Thanks a lot for the explanation.MDW1954 wrote:Tritax EuroBox has two listings: EBOX, quoted in pounds, and BOXE, quoted in euros.stevensfo wrote:
Do you mean Tritax EuroBox (BOXE.L) ?
Steve
Some brokers deal in one, some in the other, and some deal in both.
MDW1954
Indeed. I have no idea why II is like that. I was going to message them and ask to have it added to their trading system. Just haven't got around to it. I really do not want to have foreign currency holdings or dividends in my II account. But I would be interested in EBOX were it available at II. They have been very helpful in the past when I've asked similar things.stevensfo wrote:Thanks a lot for the explanation.MDW1954 wrote:
Tritax EuroBox has two listings: EBOX, quoted in pounds, and BOXE, quoted in euros.
Some brokers deal in one, some in the other, and some deal in both.
MDW1954
I could not find EBOX in Interactive Investor and assumed the EPIC was a mistake. Then I found BOXE.
So ii offers the euro version, but not the sterling. Strange.
Steve
If you specialise in the REIT sector, I defer to your presumably better knowledge than I have but are surveyors not valuing most REITs on DCF?SKYSHIP wrote:I have always specialised in the REIT sector. As I state in the Header to the CP+ thread, the commercial property thread over at ADVFN:
“The commercial property sector can provide rich pickings for VALUE investors prepared to spend a little time analysing the principal metrics of Yield, NAV discount and LTV; then delving into the detail of financing, tenant mix, lease lengths, sector spread, geographical spread.
The sector can be a profitable and to a degree a predictable sector to trawl – provided you can call the savage bear markets that can and do overtake the sector from time to time!
It is a sector relatively immune to the conventional trading company risks of competitor action, margin erosion, contract losses and all the other routine and unpredictable problems that so beset industrial companies.”
Well, since Q3’22 the sector has endured one of those savage bear markets, though on this occasion steep but mercifully short. The sharp increase in interest rates rapidly undermined valuations as surveyors found a sudden lack of transactional activity upon which to base their estimates. Due to the political and economic upheavals in H2’22, they valued in seemingly over-cautious mode.
The CPRE monthly stats and the Q1’23 NAV valuations so far revealed, suggest we have turned the corner and NAVs are improving, with sentiment suggesting more to come throughout ’23.
Personally I won’t touch the quasi residential sector suggested above; but I find plenty of value elsewhere:
# API – 55.5p – Discount 34.6% - Yield 7.21%
# EBOX – 64.9p – Discount 46.8% - Yield 6.81%
# SERE – 83.4p – Discount 29.3% - Yield 7.85%
# SREI – 46.65p – Discount 24.8% - Yield 7.02%
The two middle ones both have their portfolios in continental Europe. One has almost the highest discount in the sector; one almost the highest yield.
Mark88man - might I suggest you start your research with those two. There are excellent Presentations available on both - see the relevant ADVFN threads.
Thanks. At least DCF produces a sort of consistency. Basing valuations on transactional activity can simply produce a spiral in either direction. These days what bothers me slightly is the cost of debt for some REITs and of course with much of it at a fixed cost for a term, we need to take a view on the cost when the REIT comes to renew it (because unless selling something many do not have the opportunity to accumulate much capital to pay it off)SKYSHIP wrote:Dod - they use both; but transactional activity to confirm valuations based upon DCF. Hence the problem in Q4'22 with over-low valuations derived in the main from DCF during an interest rate spike.
Positive update from Target todaybrightncheerful wrote:If it's high yielding ( a consequence of sp) you're looking for, then the following might be of interest:
Target Healthcare REIT
Civitas Social Housing REIT
Triple Point Social Housing REIT
Each specialises in asset categories such as care homes, social housing and such like.
Because the roroperties are out of the ordinary they tend to be ignored by most buyrers but actually they have a lot more going for them, For example, long leases which compares very favourably with standard commercial property leases which nowadays is on short / shorter leases. Mostly if not all the rents are index-linked (some with cap and collar) or fixed uplifts.
Currently, the three I've mentioned sps are at 40-50% of the NAV.
DYOR