Aseambankers Malaysia Bhd announced that:-

• Axis REIT Managers Bhd’s proposed acquisition of a five-storey building for RM37mil will boost its asset size to RM618mil, bringing it closer to its target size of RM800mil by year’s end, This proposed buy represents its 16th property which is an office and factory in Petaling Jaya, from Wah Seong Industrial Holdings Sdn Bhd. Continue reading ‘Axis REIT Purchase of Building To Close Asset Target’

In a filing with Bursa Malaysia, Atrium REIT announced it has:

• has acquired an industrial building at Senai Industrial Park,Johor for RM12.5mil from Yong Jin Development Sdn Bhd. Continue reading ‘Atrium REIT Buys Industrial Building’

Malaysian developers are taking every slightest opportunity to dispose of their assets to REIT in the quest to seek more liquidity. Whether it’s a good sign or not to the new unit-holders, it’s yet to see.

Sunway City Bhd has announced to set up the country’s biggest real estate investment trust (REIT) worth RM3bil in the second half of next year. The location of listing the REIT has still not been ascertained. Money raised from the REIT would be used to fund the acquisition of more land. Continue reading ‘Sunway City Proposes RM3bil REIT’

Axis Real Estate Investment Trust (Axis REIT) announced a revaluation surplus of RM30 million to be incorporated in its fund following the revaluation of its five properties in Petaling Jaya, Selangor.

• The properties’ total net book value was RM334.2 million following the revaluation exercise in August compared with RM304.27 million as at June 30, 2007; Continue reading ‘Axis REIT Properties Revalued To RM334m’

Entertainment Properties Trust (NYSE:EPR)

• Kansas City-based company which became the first real estate investment trust (REIT) to focus exclusively on cinema megaplexes and the themed retail centers

• is the largest owner of entertainment related real estate in North America, owning megaplex movie theatre properties, entertainment retail centers and other specialty properties in metropolitan markets in the United States and Canada.
• The portfolio is comprised of 7.1 million square feet of properties and has $1.4 billion of assets.
  
• Entertainment Properties has as it tenants AMC Theatres, Loews Cineplex, Wallace Theatres, Rave Motion Pictures, Consolidated Theatres, Muvico Theatres, AmStar Entertainment, Crown Theatres, Regal Entertainment, Southern Theatres and Kerasotes ShowPlace Theatres.

This article should be read in conjunction with other articles Part 1 to 6 on evaluation of REITs.For those unfamiliar, append below are some key drivers which can impact the capital appreciation of a REIT :-

1. Interest rates regime
2. Acquisition trails of a Reit to generates profit growth
3. Professionalism of the REITs Managers
4. Changes in the law like improved debt funding and/or lower taxation Continue reading ‘Some Key Drivers To Capital Appreciation In REITS’

Append below a summary of the tax incentives for the Malaysian REITS which impact the REITS and/ investors:

(a) Existing Tax Incentives before Budget 2007

• Gains arising from disposal of real property to REITS are exempted
• Stamp duty on transfers of real property to REITS are exempted

(b) Further Incentives for REITS as announced in the Budget 2007

Item (I) and (II) are effective from 1 January 2007 and proposals (iv) and (v) are effective from year of assessment 2007.

(I) Non-corporate investors (example resident and non-resident individuals) and other local entities receiving distributions from REITs listed on Malaysia will be subject to a final withholding tax of 15% for five years;

(II) Foreign institutional investors (example, pension funds and collective investment funds) receiving distributions from REITs listed on Bursa Malaysia will be subjected to a final withholding tax of 20% for five years;

(III) Local corporate investors will be subjected to the existing tax treatment and tax rates;

(IV) Foreign corporate investors will be subjected to a final withholding tax at the rate of 27%;

(V) REITs will be exempted from tax on all its income provided that at least 90% of its total income is distributed to the investors; and

(VI) Where the 90% distribution is not complied with, the REITs will be subjected to income tax while all their investors are eligible to claim tax credits.