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Joshuatree
07-02-2013, 09:07 AM
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

Joshuatree
09-02-2013, 12:24 PM
Airing this one more time in case some didn't see it. cheers JT

steve fleming
09-02-2013, 06:14 PM
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.

steve fleming
10-02-2013, 01:49 PM
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.

Joshuatree
11-02-2013, 11:49 AM
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

steve fleming
11-02-2013, 08:53 PM
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.

Joshuatree
11-02-2013, 09:57 PM
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 ?

Joshuatree
12-02-2013, 11:25 AM
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:eek: Timing is everything

Joshuatree
12-02-2013, 05:39 PM
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

steve fleming
19-02-2013, 11:10 PM
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-item?S=GOZ&E=ASX&N=385859

Joshuatree
19-02-2013, 11:37 PM
Thanks mate.

Joshuatree
22-02-2013, 11:35 AM
Got a top up today @ 47c very nice.

777
22-02-2013, 11:49 AM
After tax considerations are the Aussie ones any better than the listed NZ property stocks.

Joshuatree
22-02-2013, 04:54 PM
777 , nearly 10% div atm and that is increased if your $A div is converted to $kiwi , maybe .8 of 1% extra.. Read Steves post re 9 posts back re prop trusts in Aus dont pay tax and give distributions. Imp credits help us here of course. cheers

777
22-02-2013, 05:44 PM
Your yield cannot increase simply changing the currency. Yield is A$ div against A$ share price and NZ$ equivalent div against NZ$ equivalent share price. Same result.

As a large holder in NZ LPT my net yield is 5.46% which grosses up to 8.14% at 33c tax rate. No currency risk and they are mostly taxed under the PIE regime. Your 10% after tax (projected) is going to net you 6.7%. Or you may have to be taxed under the FIF system which may in fact reduce your tax liability.

I don't see much point in going for dividend yield investments off shore. Growth stocks of course are a different beast.

Joshuatree
22-02-2013, 06:18 PM
Will have to agree to disagree mate you stick with what you believe, was happy to share with you.

777
22-02-2013, 07:16 PM
Yep. Each to the own. Cheers

RRR
22-02-2013, 07:33 PM
I stick to nz LPTs for the reasons mentioned by 777.

kiwi2
04-03-2013, 09:50 PM
Hi 777 and RRR,
Now don't be too harsh on me as this is my fist post :-)
But I do want to invest in NZ property owning companies.

Can you please tell me what are "NZ LPT's" to which you refer ?

Where do I go to find out what is available here in NZ.

Thanks.

Joshuatree
05-03-2013, 08:55 AM
Go to the nzx stock exchange website and trawl thru all the listed prop companies for starters cheers jt

RRR
06-03-2013, 07:22 PM
KIWI2

NZX.com - the place to look for listed property trusts.
KIP, GMT, ARG, VHP, NPT, PFI etc.

Welcome to sharetrader

kiwi2
06-03-2013, 10:22 PM
Thanks guys, found them all....now to read up on them.

Joshuatree
25-03-2013, 11:58 AM
TIX T/H today for a cap raise. If they use it to reduce debt to say 45% and buy another building or two im keen on spp depending on what price it is at. Love some aussie diversification exposure to prop and the (xtra) interest i get bringing it back to $NZ.

Joshuatree
26-03-2013, 11:55 AM
Great !! TIX equity raising @ 45 c reduces LVR from 57% to 47%., full repayment of unsecured notes. 1 new unit for each 1.6 units. Dist guidance of 10% $A :). Good all-round.

Joshuatree
26-03-2013, 09:13 PM
Thanks :t_up:KW ,its on my watch list and a mate has loads but id forgotten about it, will have a squizz again. Went to their theme parks near Brisbane last year with my 12 year old, but they may have sold these.Cheers JT

Joshuatree
26-03-2013, 11:32 PM
Cheers KW.Just gone ex and re 8% div. No posts about it, like these quiet stocks. Have been in AEU and CMW both excellent should have just held them.

Joshuatree
27-03-2013, 10:15 PM
Come the new tax year (in NZ) i will be seriously looking to add AAD and maybe AZF. Will have a squizz at GHC and ENV. Hard to keep up with you KW;). I too am looking to build more income, with some growth and less risk as well as some Premier Growth stocks like BRG, RMD, ILU (best in breed for the longterm) to balance more the riskier gold and a few resource stocks i still have. Thanks JT

steve fleming
17-04-2013, 09:12 PM
Some thoughts on small cap property stocks from Eureka Report:

a few opportunities do exist at the junior end of the property sector if investors are prepared to do some digging, noted Atchison.
“Small caps do offer better value but are less liquid and [some] are small cap because of poor performance,” he said.
“The rule of thumb for small caps – make sure you do your homework. Do your financial analysis and be wary of gearing.”
Other things investors should be looking out for include the quality of the tenants, the duration of the leases, conditions for rental increases and whether distributions are fully covered by cash flow.


