I think with these sort of things you need to have a look at the total return and not get too fixated with yield.
PDS states that in 2014 the value was $1 and five years later they're raising new capital at $1.05.
Few thoughts.
1. If the level at which they are raising funds is representative of the net tangible asset backing of same this is a pitiful performance compared to the NTA growth of say GMT an active property developer and you could very easily make the case the vastly more experienced team at Goodman Property Trust who's shar price has nearly doubled over the same time have added substantially more value through their management and development activities. ARG another example and their share price has climbed 45% over that time. PFI another example and there are many more.
2. The question must be asked, why has the net tangible asset backing apparently gone backwards, (in real inflation adjusted terms) over the last 5 years since the inception of this fund when all the listed companies have done vastly better over the same timeframe ?
3. What does this suggest about the calibre of the management of this company and their property selection processes and criteria ?
To me management have shown woeful underperformance in terms of even keeping the net tangible asset backing the same in real inflation adjusted terms, let alone matching the listed company benchmark. The sum total of management's expertise since this was formed in 2014 so badly underperforms the market this suggests to me they have bought properties primarily for yield with little or no consideration given toward capital growth prospects.
Forecast are one thing, but as a bean counter I have learned to put far more stock on the long past track record of a company and while the yield has been okay, their track record of lack of growth suggests this is a dead end yield trap to me.
Notes. According to the reserve bank inflation calculator $1.00 in 2014 should presently be worth $1.06 based on general inflation and $1.42 based on housing inflation.
https://www.rbnz.govt.nz/monetary-po...ion-calculator thus managements long term track record is most unimpressive.