ARG - Argosy Property.

[ronaldson]

Valuation loss rate increased quite a bit in HY2. We may not have seen the bottom in the Wellington office market in particular yet either.

While we are told about the relationship between sales price of those properties divested and the most recent book valuations there is never any analysis vis a vis the original acquisition price and yield achieved on that during the holding period, and the actual divestment price net of costs, so we holders can see the real outcome achieved on our behalf. I wonder if even Board members actually know.

These companies tend to buy at cyclical highs and then sell at cyclical lows for debt management purposes or even more specious reasons. Does anyone think these entities outperform a traditional buy and hold single or multi property investor over a timeframe of years?

[kiwikeith]

Valuation loss rate increased quite a bit in HY2. We may not have seen the bottom in the Wellington office market in particular yet either.

While we are told about the relationship between sales price of those properties divested and the most recent book valuations there is never any analysis vis a vis the original acquisition price and yield achieved on that during the holding period, and the actual divestment price net of costs, so we holders can see the real outcome achieved on our behalf. I wonder if even Board members actually know.

These companies tend to buy at cyclical highs and then sell at cyclical lows for debt management purposes or even more specious reasons. Does anyone think these entities outperform a traditional buy and hold single or multi property investor over a timeframe of years?

They probably do not outperform a single property investor due to significant overheads. Argosy, for example, has 16 employees earning over $200k a year. A single property investor probably does all the property management activities himself in his spare time. However the listed property companies do provide the benefits of diversification (ie risk spread over several properties), liquidity (ie you can sell your shares in less than 5 minutes) and convenience (ie you wont be phoned up at 8pm on a Friday night to be told the roof is leaking.).