Uoa Real Estate Investment Trust

$UOAREIT / 5110 (UOA REAL ESTATE INVESTMENT TRUST)
Research by Malacca
Sell – TP RM0.93

“Neutral Outlook For Office Space"

SELL recommendation with RM0.93 TP. We have a SELL recommendation on UOAREIT with a TP of RM0.93. The target price is derived by ascribing a P/E of 14.0x to FY25f EPS of 6.64 sen as we roll over to FY25f earnings. The group is committed to reward at least 90.0% of the distributable income.

Analyst:
Loui Low
louilow@msec.com.my

Top 5 Dividend Yield REITs in Bursa Malaysia 🏢🏘

Real estate investment trusts (REITs) are trust funds that own, operate, or finance income-producing real estate across various sectors such as retail, hotels, industrials, offices, healthcare institutions, warehouses and more.

Investing in REITs allows Stockbitors to earn income from real estate without needing to buy, manage, or finance the properties yourself. REITs are required to pay out at least 90% of their income to unit holders, generally resulting in high dividend yields, along with the potential for long-term capital appreciation as the value of real estate or the rent increases.

Today, we've filtered for 5 REITs in Bursa with the highest trailing dividend yields! Are the dividend yields sustainable? Do any of them interest you?

Let us know in the comment section below!

$HEKTAR / 5121 (HEKTAR REAL ESTATE INVESTMENT TRUST) $SENTRAL / 5123 (SENTRAL REIT) $IGBCR / 5299 (IGB COMMERCIAL REAL ESTATE INVESTMENT TRUST) $KIPREIT / 5280 (KIP REAL ESTATE INVESTMENT TRUST) $UOAREIT / 5110 (UOA REAL ESTATE INVESTMENT TRUST)

$UOAREIT / 5110 (UOA REAL ESTATE INVESTMENT TRUST)
Research by Malacca
Sell – TP RM0.93

“Below Expectations: Hit By Higher Operating Expenses"

SELL recommendation with RM0.93 TP. With the revised earnings forecast, we downgrade to SELL from Hold on UOAREIT, with a lower target price of RM0.93. The target price is derived by ascribing a P/E of 14.0x to FY25f EPS of 6.64 sen as we roll over to FY25f earnings. The group is committed to reward at least 90.0% of the distributable income, translating to a prospective dividend yield of 4.7-5.3% for FY24-25f.

Analyst:
Loui Low
louilow@msec.com.my

Sold $MASTER / 7029 (MASTER-PACK GROUP BERHAD) and $SURIA / 6521 (SURIA CAPITAL HOLDINGS BERHAD) for after nice 3 years of dividends, and gains
still holding $UOAREIT / 5110 (UOA REAL ESTATE INVESTMENT TRUST)

$UOAREIT / 5110 (UOA REAL ESTATE INVESTMENT TRUST)

Quarterly rpt on consolidated results for the financial period ended 31/03/2024

NET ASSET VALUE / INDICATIVE OPTIMUM PORTFOLIO VALUE

Top 5 Dividend Yield REITs in Bursa Malaysia 🏢 🏘

Real Estate Investment Trusts (REITs) can be a valuable addition to an investor’s portfolio as they allow investors to participate in the real estate market without the need for significant capital or the responsibilities of property ownership. REITs are required to pay out at least 90% of distributable income to unitholders, so many investors flock to REITs for their regular dividend pay outs as part of a balanced portfolio.

Here, we have screened for the 5 highest Dividend Yielding REITs in Bursa! However, do bear in mind that DY is a lagging indicator and Stockbitors should always do due diligence to ascertain the health of a REIT before making any investing decisions!

$SENTRAL / 5123 (SENTRAL REIT) $HEKTAR / 5121 (HEKTAR REAL ESTATE INVESTMENT TRUST) $YTLREIT / 5109 (YTL HOSPITALITY REIT) $KIPREIT / 5280 (KIP REAL ESTATE INVESTMENT TRUST) $UOAREIT / 5110 (UOA REAL ESTATE INVESTMENT TRUST)

OTHERSUOA REAL ESTATE INVESTMENT TRUST
- OUTCOME OF 12TH ANNUAL GENERAL MEETING

Annual Report & CG Report - 2023

General Meetings: Notice of Meeting

$UOAREIT / 5110 (UOA REAL ESTATE INVESTMENT TRUST)
Research by Ambank
Buy (Maintain) – Target Price RM1.23

“Stable occupancy rate in FY23”

We maintain BUY on UOA REIT with a lower fair value (FV) of RM1.23/unit (from RM1.32/unit previously) based on our revised dividend discount model (DDM). Our FV has incorporated a neutral 3-star ESG rating (Exhibits 8 & 9) and implies a FY25F distribution yield of 7%, at parity with its 5- year median.

