Posted by richkid1 > 2015-12-19 11:37 | Report Abuse

gforce2 do you forsee any further Mydin hypermarket injection into AmFirst? Amfirst own office buildings don't seem to do well with empty Prima 9. Or can Mydin use AmFirst as backdoor listing for their group?

Posted by gforce2 > 2015-12-21 11:23 | Report Abuse

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.

Posted by ivan9511 > 2016-01-06 19:29 | Report Abuse

hi richkid1 and gforce2

I just new bought this counter .

Can I ask you guys a question ?

Is it Amfirst also under Ambank group.
And why this counter no PAr value one .
I checked alreday Par value is 0 .

This counter worth to hold for long- term

Posted by gforce2 > 2016-01-08 18:23 | Report Abuse

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.

Posted by ivan9511 > 2016-01-09 00:21 | Report Abuse

Thanks
gforce2 :

Thanks brother I understand .

Do you think this counter good ?
Can hold for long term

Posted by gforce2 > 2016-01-11 23:02 | Report Abuse

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.

Posted by gforce2 > 2016-01-18 20:40 | Report Abuse

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

For the Mydin Penang purchase.

Posted by nkk53 > 2016-02-11 10:38 | Report Abuse

Can Mydin pay 2 mil per mth rental to amfirst?

Posted by gforce2 > 2016-02-11 23:29 | Report Abuse

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

Posted by m00077 > 2016-02-13 10:25 | Report Abuse

rforce2, I am interested in this counter in view of high dividend yield. However with the additional borrowing secured to purchase Mydin property, how confident can AMFIRST maintain current profit? Hope to listen to your view.

Posted by m00077 > 2016-02-13 10:27 | Report Abuse

gforce2, you expect 2016 results to be better than 2015. In what way it will be better? Your response is highly appreciated.

Posted by property > 2016-02-14 12:01 | Report Abuse

Why not? Mydin received RM 250 million from AmFirst for sale of Mydin Hypermall.

nkk53 Can Mydin pay 2 mil per mth rental to amfirst?
11/02/2016 10:38

Posted by richkid1 > 2016-02-14 12:10 | Report Abuse

m00077 can I answer on behalf? Yes is my answer due rental income(RM 2 million pm) for Mydin Hypermall starting Jan'16.

The acquisition of Mydin Hyprmall has been completed on 29 January 2016 and starts to generate positive net rental income to the Trust.
On the announced proposed disposal of AmBank Group Leadership Center, it provides the Trust an opportunity to realise the Trust’s investment at an attractive price. The sales price of RM36.0 million represents a premium of 57% to the Property’s carrying value of RM22.9 million as at 1 December 2015 and is expected to generate a realised net gain of RM8.4 million. The realised net gain from the proposed disposal will be distributed as income distribution and the balance net proceeds will be used to pare down the existing debt to create additional headroom for future potential acquisitions and value enhancing investments. The existing tenant of AmBank Group Leadership Center, the AmBank Group of companies will be relocated to Menara AmBank and this will improve the occupancy rate of Menara AmBank.

Posted by gforce2 > 2016-02-15 05:25 | Report Abuse

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.

Posted by m00077 > 2016-02-15 09:05 | Report Abuse

Thank you richkid1 and gforce2. Please keep in touch.

Posted by Te Yang > 2016-02-21 18:23 | Report Abuse

Q4 profit plunged more than 50% omg~
http://www.bursamalaysia.com/market/listed-companies/company-announcements/4998957

Posted by supermix2 > 2016-02-21 18:27 | Report Abuse

Posted by Te Yang > Feb 21, 2016 06:23 PM | Report Abuse

Q4 profit plunged more than 50% omg~
http://www.bursamalaysia.com/market/listed-companies/company-announcements/4998957


I expect the price to drop further by then.

Posted by confuse > 2016-02-25 14:56 | Report Abuse

TTM DPS 4.47 sen more than Karex 2.5 sen. Why only 73 sen not above RM 4 like Karex?
http://klse.i3investor.com/servlets/stk/fin/5120.jsp

Posted by gforce2 > 2016-02-27 03:42 | Report Abuse

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.

Posted by I_like_dividend > 2016-03-31 22:50 | Report Abuse

AGLC disposal completed today. Special dividend coming?

Posted by LATO' SELI > 2016-04-05 15:14 | Report Abuse

Is TP of 1.15 is realistic/achieve able ??

Posted by gforce2 > 2016-04-06 15:39 | Report Abuse

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.

Posted by LATO' SELI > 2016-04-09 22:27 | Report Abuse

Thanks gforce2

Posted by thebesticould > 2016-04-13 10:57 | Report Abuse

Good info gforce2. appreciate it

Posted by sun99 > 2016-04-21 19:11 | Report Abuse

wow outstanding result

Posted by Angielim9955 > 2016-04-22 03:04 | Report Abuse

yes, really amazing, AMfirst is the best improvement among all reit counters , I believe is the best net profit as well .I think will be Superstar at Reit very soon. keep going and back to Rm1.50

Posted by ejtic > 2016-04-22 20:38 | Report Abuse

Pray n hope d Mgmt could get rid of Prima 9 ASAP so that we could get better dividends

Posted by I_like_dividend > 2016-04-23 18:46 | Report Abuse

Agree. Best is target minimum 5 sen DPS every year.

