Wow! Looks like quite an exciting end of the week! Haven't seen this much volume since Jan 2016. No news so far, but based on past charts, a spike in volume usually means further upside in the coming month. Will AMFIRST beat my optimistic prediction of RM0.85 this year? Have a great weekend - October is gonna rock!
I don’t think this stock has so much potential, the yield is only around 4-5%, but gearing is high (above 40%). Hence, it could not really acquire assets, as its debt level is already quite high. Plus, since its an office REITs, there might be a possibility of lower yield, since the office segment is not performing due to oversupply. If I were you, I will grab other high quality REITs such as Pavilion and KLCC, with yield around 4-5% + potential growth due to its low gearing, below 30%. But if you want higher yield, above 6%, YTL Hosp is a good one. Although gearing is high which would limit its growth, 6% yield is quite attractive, and it is still cheap compared to its peers. Research some more on YTL Hosp and you’ll see.
ZeaXG > Thanks for the update! To add, this is mentioned on Page 9 of the 1Q17 Quarterly Report released today.
=== B10. PROSPECTS During the quarter ended 30 June 2017, the Trust has secured a new tenancy to lease enbloc (with option to purchase) the currently fully vacant property, Prima 9 in Cyberjaya. The new tenancy of Prima 9 will commence effective 1 October 2017. With the fully tenanted Prima 9 and the higher occupancy achieved in The Summit Retail and Office, the Trust’s overall committed occupancy of the properties portfolio has improved to 87.3% as compared to overall occupancy of 82.5% as at 31 March 2017. ===
A quick google search shows agents were still trying to rent/sell Prima 9 earlier this month. Price range (RM80m to RM83m), Rental quotes between RM 3.75 - RM5 psf for Prima 9 & 10. Let's assume RM3.75 psf, on account of the weak office rental market. 111,224 sf = RM417k per month. Since tenancy is from 1 Oct, it's from 3Q17 onwards, so possibly a total of RM2.5m property income for this financial year; (RM5m annualized) For FY17, potential boost is 0.36 sen per share (0.72 sen annualized).
Back to the 1Q17 Results; Earnings looks like it is improving, costs are under control. 1.1 sen per share in realised income this quarter.
With the fully occupied Prima 9 & improving occupancy at Summit USJ, I project earnings to rise to ~1.28 sen per share in 3Q onwards. So, a full year result of approx 4.76 sen per share. At 71.5 sen share price, that works out to a potential 6.65% dividend yield. This is a conservative estimate. If the Prima 9 tenant decides to buy, that would be even better!
walau . amfirst qr quite good . dividend increase drom 019 until 021 really cannot believe only 70sen dividend yield 6% .really a good potential stock office lots is value. online sales or online shops also need a office to operate I can say now amfirst is the best of all reit counters
this stock higest 1.10 , now 071 and the points is soon will get good dividend , I already check currently amfirst dividend yield better than others reit seriously you check and see and the point is qr keep improve dividen keep improve only the prive now is lowest again now is lowest now is lowest I check many times already this stock can fly up to 1.00rinngit now . many online biz or direct sales biz is likely to open a office than a shops you see other shop reit qr drop like hell some even stop the dividend , I dun want realise the name because is no good to do that just believe me buy amfirst I already big big sapu at 0715 soon will get 2sen dividend so if buy now at 071 - 2 dividenn , actually only 069 where to find and remeber highest is 1.10 ringgit
noobiess > Let's look at the latest dividend distribution. Interim income distribution of 2.12 sen per unit (of which 2.08 sen per unit is taxable and 0.04 sen per unit is tax exempt/non-taxable)
Under Malaysian law, REITs are subject to 10% Withholding Tax for individual shareholders. Tax is deducted at source, so the amount you receive is already the net amount. You don't have to declare this amount to LHDN (https://www.hasilnet.org.my/tax-on-reit-investment/)
For the above distribution, for every 1000 shares, you will receive: ((2.08 sen * 0.90) + 0.04) * 1000 = (1.872 sen + 0.04) * 1000 = 1.912 sen per unit * 1000 = RM 19.12
AMMB Holdings Bhd's wholly owned subsidiary AmInvestment Group Bhd (AIGB) has entered into a new shareholders' agreement with Amcorp Properties Bhd in the business of managing AmFirst REIT after the agreement termination with ARA Asset Management (Malaysia) Ltd.
Recall that AIGB and ARA Asset Management had set up a subsidiary known as Am ARA REIT Managers Sdn Bhd to o undertake the management of AmFirst REIT.
Am ARA REIT Managers is 100%-owned by Am ARA REIT Holdings Sdn Bhd.
However, as ARA Asset Management has disposed of its 30% stake in Am ARA REIT Holdings to Amcorp Properties, both AIGB and ARA Asset Management have mutually agreed to terminate the joint venture.
Amcorp Properties is a 71%-owned subsidiary of Amcorp Group Bhd, which is also a substantial shareholder of AMMB.
ivan9511 > No, REITs aren't as volatile as regular stocks. I don't see any limit-up from this news.
Most of the REITs haven't really moved much, except for the window-dressing exercise on 29-Dec-2017. Quite a bit of headwinds: 1) Potential interest rate hike, 2) Glut in Commercial Office & Retail Mall Space. That being said, AMFIRST is trading at a huge discount to NAV, and is attractive from a dividend's perspective >6% p.a. AMFIRST Q Results are only out in February, and dividends are only announced in April & November.
Amcorp Properties (AMPROP) is currently raising funds through a rights issue of preference shares, but their core focus is on overseas properties in UK & Spain and upmarket residential properties in Malaysia. They also have regular income from their renewal energy projects in Malaysia.
We can probably speculate that having AMPROP on board (30% stake in Am ARA REIT Holdings) will make it easier to inject their property assets into AMFIRST. Looking at their annual report, only Amcorp Mall (worth RM 103m) seems to fit that criteria. That would take AMFIRST gearing ratio close to the 50% limit.
The Board of Directors of Am ARA REIT Managers Sdn. Bhd. (“REIT MANAGER”) wishes to announce that on 15 January 2018, Amcorp Group Berhad (“AMCORP”) has acquired 13,650,000 units of AmFIRST REIT for a total consideration of RM9,443,408.08 from Jadeline Capital Sdn. Bhd. (“Jadeline”) via a Direct Business Transaction. In this regard, Jadeline has ceased to be a substantial unitholder of AmFIRST REIT.
AMCORP is the major shareholder of AMMB Holdings Berhad (“AMMB”) and Amcorp Properties Berhad (“AMPROP”), which in turn via Am ARA REIT Holdings Sdn. Bhd. (“REIT HOLDINGS”), are indirect shareholders of the REIT MANAGER, holding 70% and 30% equity interest respectively.
Jadeline Capital is 100% owned by ARA Asset Management Limited. This effectively marks the end of ARA's collaboration with AMFIRST, as they make preparations to list their own REIT.
Average price paid by Amcorp is RM 0.6918 per share, which is slightly higher than current market price RM0.68. Perhaps some support for the share price, in anticipation of the next Q results (in Feb)?
According my calc, if they can maintain the occupancy rate for this coming quarter and factoring in the 0.25% rate hike for their floating rate borrowings, can get 6.5%-7.0% div yield (after 10% withholding tax) at current 0.645 share price.
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....
Posted by Zea XG > 2016-09-29 16:46 | Report Abuse
someone sapu-ing all the shares... I wonder what news it will be this time.