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includes some opinions on CLW by professional investors
Nice post VC, and the pics.i agree, I don’t want to be to heavy in office property, it’s good to have some good high quality offices in the portfolio.
crack open that CLW half year results presentation again and have a look at the back where they break down their portfolio by type and give the property valuations, cap rates, and WARR(weighted average rent reviews), it’s really interesting to compare, the office property has higher cap rates and larger rental increases than the other sectors, so it’s good to have some in there.
check out the Arnotts factory they own, a 28year lease with CPI + 0.5% rental increase every year, that’s a lot better than a bond, you can’t tell me 28 years that property won’t be worth more than it is today, and per year income increases compounds too.
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Yes this nails the big picture.Valuations are not to important in the short term, they move around with interest rates, I thing I like love about CLW is the fantastic property portfolio, and the steady rental increases built in to their leases.
All thats happened is interest rates have come up fairly quicking, obviously faster than the rental increases have come in which has caused their dividend to drop from 7 cents to 6.5 cents, and the valuation of the properties to come down reflecting that.
But, if you stand back and look at the big picture, The rental increases will keep coming year after year, (look at the last few pages of their half year report presentation for a break down), but interest rates can't keep rising. So it will all balance out and the income will be great, and the valuations will rise over time with inflation once this temporary re adjustment of interest rates is done.
I hold, and will probably be holding in 20 years time, its a great little income generator in my portfolio.
i hold , but i can always try to bring the average downDividend yield 7.5% not good enough for you Divs?
What can you get on the ST money market?
Not as much as that.
Easing bias from here.
The elephant in the room.oh oh oh and don't forget the tax on that income
it isn't as rosy as it looks in investing world
i try to build at sensible intervals and at sensible prices ( unless the carnage is knee-deep )@divs, CLW, I'm done
well an associate ( not the trader buddy ) was planning a 'reverse index strategy about two weeks back , this guy is more investor than trader but he does play some short/mid term trends with some successDoesn't look like carnage at this stage, but looks can be deceptive as we all know. To be safe, I prefer to treat it as a traders' market, divs.
Little nibbles at the price price pay dividends. If I have to hold something, this is one I'd like to think I can hold. Very often I can't stick to my plans and promiseswell an associate ( not the trader buddy ) was planning a 'reverse index strategy about two weeks back , this guy is more investor than trader but he does play some short/mid term trends with some success
traders' markets can be good as well ... but little nibbles for me ( most of the time )
yeah , but how much is too much , i hold several rival REITs as well and some in reasonable-sized parcels ( for me )Little nibbles at the price price pay dividends. If I have to hold something, this is one I'd like to think I can hold. Very often I can't stick to my plans and promises
i am looking for survivors that will pay income , most of the timeThe REITs are good until they aren't, enjoy while that lasts
both @eskys and i bought today ( apparently during the open )from another thread .. eskys , it belongs here !
When the US reported a cooler-than-expected inflation print last Thursday – which drove a sharp downward move for bond yields – I kept thinking about this line from an old Morgan Stanley report:
“Charter Hall is by far the most linked to bond yields. Its P/E multiple has a -0.77 correlation vs. Australian 10 year bond yields, and -0.68 vs. US 10 year Treasury yields … This means that as bond yields decline, the multiples of these two stocks generally re-rate upwards."
Charter Hall was one of the best performing REIT stocks in the past week or so and using the cooler-than-expected CPI print as a buy signal would have worked out relatively well.
Here’s how Charter Hall performed post-CPI:
It opened relatively flat on Monday but rallied intraday to a 4.8% gain.
- Friday, 12th July open – Up 3.3% to $11.94
- Friday, 12th July session high – Up 8.1% to $12.50
- Friday 12th, July close – Up 5.2% to $12.15
It’s pulled back over the course of the week but still 7.5% higher post-CPI.
So next time you see a big downward move in bond yields, remember Charter Hall
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