52 replies to this topic

[Goliath]

Interesting read on Moneyweb today:

 

http://www.moneyweb....erty-exposure-2

 

Sure property won't give you 30% or more return per year, but currently if you take Arrowhead B for instance, with current share price of R6,25 and dividends around 53c for the past year, you get roughly around 8% return on your investment just in dividends excl capital appreciation(which currently not gonna happen as the market runs) which still in my books not bad, or am I missing something here?

 

Edit: when others are fearful, be greedy.. (hmm, who said that first here on sharenet, can't remember..)

Edited by Goliath, 03 February 2014 - 09:57 AM.

[yusufm]

 I'm very heavy in property at moment so definitely hurting, wish I could've topped them up now!

We in the same boat mate 

[Goliath]

Pain for sure, but I think the bond market has discounted at least another ½% repo rate increase. In view of that I think 

further downside in local listed property will be limited. Offshore property counters like RPL and NEP are great Rand Hedges

and actually went up a little today. 

It's so unfair, this close correlation between bonds and listed property. Take RES, which released a trading statement a few days ago

anticipating a 17% - 19% increase in distributions compared to the 6 month period a year ago.

 I'm very heavy in property at moment so definitely hurting, wish I could've topped them up now!

[yusufm]

http://www.sharenet....29152900&seq=30

 

Capital Property Fund - Provisional Summarised Audited Consolidated Financial Statements For The Year Ended 31 December 2013

 

Current Market Price: 970cps

 

NAV: 1031cps

Discount to NAV: 61/1031*100= 5.92%

 

Earnings per Share: 238.12cps

HEPS: 163.34cps

PE ratio: 970/238.12 = 4.07

 

Distributions per share: 75.62cps

Distribution yield: 75.62/970*100= 7.8%

 

(Self-compiled the ratios and extracted figures from results, so may be errors in my calculations)

 

So, it has basically a dividend yield of 7.8%, not bad at all. That alone justifies the share to trade at a premium to its NAV and not a discount which it is currently doing (5.92% discount). 

But this is now the most incomprehensible part: Its PE ratio is 4.07. You'll be hard pressed to find any other dividend paying company that is trading at such a low PE currently.

 

From a purely fundamentals viewpoint, I would say that it should be trading at a PE of 8 or more which is more than double the current share price. 

This is happening with other Listed Property Companies as well (e.g. RDF, GRT, etc) because of its link to the bond market, and changing interest rate, but these companies are fundamentally excellent and their current share prices just don't add up.....

[Moonraker]

Saw a lot of the Property Companies prices go down a bit, wonder how today's rate increase will effect on these share prices further..?

 

Added some Arrowhead B shares to portfolio, watching Redefine and Growthpoint..

Pain for sure, but I think the bond market has discounted at least another ½% repo rate increase. In view of that I think 

further downside in local listed property will be limited. Offshore property counters like RPL and NEP are great Rand Hedges

and actually went up a little today. 

It's so unfair, this close correlation between bonds and listed property. Take RES, which released a trading statement a few days ago

anticipating a 17% - 19% increase in distributions compared to the 6 month period a year ago.

[Goliath]

FFA definitely looks good after todays trading statement, big increase in distributions. Going to do some more research but it looks good at 1400c. I would appreciate your views on it if you have the chance 

 

Saw a lot of the Property Companies prices go down a bit, wonder how today's rate increase will effect on these share prices further..?

 

Added some Arrowhead B shares to portfolio, watching Redefine and Growthpoint..

[yusufm]

Not familiar with CPL.. Gonna add some RDF tomorrow, also might add some to my MIX stocks as the exchange could boost them as it currently sits.. Me thinks!

FFA definitely looks good after todays trading statement, big increase in distributions. Going to do some more research but it looks good at 1400c. I would appreciate your views on it if you have the chance 

Edited by yusufm1, 28 January 2014 - 05:07 PM.

[Goliath]

Not familiar with CPL.. Gonna add some RDF tomorrow, also might add some to my MIX stocks as the exchange could boost them as it currently sits.. Me thinks!

[yusufm]

Little bit of a dip, might get in if it goes down even further, tempted.. will need to sell a kidney or something but will manage

 

 Bought at 900c this morning

Also have a long on CPL at 975c and looking for a GRT position at 2250c

[Goliath]

RDF trading very close to NAV as opposed to other property shares which are trading between a 30-50% premium.

It's my punt, followed by GRT at sub-2400c

 

Little bit of a dip, might get in if it goes down even further, tempted.. will need to sell a kidney or something but will manage

[yusufm]

RDF trading very close to NAV as opposed to other property shares which are trading between a 30-50% premium.

It's my punt, followed by GRT at sub-2400c

[MrDividend]

SA prop market had a quite 2013 but showing some signs of recovery. Personally I like shopping centres VS office/ industrial. And prefer the "super regional" shopping centres. For me Hyprop (cent. city) Growthpoint (water front) - of course the both have other centres, but those are gems.

 

Overseas I have done very well with Redefine International - decent divi in pence. has run VERY hard in the last few weeks - so might not be an ideal time to buy.

[Future Warren Buffet]

Hi guys

I am quite keen on investing in the property sector because there are quite a few advantages. ie. Relatively safe investing; Dividends that are free from taxing etc.

Is this the right time to go in on property and also, if it is the right time, which property stocks would be the best to buy?

 

Future Warren Buffett