Analyst:
Khoo Zing Sheng
khoo.zing-sheng@ambankgroup.com

UOAREIT - Notice of Book Closure

OTHERSUOA ASSET MANAGEMENT SDN. BHD,
The Manager of UOA Real Estate Investment Trust (UOA REIT) had undertaken a revaluation exercise on its investment properties

Quarterly rpt on consolidated results for the financial period ended 31/12/2023

NET ASSET VALUE / INDICATIVE OPTIMUM PORTFOLIO VALUE

Income Distribution

$UOAREIT / 5110 (UOA REAL ESTATE INVESTMENT TRUST)
Research by M+ Online
Hold – Target Price RM1.20

“Results within expectation”

• Maintained earnings forecast. As the core net profit came in within expectation, we maintained the earnings forecast for FY23-25f.
• HOLD recommendation with RM1.20 TP. We maintained a HOLD recommendation on UOAREIT, with target price of RM1.20. The target price is derived by ascribing a P/E of 14.0x to FY23f EPS of 8.6 sen. The group is committed to reward at least 90.0% of the distributable income of the Trust.
• Downside risks. Risks to our recommendation include the slower-than-expected recovery in the rental activities due to the shift of working method post pandemic environment. Besides, should the BNM increase interest rate going forward, the group may incur higher borrowing cost. Also, if there is a hike in electricity tariff, it could weigh on UOAREIT’s margins and overall financial performance moving forward.

Analyst:
Loui Low Ley Yee
louilow@msec.com.my

Quarterly rpt on consolidated results for the financial period ended 30/09/2023

NET ASSET VALUE / INDICATIVE OPTIMUM PORTFOLIO VALUE

Change in Audit Committee - MR TEO CHEE SENG

Change in Boardroom - MR TEO CHEE SENG

Change in Audit Committee - MISS KARN SAU MENG

Change of Address

$UOAREIT / 5110 (UOA REAL ESTATE INVESTMENT TRUST)
Research by Malacca Securities
Hold – Target Price RM1.20

“Margins compressed due to higher property expenses”

• Below expectation. UOAREIT’s 2Q23 core earnings came in at RM13.9m (-2.1% QoQ, -8.9% YoY), brought the 6M23 sum to RM28.1m (-8.0% YoY), which accounted for 45.6% and 42.7% of ours and consensus estimates. The results were deemed below expectations and key deviations include (i) the lower occupancy rate in Wisma UOA II and Wisma UOA Damansara II, (ii) higher expenditure arising from high electricity costs, repair and maintenance expenses and borrowing costs.
• YoY. Most of UOAREIT’s properties managed to demonstrate a YoY improvement in occupancy rates, with the exception of Wisma UOA II. During this period, UOAREIT’s core earnings were down 8.9% YoY, mainly impacted by higher-than-expected total expenditure amid the abovementioned factors.

Analyst:
Loui Low Ley Yee
louilow@msec.com.my

UOAREIT - Notice of Book Closure

Quarterly rpt on consolidated results for the financial period ended 30/06/2023

NET ASSET VALUE / INDICATIVE OPTIMUM PORTFOLIO VALUE

Income Distribution

$UOAREIT / 5110 (UOA REAL ESTATE INVESTMENT TRUST)
Research by Malacca Securities
Buy - Target Price RM1.27

"Occupancy rate still below pre-pandemic level"

• We kept our forecasted earnings at RM61.5m, RM62.1m, and RM63.2m respectively for FY23-25, taking into account the gradual improvement in occupancy rate towards end-FY23, based on the strategic locations of UOAR’s portfolio properties. Meanwhile, we expect the upcoming MD Status of Menara UOA Bangsar will attract more ICT tenants, which will further enhance the occupancy rate of the portfolio.
• We retained our BUY recommendation on UOAR, with an unchanged target price at RM1.27. The target price is derived by ascribing a P/E of 14.0x to FY23f EPS of 9.1 sen. Meanwhile, the group is committed to reward at least 90.0% of the distributable income of the Trust.
• Risks to our recommendation include the slow recovery in rental activities due to the fundamental shift in the way people work under the post-pandemic environment. Besides, the higher borrowing cost and electricity tariff may continue to weigh on UOAR’s margins and overall financial performance moving forward.

Analyst:
Ng Hui Yee
hyng@msec.com.my