Posted by xcuteboy > 2018-01-19 14:21 | Report Abuse

Revaluation loss of RM18.18 million from investment properties

Posted by Intelinvestor13 > 2018-01-19 15:20 | Report Abuse

Kuala Lumpur, 19 January 2018: MRCB Quill Management Sdn Bhd (“MQM”), the manager of MRCB-Quill REIT (“MQReit”), a listed real estate investment trust, wishes to announce that MQReit achieved a realised net income of RM21.42 million for the fourth quarter of 2017 (“4Q 2017”). This is an increase of approximately 61.0% from the realised net income of RM13.30 million recorded for the fourth quarter of 2016 (“4Q 2016”). The higher realized net income for this quarter was attributable to the recognition of income from Menara Shell, net of higher property operating expenses, finance costs, trustee’s fee and manager's fee. For the full year, MQREIT achieved a realised net income of RM88.01million, an increase of 48.8% compared to the realised net income of RM59.16 million recorded for the financial year ended 31 December 2016 (“FY 2016”). Correspondingly, realised earnings per unit (“EPU”) for financial year ended 31 December 2017 (“FY 2017”) of 8.24 sen was recorded.

After taking into consideration the non-cash adjustment for manager’s fee payable in units and net fair value loss on investment properties, MQREIT achieved a distributable income for FY 2017 of RM92.4 million. (“Distributable Income”).

FY 2017 distribution per unit (“DPU”) was 8.39 sen, which is 0.1% higher compared to the FY 2016 DPU of 8.38 sen. The FY 2017 DPU of 8.39 sen translates to a distribution yield of 6.7% based on the closing price of RM1.25 per unit as at 29 December 2017.

FY 2017 DPU of 8.39 sen consist of an interim distribution of 4.23 sen which was paid to MQREIT unitholders on 18 September 2017 and the proposed final distribution of 4.16 sen for the sixmonth period ended 31 December 2017. The proposed final distribution of 4.16 sen is expected to be paid on Wednesday, 28 February 2018.

Posted by chang24 > 2018-01-19 15:23 | Report Abuse

Yeah finally...

Posted by ks55 > 2018-01-19 19:36 | Report Abuse

MQ Reits Managers cheat.
Why EPU decreased?
Why Platinum Sentral registered revaluation losses up to 25m?

Answers:

1. Platinum Sentral simply overvalued when it first injected into QC Reits. Rental not commensurate with amount paid. Have to write down even more for coming 3 years to reflect market value.

2. Menara Shell will have to write down in 2 years time to reflect market value.
Again MRCB simply injected over-inflated assets into MQ Reits.

3. Further issuance of units to vendors and Managers diluted EPU.

4. Rental and occupancy can only go south in coming years due to oversupply of office space.


Recommendation:

Forget about the income distribution.
MQ Reits is going to laosai after ex-date.

Posted by ks55 > 2018-01-19 19:36 | Report Abuse

Better buy for Reits at present is Atrium.
Why?

Posted by ks55 > 2018-01-19 19:46 | Report Abuse

As an indication you should dispose MQ Reits before ex-date, just look at EPF trading in the counter.
Bearing in mind EPF is the main beneficiary when MRCB sold Platinum Sentral and Menara Shell.
EPF is still major and substantial share holders of MRCB.......

Posted by Alexander Lim > 2018-01-19 19:53 | Report Abuse

The EPS decreased is due to the paper loss of the reevaluation of investment property. As long as the occupancy of the properties remain strong at average 90% and above with positive cash flow generation, we will be guaranteed the dividends. The drop of DPU is probably due to the excess dilution due to the private placement previously. Although the injection of Menara Shell into the REIT has increased earnings and cash flow, it wasn't enough to increase the DPU significantly.
With interest coverage of 3.7x, only IGBREIT and SUNREIT has higher interest coverage >3.7x. And they have most of their loan on fixed rate. If management can keep its Gearing low and manage effectively, this REIT can be a long term investment.

Posted by Alexander Lim > 2018-01-19 19:57 | Report Abuse

REITs should be looked as a long term investment, not short term as they distribute at least 90% of their earnings as dividends, there won't be much increase in their NAVPS.

