WRT - Westfield Retail Trust
- Thread starter System
- Start date
- Joined
- 12 November 2007
- Posts
- 2,944
- Reactions
- 4
tomorrow is the record date, I believe you will be alocated your WRT after the record date
I have read few reporting indicating growth for WRT in the upcoming year as it being at a discount.
I have not seen any real movement to indicated direction and I was initially invested in WDC for dividends with modest growth and was surprised at the dividend for WRT.
at .44cents per ordinary stapled unit this would indicate a .1% dividend surely there was no point paying a dividend at all.
I have not seen any real movement to indicated direction and I was initially invested in WDC for dividends with modest growth and was surprised at the dividend for WRT.
at .44cents per ordinary stapled unit this would indicate a .1% dividend surely there was no point paying a dividend at all.
- Joined
- 12 November 2007
- Posts
- 2,944
- Reactions
- 4
The dividend is in relation to the 2010 half year. Ask your self how many full months of rent WRT would have been able to collect before the end of the year. That is why the dividend is so low.
- Joined
- 1 October 2008
- Posts
- 3,733
- Reactions
- 391
Interesting that the lowys' are getting out whilst saying conditions are returning to normal.
4% down today.
4% down today.
- Joined
- 1 October 2008
- Posts
- 3,733
- Reactions
- 391
And they dropped it at $3.09 That's actually not too bad I reckon, well for them maybe.
I always suspected the split was to offer them a passage out of retail.
Jerry* over here:jump:
*(Jerry Harvey)
skc
Goldmember
- Joined
- 12 August 2008
- Posts
- 8,277
- Reactions
- 329
In much of 2012, all the retailers (except the main stables) were making new lows while the retail landlords were making new highs.
Now there seem to be signs of life in discretionary retail (certainly in the share price anyway), it would be funny to start seeing weaknesses in the landlords instead.
With WRT done 4% I am surprised that WDC isn't down more.
- Joined
- 1 October 2008
- Posts
- 3,733
- Reactions
- 391
I heard, I haven't seen anything to verify it, that the landlords were slashing rents around 15% in many places.?
Also when Jerry made that comment yesterday about the rent kicking butt over money in the bank, I felt, no wonder your poor Franchasies are doing it tuff. Your ripping them off! Like you used to do to your customers with no interest nothing to pay for an ugly couch that will cost you 3 times it's sale price over time!
Yeah but, retail does seem to be turning with these lower interest rates. I think Reject Shop is the best forward indicator as it has less competition with what it sells from online boom bust companies.
Also when Jerry made that comment yesterday about the rent kicking butt over money in the bank, I felt, no wonder your poor Franchasies are doing it tuff. Your ripping them off! Like you used to do to your customers with no interest nothing to pay for an ugly couch that will cost you 3 times it's sale price over time!
Yeah but, retail does seem to be turning with these lower interest rates. I think Reject Shop is the best forward indicator as it has less competition with what it sells from online boom bust companies.
- Joined
- 28 October 2008
- Posts
- 8,609
- Reactions
- 39
The Lowys typically back themselves for growth and prefer to hold the management and development part of the business (WDC).
WRT with its lower risk profile was principally floated off as a means of raising capital and reducing group debt.
- Joined
- 1 October 2008
- Posts
- 3,733
- Reactions
- 391
nulla nulla
Positive Expectancy
- Joined
- 24 September 2008
- Posts
- 3,588
- Reactions
- 133
You wonder how far ahead they saw/anticipated what was comming? The struggling economies, unemployment, reduced spending, the constriction of the retail sector, etc.
Recognising the impact this would have on the retail sector of A-REIT's did they then decided to hive off WRT, then sell their shares as soon as the WRT share price rallied getting out before the next fall? After all WDC did trade at $20.00 before the GFC and the forecast for WRT is extremely low growth. Better to pull their dosh out and put it where it will generqate better returns.
nulla nulla
Positive Expectancy
- Joined
- 24 September 2008
- Posts
- 3,588
- Reactions
- 133
After a brief burst into the sunshine with higher share prices fueled by investors seeking good yields where the returns are better than bank rates and bonds, WRT has dropped in the last couple of weeks along with the rest of the A-REIT's. The share price is now back to where the Lowy's bailed out. Can it bounce from here?
On the plus side the yield is good at these price levels and WRT will go ex-div this month paying in August. On the negative side, the Aud$ is under presure, off-shore investors are pulling out of Australia and Retail is still in the doldrums (just look at David Jones).
