Posted by MirageHotelPD > 2016-03-02 18:33 | Report Abuse

Asia88, last year MQreit total paid out about RM0.086. The REIT occupancy rate is almost 100% with only about 6% subject to renew tenancy and 7% next year. Current NTA more than RM1.3. RM1.12 is about 15% discount for property with more than 7% after tax return. If nothing major happen, this REIT will carry on giving good return. Unless you have other investments that give you better return and reasonably secure income

Posted by Angielim9955 > 2016-03-02 22:23 | Report Abuse

MirageHotelPD , ok I understand , I will hold . thnaks
But really scare lol.
New report show Net Loss
-632 -1,290
-0.10

earning per share also negative .
all in red colour , but you claim assets improve but no profit how to survive ?

Posted by Asia88 > 2016-03-02 22:40 | Report Abuse

@Angielim you have to take away the unrealised loss and determine whether it is profit or loss. Let me say it in another way. If all in red colour but why they still can give dividend every quarter? Does it give better understanding? You may sell it if their distribution goes down.

Posted by MirageHotelPD > 2016-03-02 23:32 | Report Abuse

Angielim9955, maybe you still don't catch the picture. Eg, if you own a 1 million warehouse (which heavy duty racking cost 300K and shop purchase at 700K). You rent it out for 7% per annum which is RM70k. For tax and accounting purpose, the depreciation period for racking is 5 years which is 60K a year. Shop depreciation is 2% a year or 14K. let assume no other cost involve. You will make 70K-60K-14K = -4K. a net loss of 4K after depreciation. Now check your Bank, do you 70k from rental ? for the losses, do you take out 74K or is just a book lose? Definitely you have 70K in bank and do not need to take out 74K for depreciation. So, if this is a REIT, minimum 90% of this 70K have to distribute out to shareholders. But nothing need to pay for depreciation loss and the company will still have positive cash flow. After 10 years, if you revalue the shop again, very likely the shop will appreciate instead of lower value. Then, this will adjust as revaluation profit and will show high profit in account, but again no money involve and cannot distribute out for this of paper gain. Hope is clear...

Posted by wisdomtot > 2016-03-03 00:07 | Report Abuse

Well explained MirageHotelPD. You are definitely one of the REIT experts around here, and certainly a generous person, especially with your knowledge sharing.

Posted by invest_101 > 2016-03-03 00:22 | Report Abuse

Reits are reliable income generating assets as correctly pointed out by contributors above. Net cash income is very different from accounting profits and in case of reits, the properties portfolio of each reit have to be revalued at regular intervals as investments properties are not subjected to depreciation. This will be the main cause of the losses of ytlreit. Just be mindful that office reits in particular may be a bit dicey due to the sharp contraction in the oil and gas sectors and these companies do make up a substantial portion of the premium end market.

Posted by MirageHotelPD > 2016-03-03 16:12 | Report Abuse

As reit income is mainly from renting properties. The main criteria to consider investing in Reit is whether the rental is sustainable. The market price will depends on DPU and also DPU growth. Normally investors will pay lower price for low DPU growth reit. At current headwind market condition, carefully choose good REIT may give you a surprise return since most investors are exiting from share market. One good e.g. is SUNTEC REIT singapore, Price was SGD 1.95 mid last year drops to SGD1.5 in January. But DPU continues to increase by 10% each quarter. Last quarter paid out SGD0.0275 which is equivalent to 7.3% at SGD 1.51. After the last quarter paid, the REIT rally till today at high of SGD1.69.

Posted by Angielim9955 > 2016-03-03 20:10 | Report Abuse

MirageHotelPD : thanks , very clear , I will buy in more reit counter , My next target is AXreit .
Thanks MirageHotelPD you sharing is very helpful .
Thanks

Posted by MirageHotelPD > 2016-03-03 23:26 | Report Abuse

AX REIT. Never follow, can't comment. As invest_101 reminded. Just becareful of Oil crisis. If the rental sustainable, then will be good

Posted by Angielim9955 > 2016-03-04 01:14 | Report Abuse

ok i will careful
thanks

Posted by shortinvestor77 > 2016-03-05 21:11 | Report Abuse

Good to see 1.13. Can up further.

