Thursday, April 16, 2015
"AmFIRST Real Estate Investment Trust Bhd expects its asset under management to increase 18.9% to RM1.57 billion, from RM1.32 billion as at Dec 31, 2014 after its acquisition of the Penang Mydin hypermall building for RM250 million.
Am ARA REIT Managers Sdn Bhd CEO, Wong Khim Chon said the proposed acquisition will help provide stable income that will increase its asset portfolio from the retail sector from 21.5% in FY14 to 34.2%...
This transaction will be accretive at both net property income and distribution per unit levels. On an annual basis, the proposed acquisition is expected to contribute DPU of 0.34 sen per unit," said Wong.
The property is located along Jalan Baru which is the main service road connecting Bukit Mertajam and Butterworth, Penang.
The acquisition is expected to be completed by end of July and fully leased to Mydin Mohamed Holdings Bhd for 30 years with 10% increament every five years.
The acquisition which will be financed by bank borrowings which will increase its gearing to 42.8% from 32.6% in FY14."...read more
...I have added some AMFIRST units to my stock portfolio due to its improving property portfolio profile with the latest retail property purchase. Furthermore, AMFIRST will be announcing its next half-yearly income distribution sometime next month.
Posted by Stephen at 3:15 PM