Goodman Property Trust

[RRR]

This inherent conflict of interest is the reason why I exited GMT! GMT is a quality stock, but we do have other LPTs with internalised management!

[Beagle]

This inherent conflict of interest is the reason why I exited GMT! GMT is a quality stock, but we do have other LPTs with internalised management!

You're absolutely right however when you look at the extremely high price ARG and KIP to name just two examples paid to internalise their management, the ongoing debt burden imposed on those entities to fund the buy-out and then add in the ongoing cost to manage the property themselves is there really all that much in it in terms of net benefit from internalisation ? I maintain there isn't much in it and at the end of the day investors are better to focus on the quality of the portfolio, the quality of the management and future prospects.
Whether GMT have received quality management in this instance is an open question. VHP is an example of a property trust that also has external management but due to its performance nobody seems to be making much noise about the management issue in regard to that stock. Whether internal managers of ARG, KIP and others do a better job than their previous external managers is also an open question. Internalising management removes any potential conflict of interest, no question about that.