Posted by supermix2 > 2016-03-05 21:51 | Report Abuse

Posted by shortinvestor77 > Mar 5, 2016 09:11 PM | Report Abuse

Good to see 1.13. Can up further.


Hope it can go up to 1.20 cents, the least.

Posted by angiechai > 2016-03-07 16:51 | Report Abuse

MirageHotel, you r indeed very kind in all your explanations, unfortunately, I had to sell all my MQReits....

Posted by supermix2 > 2016-03-07 17:22 | Report Abuse

Price getting better & better & let's hope that it will top at RM1.20++

Posted by MirageHotelPD > 2016-03-08 01:03 | Report Abuse

Well angiechai, everyone have different priority. By the way, in neat future if you decide to invest something 'save' and If the Mqreit price still remain 'low'. It is one of the good REIT to consider, since most of the tenancy agreements are beyond 2020. Which is good for current headwind economy

Posted by supermix2 > 2016-03-08 17:39 | Report Abuse

Good show today, more to come perhaps.

Posted by kymlym > 2016-03-09 15:56 | Report Abuse

Comparing between MQREIT, PavReit and SunReit, which would be a better bet?

Posted by supermix2 > 2016-03-10 01:37 | Report Abuse

kymlym Comparing between MQREIT, PavReit and SunReit, which would be a better bet?
09/03/2016 15:56


off course it's MQReit where income is concern.

Posted by youngblood29us > 2016-03-10 11:24 | Report Abuse

mqreit has the edge because of its assets and the location..Sun and Pavillion are relying heavily on Sunway Pyramid and Pavillion Mall..but pls take note of MQ's gearing, one of the highest..

Posted by kymlym > 2016-03-10 14:48 | Report Abuse

Yes, I noticed MQReit has better dividends recently.

Posted by Beza > 2016-03-10 15:22 | Report Abuse

All Reits gearing ratios are controlled by Bursa. They are not allowed to have more than 0.5 gearing ratio. No worry.

Posted by supermix2 > 2016-03-10 17:33 | Report Abuse

today boh lat.

Posted by youngblood29us > 2016-03-10 19:00 | Report Abuse

Beza - im well aware of that..most companies would stay below 0.4...when ur above 0.4, means the company is aggressive and that's why they can afford to pay 7%..even too conservative is not good..so take the middle path..

Posted by shortinvestor77 > 2016-03-10 20:13 | Report Abuse

Noted. Tq.Next to swallow Shell Tower.

Posted by supermix2 > 2016-03-12 04:14 | Report Abuse

shortinvestor77 Noted. Tq.Next to swallow Shell Tower.
10/03/2016 20:13


Brother, this counter is worthwhile to keep as I had been holding it for more than 5 years and it had serve me well indeed....no complains.

Posted by shortinvestor77 > 2016-03-12 20:35 | Report Abuse

I have 90000 units, supermix.

Posted by supermix2 > 2016-03-12 21:38 | Report Abuse

Posted by shortinvestor77 > Mar 12, 2016 08:35 PM | Report Abuse

I have 90000 units, supermix.



Well done brother, you make a very good choice & a very good investment & not to undertake unnecessary risk.

Posted by Beza > 2016-03-14 10:03 | Report Abuse

Yes. Tq.

Posted by supermix2 > 2016-03-14 23:18 | Report Abuse

Still good & strong as a rock.

Posted by supermix2 > 2016-03-17 02:27 | Report Abuse

today boh lat, hope it gets better.

Posted by supermix2 > 2016-03-18 13:16 | Report Abuse

still stable & remain unchanged, no buyers to support higher?

