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  1. #1
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    Default Best Property Stock with Good Yield In Aus

    Hi my top picks based on advice and history are CMW re 8% div, AEU 7.6%, GHC 7%. None of these have franking credits. FKP is in the future Div category with s/p appreciation. Plan to make use of the high $NZ. What are your best picks atp appreciate your sharing. cheers JT
    Last edited by Joshuatree; 07-02-2013 at 09:09 AM.

  2. #2
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    Airing this one more time in case some didn't see it. cheers JT

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    ? steve fleming's Avatar
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    Quote Originally Posted by Joshuatree View Post
    Airing this one more time in case some didn't see it. cheers JT
    JT

    Might be worthwhile checking out TIX - 360 Capital Industrial Fund

    Only listed in December.

    4.5cpu forecast distn for FY13, putting it on a 10% yield.

    Reasonably long WALE at 5 years, high occupancy at 97.5%.
    24 properties across Eastern Seaboard so good diversity.
    Industrial (logistics/distribution) is a pretty good sector to be in.
    10% discount to NTA, so not a huge value play though.
    Share prices follow earnings....buy EPS growth!!



  4. #4
    ? steve fleming's Avatar
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    Quote Originally Posted by Joshuatree View Post
    Hi my top picks based on advice and history are CMW re 8% div, AEU 7.6%, GHC 7%. None of these have franking credits. FKP is in the future Div category with s/p appreciation. Plan to make use of the high $NZ. What are your best picks atp appreciate your sharing. cheers JT
    JT- just on franking credits, I think you 'll find all property trusts divs are unfranked, as trusts by their very nature, don't pay tax and pay distributions rather than dividends.
    You will find some stapled trusts (with property management/development arms) pay dividends from their corporate (non trust) earnings.

    The best you will get is a tax-deferred proportion of the distribution (arising from differences in accounting/tax treatment of depreciation) which transfer an income tax liability to a capital gains tax liability.
    Share prices follow earnings....buy EPS growth!!



  5. #5
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    Thanks Steve, im not good on details like that. Have had a squizz at TIX int. I est at just over half are recent/modern buildings built up until 2010 the rest older but many with high walls excellent access, locations seem good/desirable etc.. Agreement with bank to keep LVR to less than 55% by end 2013 , less than 50% march 2014 currently re 60%, 67.5% if 65 million notes included. They have reset a loan of $!55 million @ 5% saving $2.8 million a year in int or 1.5c per share per annum.. .But have some notes re $27 million? @ 12% which they have tried to buy back ; a small acceptance. MER of 0.87% Simple capital structure. 61% lease expiry 2017. Average cap rate (div yield?) 9.08%. Am i right that Ind prop valns in Aus have stabilized/ bottomed? Or too early to call. Cheers JT
    Last edited by Joshuatree; 11-02-2013 at 10:02 PM. Reason: grammar as usual ;)

  6. #6
    ? steve fleming's Avatar
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    Given the ever increasing gap between bond rates and property yields, i think it is fair to say that for quality property at least, valuations have bottomed.

    Expect to see cap rate compression (ie valuation uplifts) as prices are bid up to narrow that yeild differential.

    However, as Mirvac announced the other day, there are still issues for poor quality property,so its a matter of focusing on the basic fundamentals (strong tenants. long WALEs and low vacancies).

    TIX seems to offer that IMO.
    Share prices follow earnings....buy EPS growth!!



  7. #7
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    Hi Steve.. What about the LVR; it seems really high with LVR of 50 being the suggested max for a reasonably safe prop play these days? The risk /reward one has to take to get 10%. With prop values going the right way or having seemingly bottomed at least you're comfortable with that margin ?

  8. #8
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    Well bugger me whilist ive been researching this stock theyve come out with an announcement TODAY and the s/p has moved up. Didnt know results were so close!!!; and thanks Steve anyway. The high LVR was holding me back alittle on entering , everything else looked good . LVR now down to 57%!!!! SA LA VIE Timing is everything
    Last edited by Joshuatree; 12-02-2013 at 11:26 AM.

  9. #9
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    Got some today after all thanks Steve,price dropped back after initial flurry to 46.5c my div income on the way up. , yass! 4.5c div a year= 9.67% yield.
    Any one with a prop play out there to match it ? cheers JT

  10. #10
    ? steve fleming's Avatar
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    Don't know if you are still after another property play JT, but GOZ had a strong result yesterday.

    Big move today, but still on a 7.5%ish yield.

    "Directors reaffirm distribution guidance for GOZ stapled security holders for the half year ending 30 June 2013 of 9.3 cents per stapled security providing a total distribution for FY 2013 of 18.3 cents per stapled
    security which is expected to be 73% tax deferred and 7% tax free. "

    Its outlook statement is worth a read for a good summary on where A-REITs/property valuations are at

    http://stocknessmonster.com/news-ite...E=ASX&N=385859
    Share prices follow earnings....buy EPS growth!!



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