IPO (Rating 3 star out of 5 )
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Date
Open to apply: 04/09/15
Close to apply: 15/09/15
Listing date: 29/09/15
Fundamental
Market: Main Market
Price: RM1.00
Distribution: RM0.0641 (2016: 99.9% rate), RM0.0181 (2015 9mth: 99.9% rate)
P/E: 32x (base on 2015 estimate), 15x (2016)
NA after IPO: RM0.98
Debt ratio: 0.377 (Debt: RM345 mil, Asset: RM916 mil) & debt policy should not more than 50% financing
Dividend policy: Min 90% from distributable income & half year basic
Asset valuation: every 3 years
Syariah Status: Yes
Business
Rental income, parking income, advertising, & others.
Main Revenue (until June 2015 in Nett)
Komtar JBCC: RM2.528 mil
Menara Komtar: RM1.75 mil
@mart Kempas: RM1.842 mil
KFCH College:RM1.097 mil
QSR Properties: RM18 mil p.a. (27 properties of KFC & Pizza hut restaurant)
Fees
Trustee's Fee: 0.02% p.a.
Management Fee: 0.25%-1%
Aquisition Fee: 1%
Divestment Fee: 0.5%
Others: -
Use of fund
Payment of Puchase: 96.24%
Listing Expenses: 3.76%
Conclusion
Good thing is:
1. IPO price (RM1.00) very near to net asset value (RM0.98).
2. REIT income focus/distribution rental, which is not a high risk counter.
3. Income from REIT in Malaysia is only tax able 10%.
4. Having Syariah status, which it will attractive to fund manager (e.g. Islamic unit trust) to purchase.
5. Debt ratio is still in healthy level 0.377.
6. Having forcase distribution income for 2016 is 6.41%
The bad things:
1. Estimated 9mth 2015 distribution income is RM10.5 mil, but in 2016 is RM37.229 mil. Sound good but already 3x times from 2015 income.
2. Having net property loss in 2014.
Overall, this is a normal IPO. 6.41% dividend yield is normal level for a REIT counter. The REIT IPO at current bad market enviroment, we might get opportunities to buy below it IPO price RM1.00 & 7% yield is around RM0.91