Reits DPU doesn't depends on P&L but depend on Cash Flow. Not realise P&L will not affect the cash flow therefore, Reits with Losses still able to give distribution as long as there is positive cash flow. YTL reit make losses mainly due to Aussie borrowing for Australia assets. Borrowing became more due to AD appreciate against RM but at the same time the Australia assets also appreciate due to AD and asset appreciation. This is why when YTL reit make losses, they still can give 100% distribution and at the same time NTA also increase to 1.4+ from 1.3+.
Last DPU is to clear cash flow retain before Placement for acquired Menara Shell and is up to 16th Dec. Mqreit will still have cash flow from 17th till 31st Dec. Therefore, likely end January will declare some distribution 18/12/2016 12:23
http://klse.i3investor.com/servlets/cube/leecuteguy.jspThe PP for YTL REIT with 9.25% discounted price @RM1.06. These people who sell mainly are those who wants quick profit but not genuine investors. Of course, some of them also panic sellers sold when the price suddenly drops.
Private placement (or non-public offering) is a funding round of securities which are sold not through a public offering, but rather through a private offering, mostly to a small number of chosen investors. PIPE (Private Investment in Public Equity) deals are one type of private placement.
http://klse.i3investor.com/servlets/cube/smartly.jsp. the payment is for up to 15th Dec. Private placement proceed mainly is to acquired Menara Shell. DPU will still at least more than 6% after PP. good to invest more if you looking for more than 6% return if the price not more than 1.23
I sold some at Rm1.3 due to over bought with no intention to buy back. 1.30 is ex 1st Oct- 15th. Dec DPU price. There is another 0.5 cent dividend to pay out end next month. To drop back to 1.23 after CNY really needs miracal or major correction.
FY16 realised net income (RNI) of RM59.2m met both our and market expectation at 100% and 102%, respectively. FY16 GDPU of 8.38 sen was also within expectation (100%). Maintain FY17-18E earnings of RM92.0-95.5m. Maintain OUTPERFORM but increase TP to RM1.36 (from RM1.28), based on FY17E GDPS of 8.40 sen and a lower spread of +2.00ppt (from +2.40ppt) to our 10-year MGS target of 4.20%.
We continue to like MQREIT given its high dividend yield (highest among REITs in our universe), stable assets in prime location of KL Sentral with high occupancy rate and healthy WALE profile. Its portfolio assets size has increased to RM2.2bn and is qualifying into bigger cap space. Valuation TP revised higher to RM1.40 (from RM1.33) based on lower targeted yield of 6.2% (from 6.5%), 3SD below 1-year historical average yield spread between MQREIT and 10- year MGS. Source: Hong Leong Investment Bank Research - 26 Jan 2017
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....
leecuteguy
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Posted by leecuteguy > 2016-12-15 22:57 | Report Abuse
thx kensington for the explanation, sorry for late reply because busy @ work...........may i ask do u familiar with ytl reit