Property & Infrastructure Funds Real Estate Investment Trusts (REITs)

Discussion in 'Shares & Funds' started by Nodrog, 15th May, 2018.

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  1. kierank

    kierank Well-Known Member

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    The only REIT we own is ARF.

    First purchase was back in November 2007. We bought because we saw a growing opportunity in childcare centres.

    Returns have been growth of 7.14% pa and income of 3.66% pa.

    So, it’s not shooting the lights out but ...
     
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  2. The Y-man

    The Y-man Moderator Staff Member

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    Doesn't sound right - if you bought it 7.14% of growth ago, your yield on your invested money should be much bigger?

    Even if you bought on Friday last week (after a huuuuuge run up) at $2,68, I calc 4.87%pa income? (3.38+3.38+3.2+3.20) cents dist last 12 months

    The Y-man
     
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  3. kierank

    kierank Well-Known Member

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    I dunno but that is what ShareSight says :D.

    The percentage are compounding rates of return over 11 years, not a simple rate of return over one year.

    TBH, I just take the SS numbers as it would take me too long to go through 11 years of records ;).
     
  4. Nodrog

    Nodrog Well-Known Member

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    Even better, a waterpark. They should hire me as a consultant, valuation there will go through the roof:). Maybe me and Property are a good fit after all.

    Just finished a 20 minute swim so time for a beer. Carbo-loading I think they call it, very beneficial straight after a workout:cool:.
     
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  5. Fargo

    Fargo Well-Known Member

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    I will continue to be dumb but wealthy then with RFF with a 12% yield on purchase price 5 years ago and 300% CG and an av annual total return of 31%. I think it is dumb investing in anything else.
     
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  6. skater

    skater Well-Known Member

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    The new swimming pool?
     
  7. The Y-man

    The Y-man Moderator Staff Member

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    Well they are into developing water parks..... Home

    The Y-man
     
  8. Redwing

    Redwing Well-Known Member

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    RFF has had a great run, which A-REIT would you look at nowadays for similar 5 year returns @Fargo ?
     
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  9. kitdoctor

    kitdoctor Well-Known Member

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    As a whole the sector has a few good years ahead. The S&P ASX A-REIT recently started its next and final wave up.
    First chart January 2019 about to break trend line (B) - (D)
    A-REIT January 2019.png
    Second chart February 2019 shows push through trend line (B) - (D)
    A-REIT February 2019.png
     
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  10. Nodrog

    Nodrog Well-Known Member

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  11. The Y-man

    The Y-man Moderator Staff Member

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    Strange - I never looked at it as it didn't come up on my primary search - div com au.

    I'll take a sticky beak ..... first impression is that it looks *very* small at $330m and debts at $100m

    NTA at $1.28 per share. Commsec won't touch it with their margin lending (i.e. doesn't pass their risk analysis)

    Call me stupid - but can't seem to see their portfolio anywhere? But I see the dreaded Botanicca name pop up in their AGM.... aaaaaargh!!!!

    The Y-man
     
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  12. Nodrog

    Nodrog Well-Known Member

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    Location of properties:
    GARDA Diversified Property Fund

    Video pres here:

    GARDA Diversified Property Fund (ASX.GDF) Presentation, FNN Investor Event, Mar 2018, Sydney
     
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  13. Nodrog

    Nodrog Well-Known Member

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    GDF from what I read on a forum from an investor in the fund:
     
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  14. Big A

    Big A Well-Known Member

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    My focus has been more on the unlisted side. I might have seen the name before but not one that I have looked at closely or read much about.

    Having a quick look at the portfolio link you put up though the asset quality in the portfolio while not terrible is not overly exciting. Mix of office and industrial. No exposure to Sydney. @The Y-man mentioned NTA $1.28 so trading at a very slight premium. 3 of the 12 assets are development which adds some risk. I would want another 1% yield for a portfolio of this make up.

