Building valuation is only relevant if REIT want to dispose. Other than that, it is just value on the balance sheet.
RI is to partly finance acquisition (the balance is through borrowings). That will help offset the lower rental reversion (plus there is AEI coming up for Subang Parade and Mahkota Parade, so there will be some rental hit like what happened during the last AEI exercise).
Read Hektar's report you will know the Right Issue is for buying a shopping mall in Johor, Muar if I am not mistaken, not for covering loss or for paying back loan. Hektar now have 6 shopping malls, 5 of them outside Klang valley. It is lease affected by competition in Klang Valley.
It's a dividend for ~5 months (incl. July-Aug), because of the recent rights issue. Annualized, it works out to about 9.6 sen for the year. A nice way to attract dividend seekers to help push up the share price.
Div EX-date 23 Aug 2017
Note: Rights application last date is 15 Aug 2017. Not sure when the new shares will be listed, but by convention, it should only be done after the dividend ex-date. So, if you want the dividend, have to buy from the open market. :)
gforce2 sifu i3 needs more members like you who are informative and talks with sense. Not those irresponsible ones that talk shit all the time. Huhuhu 4 cents dividend no shit !
hektar is no more the hektar of yesteryear, so lucky i sold all at 1.67, seeing dividend yield fall on price leap, be cautious on all reit counter that deal with mall business even Pavilion, Igb, sunway, cmmt. etc, move to Mqreit and alaqar....they are least affected.
Despite fake "good QR" many are still selling. Dividend money will come after RI not before. Where to find money to subscribe RI? Selling Hektar is 1 way.
Profit is from property revaluation not improvement in business. Do you think easy for Hektar to sell 30 years old shopping mall when they are so many newer malls? Until the old shopping malls are sold it remains paper gain not actual gain.
Hektar returns faster than money in the bank for sure. Contrary to the negative comments here i bought a lot of mother shares last week around 1.23 - 1.25. So far i only hear bad comments from the little fish here. The big share holders who know more on this reit are happy with what they have.
Hektar has done remarkably well 2nd qtr compared with other retail reits. It's realised EPS is 2.59 sens and unreliased portion is 0.03 sens. Realised earning means actual profit revenue from rentals. Dividend for 5mths at 4 sens means an annualized rate 7.38% returns based on a share price of RM1.30. Hektar has always paid dividends less than their EPS, meaning these dividends are paid from their profits and not from their reserves or borrowings. This means their dividends are sustainable.
Agree - Hektar returns faster than money in the bank up to 8%. Those negative comments are ah beng from pasar malam who boh tack che and come here kao peh kao bu !
AK2899, i hope i am not who you refer to from pasar malam. i ever made 500k from hektar after 8 years invested... i bought the right at 8 sen and sold at 12 sen for a profit of 50% nett gain 20000 in 5 days. why i sold and not taking up, it is due to the financial condition of Hektar may not be so good , using the right issue money to pay fantastic never happened high dividend, That itself sound weird, let see after the EX- date.
Pay dividend to lure more people to take right issue is a cheating company. Why need RI at all? See same thing happened to L&G. What happen now? Run while you can. RM 1 coming.
Posted by Yippy68 > Aug 13, 2017 01:39 PM | Report Abuse AK2899, i hope i am not who you refer to from pasar malam. i ever made 500k from hektar after 8 years invested... i bought the right at 8 sen and sold at 12 sen for a profit of 50% nett gain 20000 in 5 days. why i sold and not taking up, it is due to the financial condition of Hektar may not be so good , using the right issue money to pay fantastic never happened high dividend, That itself sound weird, let see after the EX- date.
1Q2017 divided payout 0.023 2Q2017 divided payout 0.040 and payout date 22Sep2017 (ex date 23Aug2017)
The main reason I keep this stock because of good quarterly dividend payout. I satisfied with the performance and will keep this for long term investment
They did borrow from the bank but it's obvious you skimped through the RI details, else you'd read the part about the reasoning behind the RI on top of bank borrowings.
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....
Dias
9 posts
Posted by Dias > 2017-07-25 01:54 | Report Abuse
Building valuation is only relevant if REIT want to dispose. Other than that, it is just value on the balance sheet.
RI is to partly finance acquisition (the balance is through borrowings). That will help offset the lower rental reversion (plus there is AEI coming up for Subang Parade and Mahkota Parade, so there will be some rental hit like what happened during the last AEI exercise).