Quote Originally Posted by Snoopy View Post
Nor, I have spent around a year researching this question. And never having invested in the property sector before, I don't have any attachment bias. I came to the conclusion that I should prefer 'big box' over 'office towers'. And 'commercial' over 'retail'. From what I have read there seems to be a shortage of good commercially zoned land around Auckland. So I started looking more closely at the property trusts that owned 'big box', 'commercial' properties with a bias to the Auckland region.

That lead me to 'Property for Industry' and 'Goodman Property Trust'. Both held the groupings of property I was after, but Goodman's was just way too expensive. So I had a look at PFI more closely. PFI has a very impressive history, a 30 year run of buying and managing 'Properties for Industry' without getting side tracked into other property fashions along the way. So I figured out the price I was prepared to pay for the PFI earnings stream and waited and waited, but.....it has never hit my mark.

You can read the conclusion to all my PFI workings here:
https://www.sharetrader.co.nz/showth...=1#post1043980

Then suddenly over the last six weeks or so, other opportunities in other sectors of the market with what I consider a better risk return ratio have come up. So the answer as to which of the big eight property trusts that is most worthy of your investment on today's market is ..... drum roll..... none of them. It was a somewhat painful decision for me to make, having invested so much time into researching the options. But if the risk return thesis does not stack up, sometimes it is best to walk away. And before you ask. yes I was modelling in the PIE tax advantages of property trusts, and the governments more to remove structural depreciation on buildings into my analysis

SNOOPY

P.S. Kiwi Income Property is a bit of a special case because they have morphed from being a property investor into being a property developer. I would suggest that the dividend is likely to reduce from current levels as they commit serious cash to developing Drury. It is a higher risk higher reward play than the others in my judgement.
They've been a property developer for a while
"The development is owned by Sylvia Park Business Centre Ltd (SPBCL), a subsidiary of Kiwi Property Group. The development is situated on 24 hectares of land, a large part of which is still to be developed as of the late 2000s. Kiwi Property acquired the land in two transactions in 1995."
https://en.wikipedia.org/wiki/Sylvia...rse%20breeding.