Still Want To Invest In Properties!? REIT Dividend Yield 2013

Posted by Kris | Saturday, November 02, 2013 | , | 1 comments »


With the banning of the DIBS scheme on new developments, and the dreaded RPGT increase, I am now seeing a lot of property gurus now moving into the following trends and propagating these following advice to their followers:

1. Buying 'distressed' properties at auctions


So you are seeing alot of them conducting courses/training on how to bid in an auction, the processes, refinancing tricks (some property books decline to discuss about this super simple method, they deemed it as a "TRADE secret" that can be explained in paid seminars. Here), etc.



2. The secondary market for 'under-valued' properties


Since there is no longer DIBS for flipping still in construction buildings, they are moving now to secondary markets. According to them, some area is still "under-valued" aka a gem to be discovered. Hmm..

My thought are as follows:


With RPGT, flipping is no longer that attractive, since you might be paying 30% (max) of your profit to the government. And to play the property auctions and secondary under-valued, the KEY here is actually RENTAL YIELDS since you don't want to dispose too soon the properties due to the high RPGT that will hurt your profits.

So conclusion, if you can find a property that can yield higher than FD rental yields, go ahead and purchase the property for rental. Else, LOOK elsewhere and invest in stocks or even REITs. REITs gives better dividend yield MINUS the hassle of up-keeping and chasing rent. For me, it is not fun and effective to chase my tenants across all around Malaysia.

As for me, I am now vested heavily in stocks since I believe it will give higher returns with the current mini-bull run on the small caps. (see here for the Top 30 Malaysia Small Cap Jewels). Use it as guidance and DO your own research before buying. That is IMPORTANT!



Average Yield = 6.323%
REIT
Period
DPU (sen)
Price (RM)
Yield
NAV (RM)
Assets Type
Starhill
2H – Jun13
3.7930
1.020
7.437%
1.0112
Diversified
AmanahRaya
Q1 – Dec13
1.8300
1.030
7.251%
1.0573
Retail
Tower
1H – Jun13
5.0900
1.540
7.227%
1.8233
Office
Quill Capita
1H – Jun13
4.1000
1.170
7.162%
1.3563
Office
UOA
1H – Jun13
5.2800
1.460
7.233%
1.5021
Office
Hektar
Q2 – Jun13
2.6000
1.520
6.842%
1.4900
Retail
Atrium
Q2 -Jun13
2.2000
1.310
6.718%
1.2381
Industrial
AmFirst
2H – Mar13
3.6500
1.040
6.548%
1.2018
Office
Sunway
Q4 – Jun13
2.0200
1.330
6.075%
1.1809
Diversified
Al-AQAR Healthcare
2H – Dec12
4.5400
1.370
5.693%
1.1445
Plantation
CMMT
1H – Jun13
4.3500
1.550
5.613%
1.1968
Malls
IGB REIT
1H – Jun13
3.4300
1.230
5.577%
1.0208
Malls
Axis
Q2 -Jun13
4.6000
3.430
5.364%
2.1580
Office
Pavilion
1H – Jun13
3.6500
1.330
5.489%
1.1333
Malls
Al-Hadharah
1H – Jun13
4.0000
2.060
4.612%
1.8182
Diversified
Last Updated : 25-Oct-13

Notes
  • AmanahRaya : Yield Uses DPU = 2.0494 sen (Q412) + 1.7888 sen (Q312) + 1.8 sen (Q212) + 1.83 sen (Q113) due to it’s seasonal nature
  • Tower : Yield Uses 1H13 DPU = 5.09 sen + 2H12 DPU = 6.04 sen
  • QCT : Yield Uses 2H12 DPU = 4.28 sen + 1H13 DPU = 4.1 sen as it is Observed that 2H DPU > 1H DPU
  • Al-Hadharah : Yield Uses 2H12 DPU = 5.5 sen + 1H13 DPU = 4 sen as it is Observed that 2H DPU > 1H DPU
  • AmFirst : Yield Uses DPU = 3.65 sen (Q4) + 1H13 DPU = 3.13 sen as it is Observed that 2H DPU > 1H DPU
  • Sunway : DPU Payout = 2.19sen (Q2 – Dec) + 0.83 sen (Advance for 1-Jan-13 to 13-Feb-13)
  • Al-Aqar KPJ : Yield Uses 2H12 DPU = 4.54 sen + 1H12 DPU = 3.26 sen as it is Observed that 2H DPU > 1H DPU
  • AmFirst : 3-for-5 Rights @ RM0.83 ; 10 Jul 12 Circular ; NAV = RM1.44 -> RM1.18 ; Gearing = 45.89% -> 29.68% ; Loan Interest Savings = RM8.93Mil
  • Pavilion : DPU = 5.73 sen (IPO FY12 Forecast)


Digg Technorati del.icio.us Stumbleupon Reddit Blinklist Furl Spurl Yahoo Simpy

1 comments

  1. kampunginvestor // 4:57 PM  

    REIT is good for those who can't afford property. Cost is low but return is quite good also. :)

    eyeing IGBREIT! :)