Let’s compare Sentral REIT’s dividend yield to other Malaysian REITs. 🏢🇲🇾
Sentral REIT: The current dividend yield for Sentral REIT is approximately 8.74%1. Now, let’s take a look at the dividend yields of some other notable Malaysian REITs:
Axis REIT: Offers a dividend yield of 5.45% Sunway REIT: Provides a dividend yield of 5.95% IGB REIT: Has a dividend yield of 5.77% Pavilion REIT: Yields approximately 7.09% KLCC Property Holdings: Offers a dividend yield of 5.42%
REIT (Real Estate Investment Trust) stocks can benefit from falling interest rates.
Interest Rate Sensitivity:
REITs are known for their income-generating properties, such as commercial real estate, apartments, and shopping centers. When interest rates decline, the cost of borrowing for REITs decreases. This leads to lower financing costs for property acquisitions and development. As a result, REITs can potentially enjoy higher net operating income (NOI) due to reduced interest expenses. Dividend Yields:
REITs are required by law to distribute a significant portion of their income to shareholders as dividends. Falling interest rates make the dividend yields offered by REITs more attractive relative to other income-generating investments. Investors seeking stable income often turn to REITs during periods of declining rates. Property Valuations:
Lower interest rates can lead to higher property valuations. As rates fall, the discount rate used to calculate the present value of future cash flows from real estate assets decreases. This results in higher property prices, benefiting existing REIT holdings. Refinancing Opportunities:
REITs often have existing debt on their properties. When rates decline, REITs can refinance their debt at lower interest rates, reducing their overall interest expense. This positively impacts their cash flow and profitability.
Acquisition of Menara CelcomDigi is mega bearish. The company is holding the bag on many commercial real estate with very low occupancy rate. This is not enough to offset the company's loads of debt and poor cash position. RHB analyst is WRONG
Price target based on DCF basis should be around ~ RM0.68. This is not looking good for the future outlook of the company. More downward revision of EPS to come for at least the next 3 quarters
@Kenokaya it is correct.. it is topping up the distribution given in advance in November last year, of which the total is 3.49 sen, higher than the distribution of the first half of 2023 at 3.19 sen
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....
leekokwan
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Posted by leekokwan > 2023-12-04 14:53 | Report Abuse
Anyone got receive e-wallet door gift for attending EGM on 15 November 2023?