Originally Posted by
ronaldson
The listed property companies overtrade in my opinion. They are always selling something that once upon a time was something they desired to buy, and they overpay when buying. The return to shareholders would be superior if they trimmed overheads to a minimum and adopted a buy and hold strategy, relying simply upon rising rental streams and incremental capital gains, without development risk.
There are advantages in the ownership of multiple properties/quality tenants and easy entry/exit v the single building syndicate, but the latter holds long term and ultimately the capital gain received is superior to share price gains which don't ever quite seem to materialise and where any price changes heavily reflect interest rate cycles rather than the listed entities operational performance.