One stock in this space that stands out is Carindale Property Trust (CDP), which owns the Westfield Carindale mall in Brisbane.
“We have been pretty light-on in terms of developments [by shopping centre owners] in the last five years, partly because of the lack of funding,” said Cartledge.
“But there are some good developments going on or starting, and Carrindale is one that has just finished and is fully leased.”
While the stock has raced up close to 30% over the past 12-months, compressing its expected distribution yield to around 5%, it’s still priced at a discount to its net tangible asset value.
CDP is trading at an 11% discount to its net asset value and its 2013-14 forecast enterprise value to earnings before interest, tax, depreciation and amortisation (EV/EBITDA) multiple of 17.3 times is 7% below its five-year average.
The $394 million market cap stock gained 2 cents on Tuesday to close at $5.59.
Another interesting small property stock to watch is Australian Education Trust (AEU), even after the childcare properties owner chalked up a stunning 45% total return over the past year.
The stock is still expected to deliver a decent yield of around 7%, which is around 2.5%-3% above the 12-month term deposit rate.
Further, the childcare industry outlook is relatively robust, rents are indexed to the consumer price index (CPI), and the weighted average lease expiry is close to nine years.
The stock added 2.5 cents to $1.44 on Tuesday.


Read more at Eureka Report: http://www.eurekareport.com.au/article/2013/4/17/small-caps/property-gold-small-caps-build-momentum#ixzz2QiL2YJxn

Joshuatree
13-06-2013, 08:06 PM
CMW coming back to re 95c after instos paying $1 for placement shares.Retail component fully underwritten, but wont be taken right up. What will the underwriter do dump on mkt?. Great stock with good div.

Joshuatree
18-06-2013, 11:57 AM
TIX raises min of $24.3 mill with inst placement to buy 2 more buildings

Increases WALE to 5.7 years

Transaction NTA neutral
Confirms prev guidance of 4.5cpu div
and op earnings of 4.9cpu
Consistent rental growth thru fixed rental increases of 3.5%
Quality tenants on long leases

Minimal cap exp given age and/or recent refurbishments
Located in established ind precincts with good access to main arterial rds

Portfolio increases to $337million, mkt cap $189 to $190 mill
Increased liquidity and mkt cap positions fund positions the Fund towards index inclusion
Gearing 46.9 - 47%

NTA 48c Placement @50 to 51c

steve fleming
18-06-2013, 08:09 PM
New listing Arena Childcare Fund (ARF)

Owns 172 childcare centre properties

low gearing (10%)

Good yield (8%)

steve fleming
19-06-2013, 08:56 PM
Where did you find that?

http://stocknessmonster.com/news-item?S=ARF&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.

NZSilver
14-07-2013, 09:48 AM
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

baller18
20-07-2013, 09:28 AM
Picked up some of these for my dividend portfolio. It will be interesting to see what their future plans are - whether they remain a rock steady REIT like AEU with a good dividend yield, or they go on the acquisition/development path like GEM in which case some good capital gains should follow.
Where can I locate the prospectus? been trying to find it online, nothing coming up...

baller18
20-07-2013, 09:30 AM
Got it! thanks!

baller18
20-07-2013, 10:10 AM
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%...

baller18
20-07-2013, 10:24 AM
Picked up some of these for my dividend portfolio. It will be interesting to see what their future plans are - whether they remain a rock steady REIT like AEU with a good dividend yield, or they go on the acquisition/development path like GEM in which case some good capital gains should follow.
Hey guys, im still quite new to investing, so some of my questions might seem silly.
If the gearing ratio increases to 35% to 40% doesnt it mean they will be increasing their debt as well?

baller18
20-07-2013, 03:00 PM
Yes. Debt can be good - if you borrow at 6% to buy something that returns 10% you are ahead of the game. In commercial real estate this is the norm, its only idiots in the residential market who borrow at 6% to buy something that returns 3%.
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!

fungus pudding
20-07-2013, 03:54 PM
Yes. Debt can be good - if you borrow at 6% to buy something that returns 10% you are ahead of the game. In commercial real estate this is the norm, its only idiots in the residential market who borrow at 6% to buy something that returns 3%.

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.

baller18
21-07-2013, 04:29 PM
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?

steve fleming
21-09-2013, 07:21 PM
Following on from TIX:

http://www.switzersuperreport.com.au/2013/new-ipo-australian-industrial-reit/

"Most listed REITS are either commercial or retail property focussed – there is only one other “pure play” industrial property fund, the 360 Capital Industrial Fund (ASX Code TIX). This fund was listed in December 2012 (previously an unlisted fund that underwent a compliance listing), and compared to the Australian Industrial REIT (AIREIT) it:


is bigger. Market cap $195 million versus $129 million for the AIREIT, property portfolio $340 million versus $175.8 million;
is more geared. Although debt is being reduced, gearing is 46.9%;
has a more diversified property portfolio (by region and number of properties – 20);
has a WALE of 5.1 years versus 6.0 years for AIREIT;
has a higher forecast distribution yield in 2013/14 – 8.85% per annum with a higher tax deferral (based on 18.6 cpu and a current unit price of $2.10); and
is trading on a higher premium to NTA. Based on a unit price of $2.10, a premium of 8.2% to the 30 June NTA of $1.94.

So on this market comparison, the pricing is broadly in line. With its lower premium to NTA of 3.5%, higher WALE and lower gearing, the Australian Industrial REIT is arguably lower risk than the 360 Capital Industrial Fund. However, it is a small fund with a lower distribution yield, which is only partially tax advantaged – so it is no steal either."

cloggs
04-01-2015, 12:40 PM
Rather than starting a new thread I found this one. Hoping to get some suggestions on Aussie REITs.

In the last few weeks I've doubled my holdings in TIX and ARF. Earlier in the year I did the same with GOZ, and I got back into UOS a couple of weeks ago.. I think REITs are a safe place to be at the moment with all the mixed messages we're seeing about the near (2015) future.

Any suggestions about others. I've been trawling through the list of AREITs on the ASX website (follow this link http://www.asx.com.au/products/etf/managed-funds-etp-product-list.htm) and other than ANI not finding anything that takes my fancy.