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Any LPT / REIT investors?

Discussion in 'Real Estate Investment Trusts (A-REIT / LPT)' started by Simon Hampel, 17th Sep, 2016.

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  1. Simon Hampel

    Simon Hampel Co-founder Staff Member

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    Does anyone here like Listed Property Trusts (aka Real Estate Investment Trusts)?

    I have exposure to this sector through one of the funds in my SMSF (CFS Wholeale Geared Global Property Securities fund), which invests in REITs around the world and has done quite well for us in the post-GFC era (this sector was really hammered during the GFC).
     
  2. unwillingwillis

    unwillingwillis Member

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    I have been buying them since the GFC and they have treated me very well. GHC being my best holding buy a country mile. The sector as a whole is trading at a premium to NTA. I only see one or two companies offering reasonable value ATM. I prefer to purchase LICs at a discount to NTA as I believe these offer better value.
     
  3. twisted strategies

    twisted strategies Well-Known Member

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    my REIT adventures have been a mixed bag some good , some not so impressive ,

    but i need income after 2020 and some of the REITs should still be doing that , but some are busy growing via DRP currently ( BWP , CMW , ABP and SGP )

    part of a strategy NOT the whole strategy ( for me )
     
  4. coolcup

    coolcup Member

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    I have a fair bit of exposure to this sector as I know it quite well. It feels like it is fairly expensive at the moment, but some REITs are screening as relatively inexpensive on my radar such as Westfield (WFD) and Hotel Property Investments (HPI). A bit of a turning point at the moment if rates start heading up though. How are you feeling about the sector right now?
     
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  5. austing

    austing Well-Known Member

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    NO, beware the yield trap:

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  6. twisted strategies

    twisted strategies Well-Known Member

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    i always use ( historical ) P/E as a guide ( but not the only determining factor ).

    i look for 8% plus on my buying price , but will selectively average down in the dips
     
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  7. austing

    austing Well-Known Member

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    Trouble is what's the future growth on that 8%? That's the problem with many AReits, high yield now but low growth going forward. Classic yield trap. But fully understand we all have different time frames so it may work well for some.
     
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  8. twisted strategies

    twisted strategies Well-Known Member

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    fund managers live and breathe future P/E and growth , and i live for fund managers dumping shares that disappoint ( due to unrealistic expectations ) .

    some shares ( REITs in particular ) are abandoned at the first hint of poor outlooks ( even though we are looking at a probable bubble .)

    if the company/REIT is good and trading at a discount ( to my av. SP i am liable to average down , not a truck full but a useful buy and leaving reserve cash should the price drop further .

    obviously you have to be selective on targets like this ( my favourite is CMW for this play ) ,

    REITs ( like real property ) are long term plays for me .

    i also 'think outside the box ' classing RFF and INM as REITs