accumulate

[partridge]

I think this is taking on more and more of the appearance of a stock one should be accumulating for the long term.

[barry_1]

I agree. It took some time to get underway, as I have held since first listed, but you pointing this out has led me to add more today!

[geordie1]

had a quick look.like property.like rand hedge.not great capital growth so far.not great distribution at moment.read a bit and got a bit of confusion re its business model?property or hotel management or a mix.I will do a bit more investigation .I do currently hold overseas property and my experience so far is that they do not do great from an international prospective but because rand has depreciated so much the returns are reasonable ie ahead of inflation but nothing spectacular

[#4]

have to say I don't like this one. Market cap of R11bn - but they are sitting with something like GBP500m in interest bearing debt - that is huge. Their current portfolio is not really covering the debt payments - and they still have 7 years worth of repayments to make. So loss making (although their recent announcement is doubled EPS - be interesting to see what accounting tricks have made that happen). Investing in these guys works because they can continue to invest in the kinds of properties you never will be able to. But RPL doesn't have the balance sheet to go after anything significant, IMO. Compare this to my current international favourite - NEPI. R28bn market cap, cash positive, around R4bn in debt, and a decent balance sheet. I guess the share price graph tells the story. Even ITU has a better track record - R80bn market cap, high debt still, but less than RPL, and revenue generating assets.

[partridge]

Points to ponder for sure. They buy stuff you cannot accumulate. Time horizon is all important here. Bottom drawer. I like where they are buying e.g. Germany - where property is generally undervalued - combination of things gives rise to this - unlike the UK SE. The ( or at least a ) key is to ensure that you always can outperform the inflation rate in the country where you invest - and this sort of investment in EU properties ( inflation 2% ?)has a low hurdle rate. So, it like other property counters can justify a place in your overall asset allocation.

[geordie1]

nepi looks like a good find.solid capital growth.progressive record of increasing distribution in a rand hedge.only downside i could see was fairly significant selling by associates of share.currently overpriced maybe?magic if u got in early.thanks for this