Posted by Beza > 2016-03-18 16:28 | Report Abuse

Supermix, you buy 100 units at 1.15. Then it will go up. That's how you can help each time.

Posted by Angielim9955 > 2016-03-27 03:11 | Report Abuse

Miragehotelpd . Hi mirage. Angielim again. Are you still here. Because I find out something weird.
Today I compare all my reit counters and I find out one reit counter very different from normal reit counters :
arreit(AMANAHRAYA REITS), after I checked , I find out
Arreit Par Value is 0 and Net profit also 0,only Revenue and profit before tax got figures and dividend quite high .
I just don't understand why net profit and par value is 0 for arreit ?

Posted by miragehotelpd > 2016-03-28 15:18 | Report Abuse

Angielim, Arreit last quarter profit reported as RM33,426,000 or 5.83 sen per unit. Distribution of REIT does not depends on P&L but cash flow(you can they distribute only 1.6+ sen when their profit is 5.83, the extra should be unrealise profit not in cash). For normal Share, Share capital is define as total shares x Par Value where the capital cannot reduce without the approval from authorities. The normal share can accumulate profit and any new issue of shares have to pay at Par value where the extra will be consider as Premium. For REIT, The REIT is form by Unitholders Capital (RM 519M for ARReit) where technically the REIT not suppose to accumulate profit and have to distribute out to unitholders. Sometimes, the REIT may pay REIT manager salary in the form of new units resulting the total units increase but capital remain. The REIT have reduce the capital when the capital is not longer needed or excess after disposing a property. That's why they don't use Par Value.You can see all REIT don't state Par Value but only state Unitholders Capital. There is also no retain profit but only state undistributed distributable profit.

Posted by miragehotelpd > 2016-03-28 15:37 | Report Abuse

Angie, looks like you are quite interested in REIT. Is a good choice if you are not a professional investor. the ranking of Risk:Return according to professional view are Low risk-low risk and high risk - high return. 1) Cash 2)FD 3) Bonds 4) REIT 5) Direct invest in Assets 6) Shares 7) Financial Derivative. The first 3 looks safe( with low return), but most people forgotten the Cash is facing very high risk of depreciation (due to inflation). Cash can purchase less thing after years. So, REIT is really for not a professional investor like me. Take a look at Singapore REIT like Ascott, Voted best REIT 2015 by World Finance. Adjusted NTA 1.389, current price 1.065. past 2 years DPU 0.083(2014), 0.0799(2015), few world known analysts predict 0.089 DPU for this year. Last year highest price was 1.32. Is 23% discount now. Only risk is current high SGD exchange rate.

Posted by mesosluffy123 > 2016-03-29 13:50 | Report Abuse

Miragehotelpd, any idea about Teoseng capital ?

Posted by supermix2 > 2016-03-29 17:34 | Report Abuse

price getting better & better for my favourite counter.

Posted by shortinvestor77 > 2016-03-29 20:55 | Report Abuse

Soon 1.16.

Posted by Angielim9955 > 2016-03-29 21:25 | Report Abuse

miragehotelpd, thanks you very much , you always willing to share with us thanks.
actually currently I am aiming ytlland , because I find out ytlland ever year got profit and very cheap now the only weakness is never give dividend but profit is good .

Posted by miragehotelpd > 2016-03-31 10:19 | Report Abuse

I didn't follow TeoSeng Cap nor YTL land, can't comment. For long term, Suncon and WCT shall out perform. Main reason for investing in REIT not because it has the best return but it provide safe and reasonable good return especially when the bull already on the road for some time and looks tire. I doubt it can run for another 2 years. Hopefully the recent Foreign fund inversion can show me wrong.

Posted by 3311 > 2016-03-31 17:22 | Report Abuse

miragehotelpd,I'm interested to buy Singapore reit.it is worth to buy Singapore reit as broker fees will be very high?What are the Reit you recommend?

