Investing in REITs is a great way to diversify your portfolio outside of traditional stocks and bonds and can be attractive for their strong dividends and long-term capital appreciation.
But then, how can a REIT report a loss? This is what we witnessed at Tower REIT... Let's take this as a good case study here...
So, how does Tower REIT swings into a loss in the most recent quarterly income announcement?
Short Answer: Revaluation
The Revaluation was carried out to comply with Clause 10.02 (b)(i) of the Securities Commission's (“SC”) Guidelines on Listed Real Estate Investment Trusts (“SC Listed REIT Guidelines”) where all investment properties of Tower REIT are required to be revalued at least once a financial year and for accounting purposes in line with the Malaysian Financial Reporting Standard 140. The Revaluation is not subject to the approval of the SC.
The details of the revaluation deficit to be incorporated in Tower REIT’s financial statements as at 30 June 2023 arising from the Revaluation are set out below:
The Revaluation was carried out by Savills (Malaysia) Sdn Bhd, an independent firm of professional valuer.
Brief Properties Info:
MENARA HLX (formerly known as Menara HLA)
- Menara HLX is a newly refurbished 32-storey corporate office tower located in the heart of Kuala Lumpur's Golden Triangle, located just 200m from Pavilion Shopping Centre in Bukit Bintang.
- It is home to the Hong Leong Exchange (HLX) - a strategic collaboration between HLX Sdn Bhd and the Malaysia Digital Economy Corporation (MDEC) to create a dedicated innovation exchange that will enable Malaysian innovation and technological leadership to flourish.
- Featuring collaborative work spaces, curated offices and accessible training areas, Menara HLX offers a conducive ecosystem for tech start-ups to connect, interact and grow.
- Anchor tenants: Beyond4 Training Academy, Commerce.Asia, International Petroleum Corp. and Hong Leong Investment Bank.
PLAZA ZURICH (formerly known as HP Tower)
- Nestled in the upmarket suburb of Damansara Heights
- The commercial building comprises two office blocks and a retail podium, and features functional, high-quality office space, with easy access and ample parking.
- Anchor tenants: Zurich Life & General Insurance, Hong Leong Investment Bank, Hong Leong Asset Management and Hewlett-Packard PPS Sdn Bhd
- Retail podium features a vibrant selection of F&B tenants, including Ali, Muthu & Ah Hock, The Hub Coffee Roasters
GUOCO TOWER
- 19-storey premium-grade office tower.
- Green Building Index (GBI) certified and Gold LEED 2009 Core & Shell Development-accredited building, and a designated MSC Malaysia Cybercentre.
- Strategically located just 5km from Kuala Lumpur City Centre, Guoco Tower is a part of Damansara City - a RM2.5 billion integrated development in the upscale neighbourhood of Damansara Heights.
- Anchor tenants: British American Tobacco Malaysia, Dentsu Holdings, AECOM Perunding and GuocoLand.
~ End ~
Higher interest rate doesn't bode well for local REITs, except this one...
(Click here to read)
Understanding REITs: What is a Real Estate Investment Trust (REIT)?
(Click here to read)
5 rules of thumb on M-REIT investing
(Click here to read)
#########################################################
Higher interest rate doesn't bode well for local REITs, except this one...
(Click here to read)
Understanding REITs: What is a Real Estate Investment Trust (REIT)?
(Click here to read)
5 rules of thumb on M-REIT investing
(Click here to read)
#########################################################
Follow our active FB page via
Follow our Crowdfunding FB page via
Follow our e-wallet FB page via
No comments:
Post a Comment
Finance Malaysia Blog appreciates your comment. Cheers!