Posted by sg999 > 2018-01-19 22:34 | Report Abuse

Will be gap down on monday? 1.0hahaah

Posted by Intelinvestor13 > 2018-01-19 23:19 | Report Abuse

Reit is for long term la. MQreit average occupancy rate is as high as 96%, give more than 6% of dividend p.a., more than 60% value of its asset sit in KL sentral area, most strategic transport hub of KL... it's something u hold n top up bit by bit for 5-10 years or more n enjoy d income distribution in d long run... MQreit is one of the top three Reits I will continue to invest in for years to come

Posted by xcuteboy > 2018-01-20 08:30 | Report Abuse

Nth to worry la. Wont drop so much...this juz over value but the earning still there

Posted by hng33 > 2018-01-23 12:06 | Report Abuse

sold off all MQcapital at 1.25, lock handsome paper profit, free up all capital

Posted by cn21 > 2018-02-05 16:01 | Report Abuse

Anyone can advise on MQREIT gearing?? Thanks

Posted by Intelinvestor13 > 2018-02-06 10:02 | Report Abuse

At 1.15, dividend is around 7.3% ... time to top up more

Posted by ks55 > 2018-02-06 10:24 | Report Abuse

MQ Reits has been used as cash cow for MRCB.
Sooner or later, you will see MRCB injects all its KL Sentral properties into MQ Reits at grossly over-inflated price, hence passing the financial burden from MRCB to MQ Reits unit holders.
If you don't like to be paymaster for some over-inflated properties, vote with your legs.

Posted by Jia Cheng > 2018-02-23 10:42 | Report Abuse

0 volume today

Posted by Happykoo > 2018-02-26 21:40 | Report Abuse

lowest day by day.....why?something happen?invest in reit become unstable already...

Posted by Patrick Ling > 2018-02-27 17:31 | Report Abuse

Gross dividend yield 7.4%. How low can it go?

Posted by AK2899 > 2018-02-28 21:39 | Report Abuse

if can drop until 0.50 i lagi happy !

Posted by NicholasNWH90 > 2018-03-01 15:48 | Report Abuse

Weird. Price drops from 1.12 to 1.11 with 95% buy rate. Big shareholders changing hand?

Posted by Jia Cheng > 2018-03-01 18:40 | Report Abuse

shit... my avg buy 1.19

Posted by Happykoo > 2018-03-01 23:01 | Report Abuse

mine average price rm 1.25.....is time to top up?any advice!!

Posted by cn21 > 2018-03-01 23:08 | Report Abuse

Anyone can advise on MQREIT gearing?? Thanks

approx 36% if not mistaken. i saw somewhere but cant remember exactly...

Posted by KLCI King > 2018-03-01 23:12 | Report Abuse

Why don't you just read the quarterly report & find out yourself, that should be the way of investing, rather than asking here & there, then later blaming here & there.

Make yourself responsible for your own money, not others.

Posted by cn21 > Mar 1, 2018 11:08 PM | Report Abuse
Anyone can advise on MQREIT gearing?? Thanks

approx 36% if not mistaken. i saw somewhere but cant remember exactly...

Posted by Intelinvestor13 > 2018-03-02 11:47 | Report Abuse

I bought several times at 1.25 - 1.22 - 1.16 - 1.12 and now 1.10.. At current price, dividend payout is around 7.7% p.a. you don't have to go all in for REIT, just top up bit by bit and stay long enough to reap the sow twice a year from dividend payouts. The share price may continue to stay low for a while due to market sentiment but as long as the properties are still standing and collecting good rentals from healthy businesses, investors shouldn't be overly concerned with daily fluctuation of share price.

Posted by xcuteboy > 2018-03-06 15:03 | Report Abuse

y keep dropping?

Posted by Happykoo > 2018-03-06 16:09 | Report Abuse

why drop every day...??bulk of tenant wont resume ?any insider news ?

Posted by Intelinvestor13 > 2018-03-06 16:15 | Report Abuse

yesAH ...with expectations of higher interest rates, is it good for REIT?

On average, it would be safe to assume that interest rate increases are likely to be met by REIT price declines. Of course, reaction by sectors will vary. For example, some argue that in the case of residential and office REITs rising interest rates would drive up REIT prices because increasing rates correspond to economic growth and more demand. But you will need to be selective in such an environment. The good news about REITs is that high yields are a sort of hedge against price declines: if you buy a high-yield REIT, any price decline will be mitigated by high income in the meantime.

Read more: The Impact Of Interest Rates On Real Estate Investment Trusts https://www.investopedia.com/articles/04/110304.asp#ixzz58xDethNf
Follow us: Investopedia on Facebook

Currently 76% of MQREIT’s total borrowings are on fixed interest rate, thus to a large extent cushioning the Fund from any potential rise in interest rates in this volatile market environment.

