Listed Property Trusts

[Sideshow Bob]

LPT's have had a great run in terms of price in recent times with low interest rates, rising asset values and yield compression. Interest rate yield curves are starting to steepen, and there is starting to be some acknowledgement that potentially are at the bottom of the cycle for interest rates. Given this, prices could start to come under pressure, and see a correction.

On the other hand, these are great for clunking out dividends and cashflow on a quarterly basis, most operate DRP's, and are PIE's for taxation. (Hmmm I like PIE's - mince & cheese). Relatively stable and believe have a place in a balanced portfolio. Generally well insured and professionally managed - so have been able to sail through any earthquakes etc largely unaffected thus far.

Personally I have done well out of LPT's before current interest rate lows, and bought as a low-risk, bottom draw investment. However sold GMT, KPG, VHP & PCT this week to fund a property purchase.

The other thing, is just beware of the advisor trying to churn the portfolio for generation of fees! Sorry, always a cynic!

[fungus pudding]

Sorry, always a cynic!

Never ever be sorry about that.

[unhuman]

Can't really provide a qualified opinion on whether your adviser is correct in wishing to sell them without knowing your overall portfolio.

In of themselves they are reasonable investments to hold.

[Lewylewylewy]

I wonder how much of the dividends are paid out of capital gains. If that's the case, these could be a bad play if property prices stop going up

[troyvdh]

Can anyone guess which listed property entity has performed the best is the past 20 years...just asking.

[Lewylewylewy]

My guess would be VHP, but then kpg in the regular category.

[herbert240]

Thanks guys for advice/comments guys...think we will compromise and keep ARG

[troyvdh]

I believe it to be PFI.Over 20 years about 9 percent pa divs paid 1/4.PFI is a company (one of very few) that has remained..well ...what it is-it owns Industrial property only.Ramping ...probably..hold about 20k.

[Beagle]

Thanks guys for advice/comments guys...think we will compromise and keep ARG

I hold GMT which as mentioned previously I perceive to be slightly less risk due to concentration of portfolio is low earthquake risk zones but having said that took a small position in ARG again on Friday at market close, $1.015.

This is slightly below asset backing and they are talking about the possibility of a slight increase in the dividend next financial year so I am expecting a fully tax paid PIE return of 6.2 / $1.015 = 6.11%, equal to a gross return of 9.12% for people on a 33% tax rate so I think they're a pretty good hold at that price for yield.

[troyvdh]

Roger ...are you taking the Micky...with all due respect....are you a trader or investor....like building wealth....just saying...