Sunway Pyramid Is the Crown Jewel of Sunway REIT. Agree, the population catchment is very large due to its proximity with sunway, subang, puchong and pj (may be one quarter of KV populations).
-Net property income yield lower than the borrowing cost According to the 2020 annual report, Sunreit’s debt borrowing cost was 3.66%, but the net property yield of many of its properties is less than 3.66%, for example: 1)Sunway Putra Mall 3.3% 2)Sunway Resort Hotel 3.5% 3)Sunway Putra Hotel 2.5% 4)Sunway Hotel Georgetown 3.1% 5)Sunway Tower 0.2% It is not because of COVID-19 if we zoom into FY2019, Sunreit’s debt borrowing cost was 4.02%, and the above Properties (except Sunway Hotel Georgetown) recorded a net property income yield below 4.02%
"It is not because of COVID-19 if we zoom into FY2019, Sunreit’s debt borrowing cost was 4.02%, and the above Properties (except Sunway Hotel Georgetown) recorded a net property income yield below 4.02%"
----- of course it is because of the covid-19 the net property income yield fell.
Last year the dividend paid in December was 2.56 cents (after tax) or RM 2,560.00 per 100,000 shares. This year, its just announced the Divident to be paid in November as .0797 cents (after tax) or RM 797.00 per 100,000 shares. The Dividend Yeild on this stock has been gutted.
Not really.. this time private placement is mainly utilized for acquiring Sunway Pinnacle, which is a high yielding asset of around 8%. So the return will be good in the long run.
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sianglong91
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Posted by sianglong91 > 2020-08-18 22:24 | Report Abuse
Hmmm, still looks like a little overvalued for the stock price to collect. Gotta wait until 1.54 (previous valuation)