8 Things To Know About The First REIT in Malaysia: Amanah Harta Tanah PNB

Amanah Harta Tanah PNB (AHP) was listed on 28 December 1990 on Bursa Malaysia. It was the first REIT to be listed in the country. As at 31 December 2017, AHP is worth RM 184.8 million in market capitalization. Here, I would list down 8 quick things that you need to know about AHP before you invest.

#1: Stock Symbol

Ticker Symbol: KLSE: AHP / KLSE: 4952
Market Capitalization: RM 184.8 million (18 February 2018)

Share Price: RM 0.84 (15 February 2018)

Industry: Reit

Syariah Compliant: Nope

#2: The Business

AHP has a portfolio of 7 properties worth RM 459.6 million where it derives bulk of its income from 4 main properties. They are:

1. Mydin Hypermarket Seremban 2
   This property is the latest collection to AHP’s portfolio of real estates as it was acquired on 27 April 2015. The property is a 3-storey mall & hypermarket located at Seremban 2, Negeri Sembilan. Presently, this property is valued at RM 253.0 million, 55% of AHP’s portfolio value. It is leased Mydin Holdings Bhd for a period of 30 years with its next rental review to be scheduled in year 2019.  
2. Plaza VADS
   This property is a 24-storey office building located at Taman Tun Dr. Ismail, Kuala Lumpur. As at 31 December 2017, Plaza VADS is valued at RM 139.0 million, 30.2% of AHP’s portfolio value.  
3. Bangunan AHP
   This property is a 4-storey commercial building located at Taman Tun Dr. Ismail, Kuala Lumpur. As at 31 December 2017, Bangunan AHP is valued at RM 44.3 million, 9.6% of AHP’s portfolio value.
   
   
4. Seri Impian
   This property is a 4-storey office building located at Taman Setiawangsa, Kuala Lumpur. As at 31 December 2017, Seri Impian is valued at RM 15.0 million, 3.3% of AHP’s portfolio value.

The 4 properties above have accounted for 98.1% of AHP’s portfolio value. In addition to these properties, AHP has 3 shop offices which, combined, have a valuation of RM 8.3 million.

#3: The Financials

Here are the key developments of AHP since 2010:

1. 2010 – 2015
   AHP has reduced its number of properties in its portfolio from 12 in 2010 to 6 in 2015. Its existing properties have experienced a reduction in occupancy rates. Thus, AHP has recorded a decline in revenue and realized earnings during the period.  
2. 2016 – 2017
   AHP has completed the acquisition of Mydin Hypermarket Seremban 2, its biggest investment made thus far. This property has single-handedly lifted AHP’s revenue and realized earnings in 2016 and 2017.

Source: Annual Reports of AHP

Source: Annual Reports of AHP

#4: Major Acquisitions

Apart from Mydin Hypermarket Seremban 2, AHP has not made any major proposal or announcement on acquisition of new investment properties.

#5: Debt Profile

AHP has two borrowings. They are the Revolving Credit-i Facility of RM 64.8 million mainly to fund the upgrading and refurbishment of Plaza VADS and the Commodity Murabahah Term Financing-i Facility of RM 125 million to partly finance the acquisition of Mydin Hypermarket Seremban 2.

In total, AHP has RM 189.8 million in long-term borrowings, which is 39.3% of its total assets. Thus, thus, AHP’s gearing ratio is in line with the limit of 50% set by Securities Commission of Malaysia.

#6: Valuation

As I write, AHP is trading at RM 0.84 a unit.

As at 31 December 2017, AHP has reported to have RM 1.28 in net asset value a unit. Thus, its current P/NAV works out to be 0.66.

AHP adopts a distribution policy to declare and pay out at least 90% of its distributable income on a semi-annual basis. For the last 12 months, AHP has paid out 5.20 sen in DPU.

If AHP is able to maintain its DPU at 5.20 sen for the next 12 months, its gross dividend yield is expected to be 6.19%. For individual investors, it is prudent to deduct 10% withholding tax from 5.20 sen when calculating your net dividend yield, as such, I would expect net dividend yield to be 5.56%.

#7: Investors Relation

For further enquiries or to request for additional investment information on AHP’s Investors Relation matters, you may click on the link below:

Link:

AHP’s Investors Relation

#8: Major Shareholders

The substantial shareholders of AHP with their latest shareholdings as at 31 December 2016 are as followed:

– Skim Amanahraya Saham Bumiputera: 41.01%

– Permodalan Nasional Bhd: 5.06%

– Tan Teck Peng: 1.18%

– Jang Wan & Yang Chi Chek: 1.02%

– Liew Yoon Yee: 0.65%

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