AMFirst REIT

AMFirst REIT has given a really mild hint that they expect to outperform in the next financial year and beyond by saying that they expect that they will be able to cover any charges/losses caused by the preliminary discharge with additional revenues expected in the future. For those who have not had a slightest idea of who they are, look at what they have done in Hong Kong, in Singapore, in Malaysia and in Australia.

4. EFFECTS OF THE DISCHARGE

The Discharge does not have any material effects on the unitholders’ capital, substantial unitholders’ unitholding, gearing and net asset value of the REIT. 

The Discharge will have an impact on the earnings of the REIT. However, for financial year ending 31 March 2011 this will be mitigated by an amount of RM5.67 million received as compensation awarded by the authorities following the compulsory acquisition of the common area fronting The Summit Subang USJ. For financial year ending 31 March 2012 and subsequent years, we expect additional revenue arising from new tenancies as well as positive rental reversion due to the repositioning and rebranding strategies implemented, which will invariably cushion any financial impact arising from the Discharge.

 Comments: Lets just hope that there will not be a huge private placement in the near future.