As always, do your own research and good luck.
On the plus side the yield is good at these price levels and WRT will go ex-div this month paying in August. On the negative side, the Aud$ is under presure, off-shore investors are pulling out of Australia and Retail is still in the doldrums (just look at David Jones).
As always, do your own research and good luck.
skc
Goldmember
- Joined
- 12 August 2008
- Posts
- 8,277
- Reactions
- 329
WRT ex-div is in August as well. They are off the usual REIT cycle but are in line with most other industrials.
nulla nulla
Positive Expectancy
- Joined
- 24 September 2008
- Posts
- 3,588
- Reactions
- 133
Thanks SKC. They must be following the same time lines as GPT which have also changed to two (2) divs per annum from their previous Four (4).
nulla nulla
Positive Expectancy
- Joined
- 24 September 2008
- Posts
- 3,588
- Reactions
- 133
This is getting really tempting. I just wish we had some idea as to where the Aud$ will find support and the exodus of foreign investment funds will stop and/or reverse (I don't ask for much do I).
As always, do your own research and good luck.
As always, do your own research and good luck
.- Joined
- 4 September 2013
- Posts
- 1
- Reactions
- 0
WRT - ASX
I am looking to invest my first $5,000 in a relatively high dividend yielding and stable stock. WRT looks alright - 6.8% dividend yield with a solid outlook and is currently trading at $2.93 (52 week low at 2.62 and high at 3.26).
I was thinking of buying when it fell below $2.90. Suggestions?
Thanks
I am looking to invest my first $5,000 in a relatively high dividend yielding and stable stock. WRT looks alright - 6.8% dividend yield with a solid outlook and is currently trading at $2.93 (52 week low at 2.62 and high at 3.26).
I was thinking of buying when it fell below $2.90. Suggestions?
Thanks
- Joined
- 13 August 2006
- Posts
- 876
- Reactions
- 1,080
Not investment advice, but one thing to be aware of is that WRT is a trust and pays distributions rather than dividends. This means no franking credits.
Also, I find trusts to be a bit of a headache when doing my taxes.
Also, I find trusts to be a bit of a headache when doing my taxes.
Re: WRT - ASX
If the stock is a buy at 2.93 it's a buy at 2.90 or 2.89. There is no huge difference between this except for 1 - 2 bucks a year in dividends (well distributions as someone pointed out). If it came down to a wire like this, it wouldn't be much of an investment.
Overall, I think WRT is worth considerably less than the current price. The price is likely to stay flat due to basically no opportunities for growth. It's whole business model is about not expanding overseas but rather sticking with its interests in Australia. There are limited amounts of shopping centres you can open per city before you become saturated, and the pressure to lease causes margins to be squeezed. Big anchor tenants like Woolworths or Coles can negotiate dirt cheap leases. Stores like The Reject Shop will actually close a profitable store if their demands are not met. They choose to send a strong message to lessors that this is the case rather than be flexible. Retailers can demand more and more. It is not just less rent they demand, but more rights ofer the premises, options, and terms of lease. A big anchor tenant can sign a flat rate 20 year lease as in their rent will not go up for 20 entire years. WRT is not going to grow any time soon so I can't achieve capital growth from it.
I am not looking for 5 - 7% returns. I want much larger returns on my money. I might as well stick my money in a term deposit and not take on the capital risk.
If the stock is a buy at 2.93 it's a buy at 2.90 or 2.89. There is no huge difference between this except for 1 - 2 bucks a year in dividends (well distributions as someone pointed out). If it came down to a wire like this, it wouldn't be much of an investment.
Overall, I think WRT is worth considerably less than the current price. The price is likely to stay flat due to basically no opportunities for growth. It's whole business model is about not expanding overseas but rather sticking with its interests in Australia. There are limited amounts of shopping centres you can open per city before you become saturated, and the pressure to lease causes margins to be squeezed. Big anchor tenants like Woolworths or Coles can negotiate dirt cheap leases. Stores like The Reject Shop will actually close a profitable store if their demands are not met. They choose to send a strong message to lessors that this is the case rather than be flexible. Retailers can demand more and more. It is not just less rent they demand, but more rights ofer the premises, options, and terms of lease. A big anchor tenant can sign a flat rate 20 year lease as in their rent will not go up for 20 entire years. WRT is not going to grow any time soon so I can't achieve capital growth from it.
I am not looking for 5 - 7% returns. I want much larger returns on my money. I might as well stick my money in a term deposit and not take on the capital risk.
