There is a withholding tax taken away automatically from your dividend received, which you can claim back later from the tax office. Dividend given by REITs has two parts: taxable and non-taxable one, the taxed portion is only at the second one.
useless enterancelah....bcs u take yr family meh...then how many enterance fee u have to pay....?unless u really enjoy those child play...then u can enter yrself and enjoy yr day lol.
Sunway Hotels & Resorts, the hospitality division of property-construction conglomerate Sunway Group, is slated to reopen its 4.5-star Sunway Pyramid Hotel (formerly known as Sunway Pyramid Hotel East) on Nov 3.
Sunway REIT - 1Q17 Within Expectations Author: kiasutrader | Publish date: Fri, 28 Oct 2016, 09:45 AM
1Q17 realised net income (RNI) of RM66.7m met both market and our expectations at 24%. 1Q17 GDPU of 2.27 sen is also within expectations. We make no changes to FY17-18E numbers. Maintain OUTPERFORM with an unchanged TP of RM1.85, based on FY17-18E average GDPS of 10.6 sen (NDPS: 9.5 sen) and a +2.10 ppt spread to the 10-year MGS of 3.60%.
1Q17 realised net income (RNI) of RM66.7m came within expectations, making up 24% of consensus and our estimates. 1Q17 GDPU of 2.27 sen included a non-taxable portion of 0.44 sen and came in within our expectation at 22% of FY17E GDPU (5.8% yield).
Results highlight. YoY-Ytd, GRI was up by 6% driven by the retail segment (+14.5%) from Sunway Putra Mall, Sunway Pyramid, and Sunway Carnival. Meanwhile, the hospitality (-20.4%) and office segment (-10.8%) weighed down on top line growth due to the closure of Sunway Pyramid Hotel (previously known as Sunway Pyramid Hotel East) for refurbishment in 4Q16, and lower occupancy at Sunway Tower and Sunway Putra Tower. Although NPI margins were flattish, RNI margins improved (by +1.8ppt) as 1Q17 pretax income was inclusive of an unrealised fair value loss on interest rate swap amounting to RM2.6m vs. 1Q16 fair value gain on interest rate swap of RM3.9m, resulting in RNI increasing by 10%. QoQ, GRI was up by 4% mainly due to the retail (+3.3%) and hospitality segment (+16.0%), while the office segment declined by 1.6%. This coupled with stronger NPI margins (+1.58ppt) and after adding back the fair value loss on interest rate swap amounting to RM2.6m, increased RNI by 10%. (refer overleaf)
Outlook. Management is targeting to spend c.RM100m on capex in FY17 mainly for the refurbishment of Sunway Pyramid Hotel East (previously Sunway Pyramid Hotel East & Pyramid Tower Hotel), which we have accounted for in our estimates. In terms of leases up for expiry, FY17 has 22.0% of NLA up for expiry and it is a major rental reversion year for Sunway Pyramid (54%) and Sunway Carnival (72.0%) of which we expect mid-to-high single-digit reversions, while FY18E will only see 12.8% leases up for expiry. Note that we make no changes to our FY17-18E numbers.
Maintain OUTPERFORM and TP of RM1.85. We maintain our call and TP of RM1.85, based on FY17-18E average target gross yield of 5.70% (net: 5.10%), on an unchanged +2.1 ppt spread to the 10-year MGS of 3.60% on average FY17-18E GDPS of 10.6 sen (NDPS: 9.5 sen). We maintain our OUTPERFORM call for its income contribution from SPP and visible acquisition pipeline, thanks to its parent, SUNWAY.
Risks to our call includes: (i) bond yield expansion, (ii) earnings risks in hospitality and office division, and (iii) lower-than-expected contribution from SPP.
Brokerage fee for REITs is the same like normal stocks or cheaper for REIT? Pls help. Am considering whether it is worth to buy for the income.distribution next month.
Buying Reit is exactly the same as buying other company shares. Brokerage fee is the same and depends on which brokerage film you are using. The income distribution next month is RM 0.02087. If ideal case, the income distribution remains the same as the coming one for the next 3 quarters, which mean you will get RM 0.02087 *4 = RM 0.08348 for full year.
RM 0.08348 / Current share price RM1.78 = 4.69% pa.
So your interest is around 4.69% which is still slightly above FD interest rate. If you ask me is it worth to buy now, I will say no. The current price is near to all time highest. Ofcourse it might go higher, but the downside risk also higher. Anyway, it's still your decision to buy or not.
Some REITs are better than others. At the moment, some are willing to pay a premium even as yields drop down below 5%.
A few reasons: 1. BNM rate: 3%, down from 3.25% this year. Some analysts predict a further easing to 2.75% in the run-up to the next General Election. Which will make REITs even more attractive. 2. Generally, KLSE stocks are seeing a dip in %DY & possibly future earnings. 3. SUNREIT could see possible asset injections in the near future, most likely Sunway Velocity Mall, which has already gotten around 80-90% leased out even before the grand opening. I predict this injection will only take place after the MRT stations are operational (mid 2017?). 4. Possible SC revamp in the REIT guidelines to allow property development activities.
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....
Beza
1,847 posts
Posted by Beza > 2016-08-23 14:34 | Report Abuse
You are welcome. It will continue to fly.