more on property

[partridge]

Was listening to some fund managers on the subject of property the other day and concluded that RSA property is unquestionably fully priced - but EUROPEAN and US look to offer value. Especially the former - given QE and sustaining low interest rates - and inflation in the Eurozone - what's that? So RPL still looks a good choice - especially now the portfolio is so much more clearly defined ito its focus.

[geordie1]

thanks don't disagree.i am so glad I have been in property shares for the last 16 years.they have never let me down.with rand weakness as well it makes logical sense to have something overseas.redefine also has I think 30% so it has some skin in the game.I have had overseas property for the last 18 years.Fit then Liberty international now split in two.I have been reasonably happy with capital growth largely because rand devalued but their distributions have not been as impressive as the property funds in SA

[#3]

My take on these guys is that they are minnows in a big pool, taking the big boys on in a game that requires big deal making capability. And RPL has uncomfortably high debt, and a balance sheet that doesn't offer a lot of confidence in their ability to pull off more deals. But international property, as a sector, is fantastic. NEPI has been a great performer. But it might be a bit late to get in, I think. Main reason is the exchange rate. If you are bullish on the Rand, (like me) then you will probably not see much performance out of the offshore boys. Can't say I agree on the rationale that SA property is expensive - it kicks yield butt still. My pointers in this sector - is look towards the guys investing in Africa. ATT, HYP being my picks.

[partridge]

One doesn't want to rain on anyone's parade - but property has historically had a very low long term return and the last ( good ) few years 's high returns have been exceptional. Best to accept that - its a fact. An asset is either cheap or its expensive its not intrinsically good or bad ( as in property is a "good investment" - it has been, no doubt of that)and with the market discounting future growth its no wonder property share prices are pretty pedestrian in fact I have seen stunned slugs move with more alacrity. That said I agree - I like the Africa and European play and of course the US OF A that has to be good value even in the upswing - I know something about German property and its ridiculously cheap. So even Billy no funds should do quite well there but just hope your next door neighbor isn't Blackrock...

[#5]

just remember that there is a difference between the property you can buy and listed property. These guys skim a percentage of topline of everything sold in their malls - as well as rent. So while technically their asset is a piece of land with a building on it, that asset has tremendous ROA - and is not just waiting for ma and pa to pay the lease. As long as the general economy grows, they will grow exponentially.

[partridge]

Firstly not everyone pays a turnover clause payment -generally it kicks in at a certain level - and the way things are looking its not going up.... apropos of which the second point: the big thing is "economic growth" - now there is the rub. But German property yessir and of course those idiots with the nuclear capability - the US