AXREIT 5106 BUY, SELL, or HOLD?
Today, I would like to introduce you all a stock that I have been follow for quite sometimes, and now it is the right time to go for it! As of writing, AXREIT is trade at RM 1.50 - 1.51.AXREIT is a Malaysia REIT that claimed too be the first Islamic Business Space & Industrial REIT. To see their official website, click here. Regardless whether are they the first, but indeed they are large in their assets. Unlike some other REITs that focus on particular type of properties, for examples, CMMT focus on shopping mall, and ATRIUM focus on warehousing and logistics, AXREIT covers variety of properties' type which you can found from their website (see link). So what makes it great to invest now?
Variety of Properties' Type
As many will said, economic crisis is coming soon. 10 year cycle curse will arrive soon! I wonder will it comes but I do hope it does come. :) So if it does come, shouldn't you wait? Let me ask this, do you confirm it comes? If you do, can you confirm when it comes? I believe none of you can tell, even the expert can't. So if you wait, you might end up missing the opportunity? Even economic crisis happend, with it variety of properties' type, I believe you will have time to restructure your buy in or exist plan, but of course you have to be aware of the market. What does it means you have time? This is because normally before a economic crisis actually burst, you will notice from a particular industry first. And properties is basically needed for all sort of industries. With that, AXREIT which is not focus on one, even it is affected, it will not sink immediately.
Relatively Low Price
For me, after knowing the potential of the company, its price always matter. After it has split in 4th of Sept 2015, its share price is mainly around RM 1.70 - 1.80. So now, without any particular news, its share has been dropping which sit around RM 1.50 now. I believe this is the right price to buy.
Great Dividend with Current Price
Moreover, good thing about REIT stock is that it paid regular dividend to shareholder. With the price of RM 1.50, you will able to get more than 5% per annual of dividend before tax. This is higher than any Fix Deposit you can get from the current market.
Working with AME Group for New Development
AME is contractor that provide construction services. AXREIT has been working with AME to develop various industrial park, such as iPark which is a great success. With this co-development, AXREIT able to maximize the capital deploy by ensure the best services on construction and marketing for their newly developed properties.
So, think about it, whether this stock which I highly recommend to buy now, worth to add to your portfolio. It should suit all short, medium, and long term investor.
My defination of Short, Medium, and Long term investor as below.
Short Term: 3 years and below
Medium Term: 3 to 6 years
Long Term: 6 years and above
Please be reminded that above is just a recommendation, digested the info and make your own decision. Good Luck!
