Listed Property Trusts

[macduffy]

In addition to the above there was a perception that the search for income-yielding stocks had pushed property/infrastructure/utility stock prices a bit too far. Higher interest rates, as well as adding to companies' costs also make fixed income assets such as bonds more attractive to investors.

[NZSilver]

How do you determine which property trusts to hold? What are the key metrics?

[BlackPeter]

How do you determine which property trusts to hold? What are the key metrics?

Just from the top of my head ...

Location - where is the property?
Diversification of location .. particularly given NZ's shaky grounds - you wouldn't want to hold all property in one center?
Diversification of tenants ... happy with the risk spread?
What is there long term vacancy rate (low is good)?
Are you comfortable with the fluctuation of the vacancy rate (did you like the numbers during the GFC)?
Do you like the return?

There might be more ...

[tim23]

Hold 2-3 yields are similar and great liquidity way better than unlisted property vehicles.

[Lewylewylewy]

Just from the top of my head ...

Location - where is the property?
Diversification of location .. particularly given NZ's shaky grounds - you wouldn't want to hold all property in one center?
Diversification of tenants ... happy with the risk spread?
What is there long term vacancy rate (low is good)?
Are you comfortable with the fluctuation of the vacancy rate (did you like the numbers during the GFC)?
Do you like the return?

There might be more ...

If they are a PIE or not.
Average weighted lease period remaining.
How agile they are (disposing assets that aren't working, smart buys, changing the business to suit demands)
Quality of property

I rate VHP and KPG as the best. VHP because I like the sector and the average lease remaining is something like 18 years, though I do think they are potentially exposed to government policy changes (although super low risk). KPG because they have good growth, but also because they're agile. They have a rental management side of the business that does well, so their management don't just sit there doing nothing and collecting a fee (*cough*...NPT...*cough*).

[tim23]

5% plus net is fine by me hold 15000 GMT and receive quarterly payment of about $250 so about $1000 net return on $19000 employed

[ExtremeHedge]

When was the last time the LPTs were trading below NTA in the main? Prospects of this happening again?

I noticed a couple dropped out of the PIE regimes to be Limited Companies only in the last few years. Why oh why would they do this if their investors now have to declare the dividends?

[fungus pudding]

When was the last time the LPTs were trading below NTA in the main? Prospects of this happening again?

I noticed a couple dropped out of the PIE regimes to be Limited Companies only in the last few years. Why oh why would they do this if their investors now have to declare the dividends?

I only know of Augusta who lost PIE status. Their funds business became a large part of their activities and as such no longer satisfied IRD requirements as a PIE.
Stride restructured and created a second company, Investore. stride has stapled shares which do not qualify as that is management income - Stride manage investore. So only a small part of total income is non PIE.

[NZSilver]

Hi Fungus and others share trader members, I have read some of your post before re property trusts, could you please offer me some guidance? for someone who has been investing in shares for a while, but now wants a simple "income stream" and an investment which is a bit more "set and forget (i know this is never tha case with any investment)" , how do you structure your portfolio of property trusts? How do you time your purchases? how do you select one property trust from another? have you had large periods of poor return? do you sell when interest rates change - increase/decrease? . At the moment i'm quite interested in ARG - simply as trading near/below NTA, debt around 35% of assets, I like office/industrial/retail mix. (especially their retail is more large scale buildings), and Auckland/wellington properties. Im also in the process of looking at stride but have had some mix messages in term of the managment structure.

[RTM]

https://www.nzx.com/companies/PFI/announcements/299217

Pleased to see this. Market seems to agree. For a change we are aligned.