AMANAHRAYA REITS
KLSE (MYR): ARREIT (5127)
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Last Price
0.31
Today's Change
-0.005 (1.59%)
Day's Change
0.31 - 0.31
Trading Volume
31,000
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1 person likes this. Showing 50 of 381 comments
It's always been 10% deducted bro, maybe you just didn't notice last time
2021-04-16 17:06
about 9% of the total asset will expire in less than 2 years (Segi College Subang, South City Plaza, Contraves, Toshiba), and about 1/3 (the above + Holiday Villa, Segi KD, Wsima Comcorp, RHF Stone) will expire in less than 9 years. Good to continue to collect?
2021-05-13 10:27
from the last Q results, it seems to me ARREIT has a solid fundamentals, undervalued even when consider all known "troubles" and risk factors, expecting DPS21 to be in the range 5-5.5sen, very good div yield, potential price upside too
2021-05-29 11:04
see my blog for details: https://klse.i3investor.com/blogs/milosh/2021-06-07-story-h1566100953-ARREIT_5127_AMANAHRAYA_REAL_ESTATE_INVESTMENT_FUND.jsp
2021-06-07 12:05
very good dividend 2.81 sen for half a year.. that is more than 12 months FD income. well said @Milosh.
2021-08-24 08:48
arreit undervalued, good investment with a good margin of safety, I maintain my optimistic stance going fw
2021-08-24 10:56
Good Q for ARREIT. An EPS of 1.71 cents is quite reassuring. Hope the BOD goes back to redistributing income every quarter, as was the practice before the pandemic.
2021-11-30 11:05
Reit is for 10 years term investment once you inject money , it wont give u big capital gain , u can only collect div slowly !
2022-07-01 22:11
@Yippy68, Hi Yippy, dividend 1.6449, so quartely is 0.82245? Am i right? If yes, very tiny "distribution"..
2022-08-27 22:31
Right now, market seems worried about upcoming Sep report, someone already knew the results and dumping. Quite a few concerns with this counter: 1. Further decline in revenues (risky)? 2. Rising interest rates causing higher interest payment? 3. As it is, YTD Jun report showed Operating Cashflows not quite meet Dividends and Interest payments. So, if YTD Sep report shows lower revenues, then, more likely next year's Dividends may be lower than 2022. 4. Asset revaluation risks? (good buffer on paper, but unknown).
2022-10-09 11:22
It's main property is Vista Tower office building, recently revalued to RM523m, worth 37% of its REIT assets. The gross rental income (before expenses, before interest) have gone down a lot from 40m, 33m, 27m (2019-2021), with around 53% (?) occupancy in highly competitive KL office space where average occupancy is higher than 53%. The big question mark is can its gross rental income rise back to pre-pandemic levels and how many years will that take (if it can)? Or have we gone to a new norm. Management needs to be ruthless - the main drag is RM650m plus borrowings with large Financing costs. Having huge asset values at surplus is meaningless if rental income doesn't come in but having to keep paying interest on loans. It needs to sell some buildings to realize its values, pay off the loans and suddenly, this will unlock a lot of monies and this stock price can then rise again. The question is - can management realize the market values at a sale around this time? Or are the "market values" noted in the books not real today but assumes reversion? Hence the huge discount to Net Asset Values. For minor properties like the Alor Setar ex-Holiday Villa that is only worth RM26m and zero occupancy, better to just sell that off - even if collect less than 26m, at least the occupancy rates for the whole REIT looks better on paper. I suspect the reason they are not selling is because they might not even get 20m and if true, then, that would set a bad precedence for the rest of the properties in their books that needs to be marked down.
2022-10-09 13:00
A distressed investor, banking on future recoveries, have to be very patient (many years), willing to accept continued dividend cuts. As to when a catalyst can occur to cause a re-rating, this is hard to see. I would like to see stronger management decisions, e.g. sell some properties to reduce borrowings then this cash will propel the stock price but question is - when is management going to do this and can they realize their worse properties? Who is going to buy at this market?
2022-10-09 13:06
3 months later, more bad quarterly report. More sell off ... now 48 sen.
What will the key Q2/2023 report show in August? Income distribution time then ... will ARREIT cut dividends some more in view of poor results?
2023-06-09 22:05
hopefully selling the hospitality wing will yield better dividend payout... maybe special dividend
2024-01-05 09:36
I first took a position in ARREIT back in 2011. Between then and 2020, I continued adding more shares until, at one point, ARREIT comprised around 10% of my entire portfolio. However, sometime in mid-2023, I concluded that something was seriously amiss at this REIT. I wish I had realized it sooner. I guess I was too enamoured with the company to accept reality. (See my post above from Nov-21.) Nonetheless, I offloaded the bulk of my shares at around RM0.51, keeping a few thousand shares as keepsakes.
Having read their 2023 Annual Report again, I couldn't see how the management could turn the Trust around. Their big strategy is to exit hospitality completely and focus on education and healthcare.
Long-time unit holders know that the ex-Holiday Villa Alor Star has been vacant since 2018! Instead of selling it first, ARREIT sold the 100% occupied Holiday Villa Langkawi — supposedly because of the 'new strategic focus'! Fine.
Besides the Holiday Villa Alor Star, the former Toshiba TEC building has also been vacant for over two years. There is hardly any discussion about what the management plans to do with this building.
However, these properties aren't the biggest problem in ARREIT's portfolio. The biggest issue is the very place the Trust is occupying—namely, Vista Tower, which makes up 38% of ARREIT's asset value. When the property was purchased in 2018, it had an occupancy rate of 70%. Since then, the rate has only declined every year, reaching its current 35% occupancy rate. I really hope the management does something drastic about this property soon.
Overall, the asset-weighted occupancy rate of ARREIT has declined by 18.9% between 2018 and 2013, from 84.3% to 65.3%. This is an issue that must be addressed.
Anyway, I will no longer be a unit holder moving forward and wish the management success in turning around this once promising REIT.
2 months ago
Note:
A very bad Bumiputras managed REITS. Markets price drop terribly from 60sen+ to 30sen+ within one year. They sold/ going to sell the good asset e.g. Holiday Villa Langkawi, Contraves which enjoy 100% occupancy. The latest Q EPS dropped to 0.35sen from 0.58sen, main due to the discontinued income from HV Langkawi.
Don't expect improvement within short period, especially another valuable asset, Contraves, is going to be sold.
1 month ago
1.20sen income distribution represents 3.5% (over market price 34sen) which is also worse than another bumiputras managed reits, AmFirst, which gave 2.0sen, translated to 6.25% return (over the market price 32sen).
1 month ago
NTA is RM1.26, whereas share price is only RM0.30. This REIT is extremely undervalued
5 days ago
ARREIT price has now reached its lowest point. Collect before good QR is announced
5 days ago
I estimate that the counter will generate over RM40mil in PAT due to the disposal gain
4 days ago
EPS is 0.34 sen and ROE is 27%. The fundamental of this Amanahraya Reits is solid
3 days ago
Management expects better financial performance for ARREIT this financial year. One word, BUY !
3 days ago
@adheree. Hard for me to predict the next price movement, but I can estimate that ARREIT will record more than RM30 million in net profit in q2
15 hours ago
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traintobullland
taxable income need to deduct 10%
2021-04-15 19:59