Posted by xcuteboy > 2018-03-06 16:22 | Report Abuse

fainted to see the price drop everyday... I tot reits is quite stable on the price... but recently the rule seen like change d...

Posted by Intelinvestor13 > 2018-03-06 16:34 | Report Abuse

Don worry.. market overreact only.. Invest in REITS = buy properties and collect rentals. Share price drop = buy properties at cheaper price and collect rental at higher %.. A lot of REITS (Axis, IGB, Sunreit etc) are very cheap now.. keep some cash and be ready to go in again

Posted by Kalaihselvan Krishnan > 2018-03-06 17:17 | Report Abuse

Currently yield is higher than 8 percent.
Buy and collect yearly dividend. Good for retirement

Posted by NicholasNWH90 > 2018-03-07 09:45 | Report Abuse

This reit is good based on past performance. But the price drop is quite substantial without specific reason. Any insider news?

Posted by ejtic > 2018-03-07 12:50 | Report Abuse

Now at RM1.05 with 8.38 cents dividend, net dividend yield is 7.12%

Posted by Patrick Ling > 2018-03-07 13:43 | Report Abuse

Irrationality of Mr Market

Posted by Intelinvestor13 > 2018-03-07 16:50 | Report Abuse

panic sell for no reason.. going to collect some more to average down.. dividend payout is > 8% at this price

Posted by ejtic > 2018-03-07 17:50 | Report Abuse

Just bought 1.02. Will collect more tomorrow

Posted by Intelinvestor13 > 2018-03-07 18:40 | Report Abuse

http://www.theedgemarkets.com/article/bank-negara-malaysias-early-move-eases-pressure-hike-again
BNM maintains interest at 3.25%.. don be a fearmonger la

Posted by Administrator > 2018-03-07 22:13 | Report Abuse

get my fund ready for this

Posted by CWallUK > 2018-03-09 03:57 | Report Abuse

I paid around 1.29 last year. I know the price has fallen but the dividend will still be paid and over time should increase. Now yielding around 8%! ... it would be almost impossible to achieve this
return if you were to buy commercial / residential property anywhere. If I had any spare funds I would be buying.

Posted by Kalaihselvan Krishnan > 2018-03-09 18:07 | Report Abuse

I think cheap sale is over

Posted by painter > 2018-03-09 21:33 | Report Abuse

I think it is a good idea to collect it at below 1.00 price.

Posted by painter > 2018-03-09 21:34 | Report Abuse

Historical low was 80sen.

Posted by Intelinvestor13 > 2018-03-21 11:19 | Report Abuse

http://www.theborneopost.com/2018/03/21/price-drop-of-malaysian-reits-shares-unwarranted-analysts/
“This comes as most MREITs have over 70 per cent of their borrowings on fixed rates
“And in any case, a 50bps hike to Pavilion REIT, MQREIT, and Axis REIT would only lower earnings by one to two per cent, which is minimal,” said the research arm.

http://www.theedgemarkets.com/article/new-property-development-ruling-could-benefit-selected-reits
We are mildly positive on the revised Guidelines on Real Estate Investment Trusts (REITs) which allow property development for Malaysian REITs (M-REITs), among other changes/additions. This new property development ruling is within our expectations and it could benefit selected M-REITs. We remain “neutral” on the sector and our selective buys are IGBREIT, SunREIT, CMMT, YTLREIT and MQREIT.

http://www.theedgemarkets.com/article/are-reits-good-buy-now
Kenanga Research has chosen MRCB-Quill REIT as its preferred “long-term pick” with a target price of RM1.30, given its stable asset profile and attractive dividend of about 7.9% currently.

Posted by PenguinDad > 2018-03-25 09:38 | Report Abuse

wait for new low. dji is bearish n possible hike of interest...

Posted by painter > 2018-03-29 00:28 | Report Abuse

DJI correction not over yet, interest rate hike still in the book.

Posted by NicholasNWH90 > 2018-04-03 12:28 | Report Abuse

Analysts already predicted one more rate hike in last quarter of the year. My concern is more on the rental renewal rate of MQReits. The drop is too substantial with low volume. Someone is desperate to sell while few people in the market are fetching the stocks.

Posted by Lim Tek Wai > 2018-04-03 15:37 | Report Abuse

Should buy more?

Posted by mhling > 2018-04-03 15:52 | Report Abuse

Why not?

Posted by Jia Cheng > 2018-04-03 17:48 | Report Abuse

feel like crisis soon

Posted by dukulangsat > 2018-04-03 18:06 | Report Abuse

anyone going to the AGM next week?