Thursday, August 5, 2010

Malaysia REIT report

Our Malaysia REIT portfolio since Jun 2009 have outperformed the long term FD rate in the market. The portfolio start with $100,000, during the year, we have received dividend of $8977, represent about 8% after deducted tax. We were target only to obtain stable income of slightly more than FD, but it came to our surprised, included unrealized profit of $23,000, the return is more than 30%. If we decided to sell all the holding today, we will have the total cash of $132,000.

Two new REIT listed on bursa last month, i.e. CMMT and SunREIT. We use the cash received from dividend to purchase some new shares. Though the expected dividend from these newly listed REITs are not as good as our existing holding (we expect about 7.2% return on dividend for CMMT and SunREIT) but for purpose of diversify and reduce the risk of buying too many unit in one REIT, we purchase some new shares. Since listing, CMMT done at the lowest price of RM0.975 and SunReit lowest at RM0.875. We could not buy at the lowest, but manage to buy some when it start to move up. Compared to today's market price, within 2 weeks, the newly purchase units had gave us 3% of unrealized profit.

Investor who is hunger for yield have lifted the price of REITs, which is something we do not want it to happen, as this may reduce the opportunity for us to invest with cheaper price in near term. Finally, one of my friend recently ask, what will happen if market crash in next few months? My answer to him was, don’t fear when price go down, as it’s time to take advantage of this to lower the investment cost. Isn’t it investor always looking forward to buy good properties at very favorable prices?

1 comment:

  1. yeah..i love REIT!! keep on accumulate..every time the price go down i am get excited!!


Note: Only a member of this blog may post a comment.