New listing Arena Childcare Fund (ARF)
Owns 172 childcare centre properties
low gearing (10%)
Good yield (8%)
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New listing Arena Childcare Fund (ARF)
Owns 172 childcare centre properties
low gearing (10%)
Good yield (8%)
http://stocknessmonster.com/news-ite...E=ASX&N=390875
Arena REIT was admitted to the Official List of ASX Limited on Thursday, 13 June 2013.
Official Quotation of the following securities will commence at 12:00 pm A.E.S.T. on Thursday,13 June 2013 on a deferred settlement basis.
Anymore thoughts on Arena REIT? Looks quite good.
I have never invested in a REIT.
Do property stocks have imputation on divs? What are your thoughts regarding divs and tax with aus property stock?
Thanks
Got it! thanks!
Don't you guys think ARF has a quite a substantial risk as more than half of their portfolio is tenanted by Goodstart?
67.8% is from Goodstart... close to 70%...
Thanks so much for the reply, yes i was looking through their prospectus and it sounds promising.
They have assets of 243 million and a market cap 212million which means just the asset value will give a value of each share at $1.14 without taking account into profits. Which means at the current price, it is definitely worth buying.
Is this a right calculation ive done?
Thanks heaps in adnvace!
And it's not just return/yield. Borrowing gives leverage to buy more expensive property. Better to own a million dollar property which doubles in value to 2 million, than a half million dollar one that doubles to a million. The downside being it also amplifies any drop in value, but it's the borrowing that makes investors wealthy - not the yield on their input. The spectacular crashes and bankruptcies are when someone became a little over-enthusiastic about borrowing.
Thanks heaps,
They have assets of 243 million and a market cap 212million which means just the asset value will give a value of each share at $1.14 without taking account into profits. Which means at the current price, it is definitely worth buying.
Is this a right calculation to assess the assets in correlation to the share price?