Real Estate Investment Trust (REIT) in Bursa Malaysia
So far there are 9 REITs listed in Bursa Malaysia.
- 5116-ALAQAR (Al-’Aqar KPJ Reit)
- 5124-BSDREIT (Al-Hadharah Boustead Reit)
- 4952-AHP (Amanah Harta Tanah PNB)
- 6696-AHP2 (Amanah Harta Tanah PNB 2)
- 5127-ARREIT (Amanahraya Real Estate Investment Trust)
- 5120-AMFIRST (Amfirst Real Estate Investment Trust)
- 5130-ATRIUM (Atrium Real Estate Investment Trust)
- 5106-AXREIT (Axis Real Estate Investment Trust)
- 5121-HEKTAR (Hektar Real Estate Investment Trust)
Real Estate Investment Trust (REIT)
Real estate investment trust typically in the form of a trust fund which pools money from investors and uses the pooled capital to buy, manage and sell real estate assets, such as residential or commercial buildings, retail or industrial lots, or other real estate-related assets. It is a passive investment vehicle which acquires and holds income generating real estates. REITs are driven entirely by recurrent rental income from real estates and with the present tax structure governing REITs, distribute at least 90% of its income to unit holders, thus providing stable and consistent income to unit holders.
Why should you invest in REITs?
- Stable and recurrent income
REITs are driven entirely by recurrent rental income from real estates. It distributes at least 90% of its income to unit holders, thus providing stable and consistent income to unitholders.
- Diversification
REITs invest in a variety of real estates at different geographic locations. This diversification strategy reduces the negative effects associated with holding assets in a single location.
- Professional management
Professional managers manage REITs and they have the expertise beyond the knowledge of individual investors.
- Liquidity
Unlike traditional private real estate ownership, REITs are liquid assets that can be sold fairly quickly to raise cash or take advantage of other investment opportunities. One of the reasons for the liquid nature of REITs is that its units are primarily listed and traded on a stock exchange.
- Affordability
Unlike direct property investments, where investors would require a large capital to invest, REITs provide average investors with the ability to invest and diversify their real estate investments without a large capital.
- Convenience
Sale and purchase agreements, lawyers’ fees and stamp duties are among the many things real estate investors have to put up with. Through REITs, investors are relieved of such factors.
- Comfort of regulations
REITs must comply with the requirements of the Securities Commission Act 1993 , the Guidelines on Real Estate Investment Trusts and the Guidelines on Islamic Real Estate Investment Trusts , which has investor protection as its main objective.
Stop Loss Do Help
Stop loss may not strange for professional investor but if you don’t know, you better check it out. This strategy might reduce loses and it’s some kind of free insurance policy. Check with your remiser whether you can put a stop loss.
While we always make a decision based on emotion, the stop loss can help us to prevent our emotion to control our decision. Putting stop loss when trading called Stop Loss Order. It’s depend on the stock itself but normally stop loss level under 10% of the stock price. Stop loss level shouldn’t decline but should be increase if the share price increase. For example: you bought one lot ABC share at RM1.00, the stop loss should be 90 cents if we based on 10% stop loss level. But if the share price increase to RM1.20, the stop loss level now increase to RM1.08. Meaning that if the share price of ABC drop until RM1.08 or below, you must sell it immediately to avoid more loses. Stop loss doesn’t mean you’re losing money.
This stop loss strategy is design to help you not to fall in love with your stock.
Sample of stock trading calculation in Bursa Malaysia
Let’s say you purchased one lot of TM stock at RM9.70 on September 27. On Monday the stock opened at RM10.20 and you managed to buy another lot at that price. On the afternoon, the price jumped to RM11.00. Since the price is very high and you thought that it’s high enough, you decided to sell it. How much do you get from this contra trading?
Since the stock purchased in different date, the day number must be different.
Wow, very interesting number.