In today’s business news, Axis REIT revealed that Nestle will be vacating its Nestle House building and moving on to another premise in Mutiara Damansara as the current Nestle House building will not be able to cope with its future plans. You can read the full press release here on The Star.
Whilst this is a little temporary and short term setback for Axis REIT to lose rental income from a stable tenant for one of its iconic building in Petaling Jaya, it does present some longer term opportunities for investors.
Since reading this piece of news, I immediately went to check on the price of the REIT and will be monitoring how it is doing. At the current price of RM1.42, I am not buying in yet. If the price of this stock drops because of the news of Nestle moving out, then it is an opportunity for me to be buying in.
Of course the above is only my personal aim and strategy, you may beg to differ. But for discussion sake, if you were to buy into REITs, which REITs would interest you?
{ 6 comments… read them below or add one }
Actually interested in REIT, but i’m not good at it at all…and after studying some of the portfolios…there isn’t one which interests me except for starhill.
I think the one of good things about REIT is the tax deduction.
Alvin, I’m not good in them as well. But can always read and learn up and hopefully we all make good investments in them.
ChampDog, you’re right!
I’m monitoring AXReit too. Also looking at Starhill REIT, BSDreit and Atrium REIT for now.
Looks like another fan of REITs there!
I struggle trading the REIT’s myself but will take a look at the AXIS one. thanks.