Myriad headwinds for M-REITs

From The Edge Malaysia
19th Aug 2013

Prospects for real estate investment trusts
(REITs) listed on Bursa Malaysia are likely to stay muted for the foreseeable future.

Whilst REITs had fared well previously, when excessive liquidity and historic low interest rates pushed investors into seeking higher yields in these investments, the trend has reversed in recent months.

Even though unit prices for most of the larger, more liquid trusts have corrected over the past month, their expected returns do not appear any more attractive, given that risk-free returns on government bonds have risen in tandem.

IGB REIT to raise RM838m

By Star Online: Business
10 August 2012

PETALING JAYA: IGB real estate investment trust (IGB REIT) expects to raise RM837.5mil from the initial public offering (IPO) of 670 million units on Bursa Malaysia's Main Market.

The IPO represents 19.7% of the REIT's total listing of 3.4 billion units. Based on a retail price of RM1.25 per unit, the total market capitalisation of IGB REIT upon listing will be approximately RM4.25bil.

IGB REIT, a unit of property developer IGB Corp Bhd, said in its prospectus exposure issued to the Securities Commission that it intended to distribute up to 100% of its distributable income for the period commencing from the date of establishment until Dec 31, 2014, and subsequently at least 90% on a half-yearly basis.