“SENTRAL has approximately 511,000 sq. ft. (or 28% of its total committed net lettable area) due for renewal in 2022, with 68% of these leases due in 1H 2022. Approximately 51,000 sq. ft. or 15% of leases due in 1H 2022 have been successfully renewed. The non-renewals for the said period were due to the departure of tenants at Quill Building 2 and Wisma Technip.
The tenure of all the properties owned by the Sentral is freehold. Any advantage of freehold properties over leasehold properties as owned by other reit stocks ?
@rahulsk1947 Sentral REITS is still paying 2 times dividend. From previous trend, they will announce second dividend or Q4 dividend in January but this year they give out earlier. This year's dividend is lower than former years at 6 cents or 7%. This early dividend maybe due to inclusion of Menara CelcomDigi into portfolio as Q4 result in January 24 will include income from Menara CelcomDigi.
Let’s compare Sentral REIT’s dividend yield to other Malaysian REITs. 🏢🇲🇾
Sentral REIT: The current dividend yield for Sentral REIT is approximately 8.74%1. Now, let’s take a look at the dividend yields of some other notable Malaysian REITs:
Axis REIT: Offers a dividend yield of 5.45% Sunway REIT: Provides a dividend yield of 5.95% IGB REIT: Has a dividend yield of 5.77% Pavilion REIT: Yields approximately 7.09% KLCC Property Holdings: Offers a dividend yield of 5.42%
REIT (Real Estate Investment Trust) stocks can benefit from falling interest rates.
Interest Rate Sensitivity:
REITs are known for their income-generating properties, such as commercial real estate, apartments, and shopping centers. When interest rates decline, the cost of borrowing for REITs decreases. This leads to lower financing costs for property acquisitions and development. As a result, REITs can potentially enjoy higher net operating income (NOI) due to reduced interest expenses. Dividend Yields:
REITs are required by law to distribute a significant portion of their income to shareholders as dividends. Falling interest rates make the dividend yields offered by REITs more attractive relative to other income-generating investments. Investors seeking stable income often turn to REITs during periods of declining rates. Property Valuations:
Lower interest rates can lead to higher property valuations. As rates fall, the discount rate used to calculate the present value of future cash flows from real estate assets decreases. This results in higher property prices, benefiting existing REIT holdings. Refinancing Opportunities:
REITs often have existing debt on their properties. When rates decline, REITs can refinance their debt at lower interest rates, reducing their overall interest expense. This positively impacts their cash flow and profitability.
Acquisition of Menara CelcomDigi is mega bearish. The company is holding the bag on many commercial real estate with very low occupancy rate. This is not enough to offset the company's loads of debt and poor cash position. RHB analyst is WRONG
Price target based on DCF basis should be around ~ RM0.68. This is not looking good for the future outlook of the company. More downward revision of EPS to come for at least the next 3 quarters
@Kenokaya it is correct.. it is topping up the distribution given in advance in November last year, of which the total is 3.49 sen, higher than the distribution of the first half of 2023 at 3.19 sen
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....
kllee
178 posts
Posted by kllee > 2022-08-18 23:07 | Report Abuse
Maybe want to give surprise !