The urban myth; REIT is a dump site for bad properties. [Posted on 13 Oct 10 Investlah KLSE forum]
The success story; REIT acquires old properties and refurbish them by giving them new facelifts. Amount of rental incomes increased after improvement of rental space.
The true story; most REITs do not outline the policy for shareholders. Dividend distribution, Pay out period, % of income distributed as dividend, calling a shareholder meeting, shareholder meeting with manager etc.
The CMMT myth; a relatively new Penang shopping mall Gurney Plaza valued higher than a well established Sungei Wang in Bintang golden triangle. Another shopping mall located outside prime shopping and residential area worth as much as other shopping malls in prime & subprime areas. Units would apparently worth so much more. However investors collect smaller dividends with higher prices purchase of units. 5% and lower simply not viewed as a good rental income for any property investor.
The CMMT success story is told by CMTs in China and SG. Malaysia can be a different place for foreigners. Look, pirated CDs and imitations are all over the street and allies. Foreigners flock to Petaling street instead of shopping malls in the evening. In fact, the best place to do business is on the street. Cos shop owner don't need pay rental and shopper can ask for big discount. Penang food are mostly sold on the street and houses too. Even restaurant like Secret Recipe can operate inside a house. Why need commercial shopping mall after all just for retail purpose? Out of 100 shopping malls in KL, how many of them are in good business? Those without other attractions like movie theater, theme park, amusement center etc are mostly a boring hell.
The CMMT true story, who knows what the next quarter figures look like. Even so, what rights do the shareholder have?
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