Posted by ejtic > Apr 22, 2016 08:38 PM | Report Abuse
Pray n hope d Mgmt could get rid of Prima 9 ASAP so that we could get better dividends

Posted by gforce2 > 2016-04-29 23:07 | Report Abuse

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.

Posted by gforce2 > 2016-04-29 23:27 | Report Abuse

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.

Posted by I_like_dividend > 2016-04-30 10:48 | Report Abuse

Dear AmFirst comrades vacant Prima 9 remain a sore if not mistaken above 1 year already. Why so difficult to find buyer? Is the selling price too high; can lower it? Or can ask Prima 10 tenants shift to Prima 9 and sell Prima 10 instead like what they did on AGLC? Any healthy discussion is most welcome.

Posted by I_like_dividend > 2016-04-30 11:15 | Report Abuse

Prima 9 was bought at RM 72.89 million. Assuming interest rate 4.25% to purchase interest expenses alone cost RM 3.1 million to AmFirst bottomline.

Feedback and Enquiries
We welcome feedback from our investors so that we can further improve our interaction with our investing community.
Please feel free to contact us via the followings:
Mr Wong Khim Chon En. Zuhairy bin Md Isa
Executive Director/Chief Executive Officer Deputy Chief Executive Officer
E-mail: khimchon@ambankgroup.com E-mail: zuhairy-isa@ambankgroup.com
En. Abdul Rahman bin Mohd Joned
Senior Manager, Finance
E-mail: rahman-joned@ambankgroup.com

Posted by gforce2 > 2016-05-03 21:55 | Report Abuse

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.

Posted by I_like_dividend > 2016-05-06 13:32 | Report Abuse

REITs on property investors' radar
- See more at: http://focusmalaysia.my/Assets/REITs%20on%20property%20investors'%20radar#sthash.khXzjQAl.dpuf

Posted by I_like_dividend > 2016-05-13 10:32 | Report Abuse

MRT line 2 good for AmFirst Cyberjaya property?

Posted by gforce2 > 2016-05-19 15:20 | Report Abuse

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.

Posted by I_like_dividend > 2016-06-09 10:34 | Report Abuse

AmFIRST REIT - Set For Recovery?
http://klse.i3investor.com/blogs/hleresearch/98074.jsp

Posted by I_like_dividend > 2016-06-09 10:36 | Report Abuse

Why rental rate at Summit USJ so cheap compare to PavReit da:men? Got room to rise further?

Despite being a strata title mall, the efforts of refurbishment and reposition exercise to create better shopping experience should bear fruit in the near term, as such higher positive rental reversion is very much likely going forward considering the average rental rate is only about a quarter of that of da:men.

Posted by I_like_dividend > 2016-06-14 13:13 | Report Abuse

Is AmFirst REIT regaining favour?
http://www.thestar.com.my/business/business-news/2016/06/13/is-amfirst-reit-regaining-favour/

Posted by m00077 > 2016-06-14 14:55 | Report Abuse

AMFIRST RENTAL INCOME IS QUITE GOOD BUT WORRY ABOUT THE SUSTAINABILITY OF RENTAL INCOME. IF THE INCOME DROPS, AMFIRST IS GOING TO SUFFER DUE TO HIGH BANK BORROWINGS. EVERY COMPANY IS GOING TO FACE PROBLEMS DURING ECONOMIC DOWNTURN, IN PARTICULAR, THOSE WITH HIGH BANK BORROWING.

Posted by xncziyi44 > 2016-06-17 16:28 | Report Abuse

these group of mgrs.r new n look effective n ready for actions.good luck to all comers.retail appear stronger the office rents,amix may be safer bet.

Posted by Good_News > 2016-07-01 14:06 | Report Abuse

New LRT good for Summit Subang?
http://www.thestar.com.my/news/nation/2016/07/01/in-line-for-a-robust-economy-pm-lep-on-the-right-track-to-boost-national-coffers/

Posted by qingqingqing > 2016-07-12 20:11 | Report Abuse

Up up

Posted by ejtic > 2016-07-13 19:08 | Report Abuse

Well done BNM!

Posted by qingqingqing > 2016-07-14 21:23 | Report Abuse

Any news?amfirst move most among reits

Posted by gforce2 > 2016-07-29 00:23 | Report Abuse

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

Posted by qingqingqing > 2016-08-07 16:20 | Report Abuse

Only news on The Summit....Prima 9 no news = bad news

Posted by gforce2 > 2016-08-12 10:17 | Report Abuse

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.

Posted by qingqingqing > 2016-08-26 23:12 | Report Abuse

Occupancy of many properties dropping.... bad

Posted by Zea XG > 2016-09-29 15:03 | Report Abuse

umm... what is happening lol