Stock With Momentum: Amanahraya REIT

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Amanahraya REIT (-ve)
AMANAHRAYA REIT (Fundamental: 1.3/3, Valuation: 3/3) is a diversified REIT – office buildings constituted 29% of its total asset value while education properties constituted some 22%. Since the start of the year, it has performed relatively well with its share price surging 11.3 sen or 14.1% to 91.5 sen yesterday.

For 2014, rental revenue fell 14.1% to RM55.2 million, mainly due to non-payment of rental for Silver Bird Factory and the vacancy of Wisma Amanah Berhad. Income available for distribution also dropped 24.4% to RM31.9 million on higher operation costs such as electricity and assessment rates.

Its gearing ratio decreased slightly to 33.8% in 2014 from 36.0% in preceding year. The trust currently trades at 19% below book value of RM1.13. Distribution per unit (DPU) for 2014 decreased 10.5% to 6.5 sen in 2014, translating into an above-average yield of 7.1%.


This article first appeared in The Edge Financial Daily, on March 31, 2015.