Notice most of the good Trusts have been showing some upward movement over the last few days .

Could Interest rate increases be dead in their tracks ....I say YES

We are also starting to get into the dividend season for most LPT's. This is particularly important for half yearly payers, such as GAN and CPA.



Cheers

LJ

Thanks LJ ...I realised that ...but it appears a lttle stronger than usual ??

Yes, I do agree with you. My LPT / LIC portfolio has gone up by about 3% in last three days. I hope this is the begining of a sustained recovery.

CPA, GAN, MCW, MOF, VPG, BWP, MGQ are all looking good. Also WDC is higher than it has been for a while.

My all time portfolio high was in Jan of this year. It would be really nice to end the financial year ahead of that.

I am looking for a recovery in RRT at the moment, I still have a lot of options which expire 25 June. They are currently only very slightly in the money.


Cheers

LJ

LJ ...sector still warm GPT strong ...Stockland firm ..office trusts strong

I have ben buying Carrindale ..for some months now ..check the chart

cheers

Nice start to a recovery for Mirvac today, it pulled Australand up with it.

I have never owned Carrindale, but I will have a look at it.

Another developer I like is Finbar, a WA based company. Very small but the financials look good and they have some very nice parcels of land around the place.

I also bought some shares in Cromwell about a year ago, when they were about 13c, now about 25c. They are a property and fund manager.

These are the two "specs" in my property portfolio, but both are making profits.

After some of my mining and biotec specs were wiped out in the recent correction, and some of my options (RRTO and MFSOA) look like expiring worthless, I have decided I will never buy anything ever again that is not making a profit.


Cheers

LJ

robert

Do you know of any reason why Westfield have not taken over Carindale?


Cheers

LJ

L J .....The same thought encouraged me to buy in below $3....they are only a one property trust ...but a very good property.
I like the fact that WDC is close at hand .

Carindale still moving north ...check its chart !!

Property trusts pay out their distributions in full; they are known as yield plays for that reason.

If the share price is rising, this could be bought on by revaluations of underlying property (a lumpy and inexact science) or perhaps by increasing leverage, or borrowings, thus boosting the equity component. Nice in a stable interest rate environment but the reward is coming from increased risk, yes/no?

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And a semantic quibble: if its "moving North" shouldn't we check the map? That is unless it is an offshore trust, whence I suppose a chart would be correct.

B.

A lot of them are not just property trusts, they are developers and managers as well (stapled securities, eg CNP, WDC, VPG, ALZ). A lot of companies that were once pure property trusts have gone this path, but some stapled ones are spinning off the property again, (eg CNP spinning off CER)

Some property trusts are buying offshore property as quality assets in Australia are geting more difficult to buy. Too many property trusts and property syndicates chasing them. The US component makes for higher risk, not only becasue they are relying on offshore expertise, but also because of currency differences. You can hedge a few years ahead, but after that you have to take the consequences of any major shifts.

For pure property trusts, the rents should go up with inflation and the value of the properties should go up to correspond so they give the same percentage return. This should give inflation protection for your capital plus a yield above the bond rate. This yield can be increased above the rental return if the property trust is leveraged.

Property developers are higher risk due to earnings being more dependent on higher risk ventures. TGP recently gave a profit warning and the share price plummeted in a spectacular way.

Property managers are generally quite stable and can increase in share price much more quickly than property trusts. eg CMW. Most of these are now part of stapled groups, however.



Cheers

LJ

L J.......do u have your knowing eyes on any PT at the moment ?