    So if I compare it to say CMA with centuria which I went in recently I would still prefer CMA. I think the assets in CMA are better with some exposure to sydney. Historically Industrial should provide a higher yield but with all the hype over industrial at the moment the yield on industrial has shrunk. Yes amazon is taking over the world and demand for industrial is on the increase. But still not convinced that all of a sudden industrial is worth a 6% yield.

    Also don't hear much about GARDA as a manager compared to Centuria. I give significant weighting to the manager of the fund.
     
  15. Big A

    Big A Well-Known Member

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    CMA has had a strong run in the last few days. Up at $2..495 today. I bought in December at $2.38 and collected a quarter worth of dividends already. Not sure why the jump in price this last week. All of a sudden some one thinks its much more attractive then it was last week.
     
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  16. lamecrocs

    lamecrocs Well-Known Member

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    it must be that some of the followers in this forum had led to the price increase.
     
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  17. Brumbie

    Brumbie Well-Known Member

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    Funnily enough it is on my shortlist of funds that I am doing further research into at the moment. CMA are going to get scratched only because I have lent them $500k @ 7% coupon on a senior secured bond and I do not want to over weight.

    Ticker Yield Div Payout Ratio Franking
    CWP 6.30% $0.18 56.00% 100.00%
    GDF 6.90% $0.02 118.00% 0.00%
    SGP 7.00% $0.14 68.00% 0.00%
    IDR 6.00% $0.04 87.00% 0.00%
    CIP 7.00% $0.05 96.00% 0.00%
    SDG 7.30% $0.06 53.00% 100.00%
    CMA 7.60% $0.04 95.00% 0.00%
    CRR 6.30% $0.05 94.00% 0.00%
    FRI 7.10% $0.03 90.00% 100.00%

    I am also looking at ETF's and have only really come up with.
    SLF - SPDR S&P/ASX 200 Listed Property Fund with an 8.47% yield at 61% franked.
    This is for Oz.

    This week I will be short listing US Reits and ETF's and then narrowing it down from there. Particularly interested in REITS with preferential shares (dividends get paid first) with a call date and call price. The US market is like going into Costco as opposed to a corner store in Oz for product availability and with better yields. Also will be checking out MBS type investments and unlisted funds. I will be taking out a 50% hedge of my exposure to USD with a USD Bear ETF (2-3x) and factoring in losing this money against the yield earning to get a comparative AUD yield figure.
    I have decided to hold 25% of my portfolio in property. I have also decided on 10% bonds. 5% commodities. 5% gold. And the rest in equities mainly focused on income, not sure at all in what type of asset at present. Annual re balancing.
    Everything is too expensive to go all in at present so I will be DCA'ing in very small lots to start.
     
  18. The Y-man

    The Y-man Moderator Staff Member

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    My take:
    As mentioned before, I am not a huge fan of Botannica (Swan st Richmond) - it's simply in the middle of nowhere while being in the inner city! Horrible transport etc.
    I also take the underlying land value into account - so the Wacol prop looks a bit risky to me
    Pikenba is a dev/pre-lease so looks ok
    Box Hill is ok - expy land under it

    Overall - a bit risky, maybe ok for a small exposure. *VERY* low liquidity. ~ as I look at it now, less than $100k worth of units traded?

    The Y-man
     
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  19. Brumbie

    Brumbie Well-Known Member

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    I have been getting technical price alerts of a whole bunch of REITS in the past 2 weeks. All technically pointing to a 5-10% rally in price. Not sure what is going on but they are all moving up just as I want to buy in!!! CMA price target of $2.58. Support at $2.39. Good buy!! Don't worry when I buy the price will drop and you are OK with CMA because I have excluded it.:mad:
     
  20. Brumbie

    Brumbie Well-Known Member

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    If I may ask do you use margin lending? If you do what are your/banks investment parameters to be met to actually use it. I don't know much about it apart from you really need to know what you are doing.
     

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