Am ARA REIT Managers Sdn Bhd (“Am ARA”), the Manager of AmFIRST Real Estate Investment Trust (“AmFIRST REIT” or “the Trust”) is pleased to announce that for the first quarter ended 30 June 2012, AmFIRST REIT achieved a realised net income of RM9.8 million or 2.29 sen per unit. Gross revenue rose to RM26.6 million from M22.7 million whilst net property income grew from RM15.3 million to RM17.6 million as compared to the previous corresponding period. Am ARA’s Chief Executive Officer, Mr Lim Yoon Peng said the improved results were attributed to the additional contribution from the new acquisitions of Prima 9 and Prima 10 which were completed on 30 November 2011.
On 7 August 2012, the Trust had announced that the rights issue and increase in fund size have been completed following the listing of 257,400,600 rights units on the Main Market of Bursa Malaysia Securities Berhad. The net rights proceeds of approximately RM209 million has been utilised to pare down the Trust’s existing bank borrowings thus lowered the gearing to 29.7%. Mr Lim said “As the first Malaysian REIT to undertake a rights issue, we are pleased with the result of oversubscription of 13.5%. It also demonstrates that well capitalised REITs will continue to be a defensive safe haven for investors looking at recurring and stable income distribution amid volatile market conditions. With the completion of the rights issue, the Trust will have a stronger balance sheet to grow the fund with accretive acquisitions.”
On 17 August 2012, the Trust also announced the execution of a Sale and Purchase Agreement (“SPA”) between Maybank Trustees Berhad and Johan Kembara Sdn Bhd for the proposed acquisition of Kompleks Tun Sri Lanang (also known as Jaya 99)located at No. 99, Jalan Tun Sri Lanang, Melaka for a total cash consideration of RM 86 million. This is an 18-storey purpose-built leasehold commercial building newly completed in June 2011, comprising of twin towers (9-levels and 10-levels) sitting atop a seven-level podium block, consisting of 557 car park bays and a mezzanine floor. Jaya 99 is a modern designed high-rise building strategically located in the heart and soul of Melaka and boasts unprecedented accessibility to financial institutions, public amenities and world class hotels. Complemented by its own modern amenities such as conference rooms, function halls, retail outlets, F & B outlets and ample car parking, Jaya 99 will be the pioneer in Melaka to offer a truly ‘Complete Business Center’ concept to cater for modern business demands.
Mr. Lim added, “There is a shortage of prime office space with modern designs in Melaka city. The office sub-sector in Melaka was traditionally served by shop-offices, but with the change of business environment resulting from population growth, increased business opportunities and robust growth of the local economy, the demand for quality office space in Melaka city has improved significantly. Jaya 99 is anchored by Prudential Assurance Malaysia Berhad and Sudong Sdn Bhd (wholly owned by Singtel) which occupy 32% and 20% respectively of the net lettable areas. The other corporate tenants include PricewaterhouseCoopers, Ernst & Young and Suruhanjaya Perkhidmatan Awam. “It is yield accretive and will contribute an additional approximately 0.28 sen per unit per annum based on the enlarged unitholdings.
The acquisition is expected to complete by end of December 2012 and will boost AmFirst REIT’s Assets Under Management by 7.2% to RM 1.28 billion and gearing level will also increase from 29.7% to 34.4%.”
“Moving forward, we will continue to focus on expanding AmFIRST REIT’s investment portfolio via yield accretive and quality commercial properties in high growth areas throughout Malaysia and to implement asset enhancement initiatives to spur organic growth in AmFIRST REIT. This complements well with our investment and diversification strategy to ensure the Trust continues to deliver stable returns and build a quality portfolio of assets for unitholders,” Mr Lim further added.
On 1 November 2012, the Trust announced the completion of the acquisition of Kompleks Tun Sri Lanang (also known as Jaya 99).The acquisition will contribute an additional income of approximately 0.13 sen per unit for the next five months till end of the financial year ending 31 March 2013. Consequently, the Trust’s AUM increased to RM1.27 billion with a total portfolio of nine properties. Mr. Lim added, the Manager will continue to grow the Fund with the injection of quality assets that will deliver sustainable income to the Unitholders.”
This stock moved in a range from 1.00 to 1.15 for the past one year. Doubt will move much since it is an office reit. Office reit yield is under pressure due to incoming oversupply of office space in Klang Valley. However, downside risk is also limited as it was support by dividend yield.
Our greatdreamer thinks that re-furbishment of empty offices is normal when right issues were immediately issued, effectively forfeting investors our sovereign dues of hard cool cash.Keep on investing and dreaming! Why AM are still a small kampung bank?
This counter is mean for dividend payout, not for capital gain. Born in the 'wrong' industry where currently there are oversupply of office space in Klang Valley. Also, promotors and management capability are not as strong as some other REIT manager.
This counter, it annual return (capital gain & net dividend) estimated about only 10%. Very little return even for some long term investors. It is more suitable for Leisure Investor, who invest for fun. Definitely not suitable for investor holding hard core cash.
long term holding (compound), annual 10% rate, not sure about "some" individual, but for low risk sustainable portfolio, this counter is far better than FD or even FOREX FD
Venue Manhattan III, Level 14, Berjaya Times Square Hotel, Kuala Lumpur, No. 1, Jalan Imbi, 55100 Kuala Lumpur
Outcome of Meeting AmFIRST Real Estate Investment Trust ("AmFIRST REIT")
FIRST ANNUAL GENERAL MEETING ("First AGM") OF THE UNITHOLDERS OF AmFIRST REIT
We refer to the announcement dated 30 May 2013 in relation to the Notice of the First AGM ("Notice").
All the resolutions as set out in the Notice were voted on a poll and were carried based on the following results from the Unit Registrar, Symphony Share Registrars Sdn Bhd and Scrutineers, Ernst & Young :-
Special Business
(1) Ordinary Resolution No. 1
(i) 119,764,376 units (representing 99.85% present and voting) voted in favour; and
(ii) 183,670 units (representing 0.15% present and voting) voted against.
(2) Ordinary Resolution No. 2
(i) 119,764,376 units (representing 99.84% present and voting) voted in favour; and
(ii) 196,737 units (representing 0.16% present and voting) voted against.
(3) Two-Third Resolution No. 1
(i) 119,033,824 units (representing 96.33% of all unitholders at the meeting) voted in favour; and
(ii) 35,189 units (representing 0.03% of all unitholders at the meeting) voted against.
(4) Two-Third Resolution No. 2
(i) 119,038,954 units (representing 96.34% of all unitholders at the meeting) voted in favour; and
(ii) 30,059 units (representing 0.02% of all unitholders at the meeting) voted against.
New IPO: Building management systems (BMS), solar thermal systems and energy-saving services provider, Solar District Cooling Bhd aims to list on the Ace Market!
MQ Trader 257 views | 1 d ago
0:17
New IPO: The onshore and offshore support services provider for the O&G industry, Steel Hawk Bhd aims to list on the Ace Market!
MQ Trader 11384 views | 9 d ago
0:17
New IPO: The largest mini-market player and a leading groceries retailer in Malaysia, 99 Speed Mart Retail Holdings Bhd aims to list on the Main Market!
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....
ejtic
256 posts
Posted by ejtic > 2012-07-17 18:24 | Report Abuse
The price 1.03 is quite cheap now to accumulate for future growth. Besides, it's below its NAV 1.44. It's a very good dividend yield of >7%.