Listed Property Trusts

[macduffy]

My own, somewhat cynical view of these companies is that their main interest is in growing the portfolio to increase the management fees for the management companies who control them.

May not apply universally but most managements are paid on the basis of the bigger the value of the portfolio, the bigger the fee. Every encouragement then to borrow and to issue capital to achieve this, not necessarily to the advantage of existing share/unit holders.

[Billy Boy]

I agree Mc duf, some what. DNZ good example
But where else can you get 9 - 10% paid qrtly after tax ?? with sp at a discount to nta.
BB

[macduffy]

I agree Mc duf, some what. DNZ good example
But where else can you get 9 - 10% paid qrtly after tax ?? with sp at a discount to nta.
BB

Granted, B B. They just don't appeal to me. I'd like to see the interests of share/unit holders and management more closely aligned.

[RRR]

My own, somewhat cynical view of these companies is that their main interest is in growing the portfolio to increase the management fees for the management companies who control them.

May not apply universally but most managements are paid on the basis of the bigger the value of the portfolio, the bigger the fee. Every encouragement then to borrow and to issue capital to achieve this, not necessarily to the advantage of existing share/unit holders.

Hi macduffy-you are spot on. Managers for managers...ING is a good example-bought many properties using debt and now selling to repay that debt!! But i do hold GMT/IMP and ING-not a lot though. Plus points are good dividend yield(PIE entity) and they offer DRP at a discount. Hoping for a price drop after may 20th-i might get some more.

[Billy Boy]

These managers seam to be a sticking point with many, including myself.
ING (now owned by ANZ and about to get a name change) I believe are
going to operate their own management team.
Why cant the others follow ? why cant they employ our own team. After
all the "management teams" do.
BB

[troyvdh]

Im being lazy here....re this lowering of the "PIE" tax to 28 %...what was the rate before.....

[777]

Lazy for two years then. 30%

[Stylerz]

Any thoughts on how many years its going to take the main property trusts to stabilise and hopefully eventually increase their dividends.?

Just reading the ING report and it looks like they are again going to slash their dividend another half a cent. Im sure also the deprciation law is going to add to this problem.

Thanks in advance

[Billy Boy]

Any thoughts on how many years its going to take the main property trusts to stabilise and hopefully eventually increase their dividends.?

Just reading the ING report and it looks like they are again going to slash their dividend another half a cent. Im sure also the deprciation law is going to add to this problem.

Thanks in advance

It would appear that most of the LPT's will drop about .5 of a cent as a result of tax changes.
Now I feel is when they should drop the DRP system and do a buy back.
KPF are already doing a buy back.
From here we will see a revaluation slowly upwards because of the inflation factor.
cheers BB

[777]

KIP are also doing a buy back.