated to be 9% and if the 60% payout ratio on earning. Your dividend yield will be 6.4% or lower (because Scenic last 2 Quarters performance is lower) unless management increase the payout ratio.

If you are long term investor and satisfied with a yield of 6% with 3% p.a. sustainable growth rate in the next 5 years. Then go ahead with CScenic.

As for Starhill, there is an added risk element in its Australia investment - forex risk. Australia government is trying to have a weaken Aussie dollar to promote export (almost every government is doing that). The Australia Hotels are new and performance not proven. Better wait for clearer picture before jumping in.

Posted by my101home > 2013-10-23 18:07 | Report Abuse

Thanks Chee Khong for the clear explanation. I have a question, you mentioned that they manage their Australia hotels that means they have to bear all the business risk right? On their Malaysia hotel operation, they lease out the building and collect the rental, that also mean the income should be relatively flat but stable? It looks like the Australia acquisition has made them more volatile as FX and business comes into play.

On CScenic, I noticed that in recent years its dividend payouts are more than its earning per shares, I afraid its high dividend may not be sustainable..

Posted by haikeyila > 2013-10-23 18:12 | Report Abuse

take a look at starhill global reit (SGX). seems to me they have a much more quality portfolio, they even injected lot 10 and starhill gallery into it. kinda makes me feel like the malaysian reit is being treated like an afterthought by the owners.

Posted by Ng MC Angie > 2013-10-24 14:40 | Report Abuse

D worst REIT stake

Posted by Liew Chee Khong > 2013-10-24 22:20 | Report Abuse

Yes, your are right My 101. Starhill Malaysian and Japanese hotels revenue streams are fixed, medium and long term lease income which is insulated from cyclical nature of the hospitality business.

Whereas its Australia hotels have more risks but also have the benefit of potential upside, very much depend on the vibrancy of the tourism in Sydney harbour hotel on Pitt Street, Brisbane Marriot Hotel and Melbourne Marriott Hotel.

For the past 5 years since 12/2008, only in FY 2010 that its dividend paid out (101%) is more than its earning. Its 5 years average paid out ratio is 72%, well below the 75% mark. Its annual Capex looks more like asset replacement rather than for expansion. Its annual net operating cash flow is much stronger than its profit numbers. Since it has zero borrowings, its cash holding per share in FY2012 is 2 times its dividend per share for the same year.

In view of CScenic high dividend payout ratio and steady earning, its ROE has improved from 8.7% in 12/2008 to 13.2% in 12/2012. This should the way, reward shareholders if the management has no plan to use the surplus cash for expansion. I will give CScenic an "A" for good corporate government. Unlike the other Chinese companies like CSL with huge cash pile but having transactions defied logic. Like getting 0,3% per annum for its cash hoard, then borrowed at 6.5% for capex secured on assets with shareholders' guarantee.

Posted by Liew Chee Khong > 2013-10-24 22:22 | Report Abuse

Sorry, good corporate governance.

Posted by Liew Chee Khong > 2013-10-25 08:20 | Report Abuse

For a cash cow like CScenic with limited expansion opportunities, its business is durable and still can compete well over the years. It has not make a loss since 2004 and stood the test of time.

Hence, the business must have the capability to generate profit and earning reserve for distribution. In addition, it also must have the ability, cash minus borrowings, to support dividend payment. Finally, most important of all, management must have the intention to reward shareholders with handsome dividend payout.

CScenic EPS of 11 sen per share in 2012 was closed to its historical high. With its current price level, its P/E is at 11.1. Going forward, it will difficult to maintain that pace especially with imminent US tapering move and likelihood of interest rate hike in future. Though Scenic has zero gearing, but investor will demand for higher yield in a high interest rate environment. With limited upside in EPS, then share price has to come down. Though in the short term, management still have the flexibility on increasing the dividend payout ratio to improve the yield.

Posted by my101home > 2013-10-25 09:37 | Report Abuse

Thanks for your detailed review !

Mind to share any high yield or high potential stocks?

Posted by Liew Chee Khong > 2013-10-25 19:05 | Report Abuse

UchiTec is one of my favourite counters, its Art-of-Living products, namely fully-auto coffee machines, contributes approximately 80% to the Group’s revenue. Biotechnology products, on the other hand, consist of high-precision weighing scales contribute approximately 20% to the Group’s revenue.

Its largest export market is Europe, and almost 96% of our total revenue is derived from exports to the region. It has attempted to promote its products in Taiwan and Hong Kong to diversify markets.

100% of its revenue is billed in USD; it has entered into foreign currency forward contracts to mitigate exposure to USD fluctuations.

Its pioneer status for mixed signal microprocessor-based application and system integration products expired on 31 December 2012. Profit generated from such products commencing January 1, 2013 will attract a corporate tax of 25%. Its future after tax profit will be lowered.

However, despite wage hike in Malaysia and China, it managed to maintain its operating profit margin at 44%, largely due to the effectiveness of its cost-cutting measures that resulted in savings in material consumption that allowed salary hikes.

Net operating cash generated in 2012 was RM53.6 million, representing 109.6% of its after tax profit.

It has a dividend policy to distribute a minimum of 70% of its profit after tax to shareholders. It has paid 12 cents dividend for financial year ended 2012 due to strong net cash position. Based on current share price of RM1.44, the dividend yield is 8.2%. Going forwards, it will be able to maintain 12 cents yearly dividend in the years 2013 & 2014.

Uchitec not only with strong cash flow and dividend payout; it also has the potential for growth.

Uncitec growth prospect lied in its R&D capabilities. Approximately RM30 million was invested in UCHItecture and was funded internally. The purpose of this new R&D centre is to enhance customers R&D capabilities and to foster closer working relationships with them.

It has spent 5% of its revenue on R&D. Since 2012, it has 30 new projects in the R&D pipeline and scheduled to launch in 2013 and 2014. It has submitted application for pioneer status for new products but yet to receive approval from the relevant authorities.

Posted by my101home > 2013-10-28 14:54 | Report Abuse

Thanks for your update. I have Uchitec in my portfolio also and enjoying its dividend payout. I am a bit worry the potential loss of its pioneer status, its quarterly results have been reiterating no update was given by the authority, look like the renewal chance is slim. the potential tax could cut its profit quite a lot and wonder if future dividend will be maintained at the current level.

Hopefully it will be among the pioneer again.. And Starhill Reit will regain its glory,

Posted by L. C. Chong > 2013-11-06 13:39 | Report Abuse

REIT Analysis–“Beta” Analysis on STAREIT
http://lcchong.wordpress.com/2013/11/06/reit-analysisbeta-analysis-on-stareit/

Posted by haikeyila > 2013-11-06 13:46 | Report Abuse

very useful spreadsheet. thank you, sir.

Posted by lwalk > 2013-11-06 14:31 | Report Abuse

good stuff LCChong.... so much work put into it.. speechless