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Why these MREITs should be in your portfolio or watch list as they are growing despite the many economic uncertainties locally and globally…

Update on IGBREIT, PAVREIT, SUNREIT and new REIT Guideline

Update so far….

UOA REIT sold WISMA UOA Pantai to CIMB

Updates so far: SUNREIT, PAVREIT, MQREIT

Updates so far: CMMT, YTLREIT, MQREIT, KLCCP, IGBREIT, KIPREIT, AXREIT

MREIT updates for Mar 2018 and also my comments on the recent sell-down in M-REITs.

(note: also check out the updated MREIT Tables updated for 2017)

I can calculate the motion of heavenly bodies, but not the madness of people ~ Issac Newton

Correction: this is what I meant in the video, by Newton, not Einsten 🙂

MREIT updates for Feb 2018 and also my comments on interest rate hike affecting MREITs.

I am cautious on Hektar REIT and ARREIT despite the positive developments. I believe the REIT managers are trying very hard not to let their REITs stay static but as an investor, we need to look at what others has to offer – better quality assets and less of a tenancy issues.

AmFIRST REIT goes way back but its attractiveness among M-REITS diminished as larger and sexier REITs come into the sector, overshadowing it.

Plus, it is still a major asset holder in office buildings, which is in over-supply.

And it’s ‘slow-moving’ in my opinion.

I’d adopt a wait and see stance still.

You know that having new asset acquisitions in the pipeline is a life line for REITs.

That is the #1 way a REIT can grow fast, becomes more valuable (intrinsic value) and ultimately having its stock price goes up when the market eventually values it fairly.

So if say, you want to invest in a REIT now, these pieces of news will help you decide what should be in your To-Do or KIV list.

Note that the stock price of REITs won’t react immediately to these news, so you still have time – that’s the good thing about REIT stock. The bad thing is that it is not for short term investors. It is only for those you are patient and having long term outlook.

Are you one?

These latest updates on M-REITs should give you some ideas which one to buy now and which one to sell now, given their latest developments.

An asset in Trengganu – Mydin hypermarket to be exact.

see details below

Education REIT with international schools as its real estate properties portfolio?

You bet.

And since education is one of the modern day necessity and there’s no end to parents who are able and equally willing to send their kids to international school (even though fees at international schools hike by double digit every year), this new class of REITs holding education-related assets will emerge as more resilient, if not as defensive as healthcare REITs.

Let’s face it, medical and education fees are probably the top two sectors where businesses can raise fees every year without so-called ‘losing’ customers. Complain till the cows come home, but if you can’t afford the high fees imposed by businesses in these 2 sectors, you find a cheaper alternative. The people who can afford them will still flock to these businesses.

Furthermore, it is on triple net lease for this very unlisted (unfortunately) education REIT!

I’d say, this article does give me some positive insights on how it is going to grow its DPU beyond 10.5, which has been static for some year.

The answer lies in turnover rent.

Read more for details – straight from the horses (CEO) mouth.

Although Malaysia REIT sector only has less than 20 counters, it is not ‘stagnant’ despite what some people think. Just last month (Aug ’17) when we talked about growth, this month (Sept), another REIT has announced a high quality asset acquisition. Also, analysts expect MQREIT to have any round of asset acquisition in 2018.

Important updates this month include:

• Pavilion REIT and KLCCP Stapled REIT seeing some earnings decline due to tenant relocation
• Oversupply of offices and retail spaces is still persistent
• IGBREIT will be your best bet for exposure to retail REITs (see why below)
• MQREIT next acquisition > Menara Celcom (see details below)
• ARREIT acquire Vista Tower from Intermark S/B, the last piece of property within Intermark integrated development to be sold by Blackrock

Here are a few salient points on the new acquisition – Pavilion Elite

• To complete by Q4 2017
• Funded by debt ; gearing up marginally circa 2-3%
• Net Property Yield est 5.95% via GRR for first 4 years
• Lease = 10 + 10 years

Here are a few salient points on the new acquisition – which is 2 plots of land leased back to tenants for 15 years

• Rental hike 10% every 3 years
• Fully funded by debt
• Gearing to go up 5%
• Net Property Yield est 7%

Here are a few salient points on the new acquisition – Pavilion Elite

• To complete by Q4 2017
• Funded by debt & private placement
• Net Property Yield est 6.1%