Saturday, 21 January 2017

Which REIT managers are creating the most value for investors?

 The external manager model adopted by most locally listed trusts is not common in more developed markets such as the US and Australia, and the managers of some successful REITs here have been able to make fortunes for themselves.

However, valuations that managers garner in a transaction, to the extent that they are known, vary widely.

Saizen REIT’s manager, for example, is being sold at a seemingly low price because it is not actually managing any assets.

On the other hand, while Croesus Retail Trust (CRT) has been reporting stable distributions per unit since its listing in 2013, its units traded at relatively high yields because local investors were not familiar with its retail malls in Japan.

The managers that never get transacted are those that run the biggest and most successful REITs in the market, such as CapitaLand Mall Trust (CMT) and CapitaLand Commercial Trust (CCT).

These managers also seem to charge relatively low fees.

For instance, CCT paid asset and property management fees totalling only $21.7 million last year, equivalent to just 0.25% of its assets under management of $8.5 billion.

By comparison, Cambridge Industrial Trust — with an asset size of $1.4 billion — paid asset and property management fees of $9.17 million for the July-to-September quarter alone.
REIT investors should perhaps ask themselves which managers are creating value for them, and which are not. 

5 comments:

  1. You have a great blog. With the BloggerContest.com you are a candidate to win with your website or blog, promote your web page, win prizes and promotions. With the support of our sponsors via we organize our blog competition for the first time in 2017. You can learn more about participation from our website.
    You can join, the applications are ongoing.


    Web : http://www.bloggercontest.com
    Mail : contact@bloggercontest.com
    Pbx : +650694802050

    ReplyDelete
  2. If you need your ex-girlfriend or ex-boyfriend to come crawling back to you on their knees (no matter why you broke up) you got to watch this video
    right away...

    (VIDEO) Text Your Ex Back?

    ReplyDelete
  3. eToro is the #1 forex trading platform for beginning and pro traders.

    ReplyDelete
  4. My name is Leah Brown, I'm a happy woman today? I told myself that any loan lender that could change my life and that of my family after having been scammed separately by these online loan lenders, I will refer to anyone who is looking for loan for them. It gave me and my family happiness, although at first I had a hard time trusting him because of my experiences with past loan lenders, I needed a loan of $300,000.00 to start my life everywhere as single mother with 2 children, I met this honest and God fearing online loan lender Gain Credit Loan who helped me with a $300,000.00 loan, working with a loan company Good reputation. If you are in need of a loan and you are 100% sure of paying the loan please contact (gaincreditloan1@gmail.com) You can also whatsApp them at: at +44-75967-81743 (WhatsApp Only) .. and inform them Leah Brown addressed to you ..

    ReplyDelete