Posted by sunbird > 2016-04-01 14:33 | Report Abuse

Try Accordia golf trust, A japanese reit in singapore. Two payouts a year, first one next month. 8 cents+ a year, selling at about 60cents.

Posted by miragehotelpd > 2016-04-01 15:24 | Report Abuse

3311, if you purchase Spore shares from Malaysia. Is better to choose a Bank backing security firm as the exchange rate is one of the main cost. Some non bank backing broker can charge up to 2% (different between buy & sell) but some bank backing firm like CIMB security only charge about 0.58%. For eg, Today Buy SGD rate 2.8925 Sell SGD rate 2.8765. The commission is depends on Firm and offer from broker also. For CIMB, above RM100k purchase, Commission, Foreign Tax ........all total about 0.4%, less than that about 0.525%.

Looking at Singpaore offer tax free DPU compare to Malaysia withholding tax of 10%, long term still worth while.

Try to select REIT that can sustain during this head winds economy plus Real cheap REIT. One of my personal favorite is Ascott Residential REIT, Awarded Best Reit in Asia year 2015 by World Finance (check their company annual report). NTA 2015 SGD1.41, after private placement should be SGD 1.389. DPU 2014 SGD0.083, 2015 SGD0.0799. 2014 room occupancy rate of 79% and 80% for 2015, which is very good for hospitality REIT. 52 weeks high of SGD1.32 and lowest SGD1.05 on 16/3/16. Currently is SGD1.07 Which means is 23% discount for Asia top Residential REIT. Few analysts predict DPU for this year could increase to SGD 0.089 after Ascott acquire Sheraton with 5% below market price in USA.

Report out last week shows Singapore tourist arrival in Jan this increase by 5% and expect even better for February, which is another boost for Ascott. BBCC also has announced Ascott as their hospitality partner.

My info is just for sharing and could be wrong. Please consult or check thoroughly before you decide to invest.

Posted by sunbird > 2016-04-01 16:42 | Report Abuse

ascott in my portfolio as well. Safe hands. Sold out of their philippines asset in Manila at the right time but going into cebu.

Posted by iwant2bmillionaire > 2016-04-01 18:26 | Report Abuse

Looks like reit is making a come back. Congrats all making money.

Posted by 3311 > 2016-04-02 00:00 | Report Abuse

miragehotel, thanks for info. sharing.I will check with CIMB. As I would like to explore Singapore Reit investment to get better return in the long run.I'm more favour to shopping mall reit as I believe high occupancy rate is low risk investment for long term if net dividend yield 5% above.

Posted by miragehotelpd > 2016-04-03 00:17 | Report Abuse

3311, if you are looking for Singapore Shopping REIT, Suntec REIT is one of good permance Office and shopping REIT. NTA SGD 2.06, DPU about SGD0.10, Occupancy rate above 98% for both Retail and Office. Another 100% committed asset will be ready soon in Australia. 52 weeks high of SGD 1.95 and low of about SGD 1.5 before CNY this year. Now, about SGD 1.67. Yields almost 6% which is above your 5% expectation. Last month I disposed 2/3 of this REIT and convert to Ascott. Frankly speaking, I'm not sure Suntec or Ascott is better potential. Hopefully, I did a right move!

Posted by 3311 > 2016-04-04 23:36 | Report Abuse

mirage, thank for Suntec recommendation.

Posted by ThomasTrain > 2016-04-07 20:38 | Report Abuse

thanks a lot for the people who write with knowledge and not like some stocks writer, write rubbish , cheers!

Posted by miragehotelpd > 2016-04-07 23:43 | Report Abuse

Today Suntec REIT down to SGD1.64 (from 1.72 DPU SGD 0.10, NTA 2.06) and Ascott advanced to SGD1.105 (from 1.05 DPU 0.08, NTA 1.389). Investing in REIT is relatively simple, Sustainable rental, good rental growth with high DPU and undervalued unit price, in no time will to catch up... Just need to be patience.