richfool wrote:SKYSHIP wrote:Since my original post 7 weeks ago (18th August) API has been fairly steady in an overall weak sector. They have risen c7% to 49p, at which level the discount is still high at 41.5% and the yield likewise at 8.16%.
With interest rates now looking to have peaked, though predicted to stay high until Summer'24, this generalist fund should make further progress as the Market tends to look ahead; and in this case that should mean looking ahead to more "normal" valuations.
So I see API as a strong hold; and still a BUY for those coming new to the sector.
Currently the BEST BUY in the sector is EBOX. At 48.75p the discount to their Mar'23 NAV is 45.9%; but more importantly their yield is a massive 8.90%.
Their Interims back in May just reinforced everything the bulls say about EBOX. Quality, assets; quality tenants, rising income, secure dividend. LTV modestly too high, but a reduction through minor sales projected. Debt costs low, RCF only half drawn, medium term maturities.
Well worth spending a fruitful 50mins viewing this Presentation:
hxxps://stream.brrmedia.co.uk/broadcast ... 24552e4f2b
I continue to hold API, which I topped up a couple of months ago, with some of the proceeds from my sale of EPIC.
Looking at the breakdown of API's holdings, I would rather it held less offices and perhaps more warehouses and industrial.
My other REIT/Property company holdings are: WHR (warehouses) and PHP, both of which I have topped up earlier this year, but as we know are all down currently, primarily due to higher interest rates (which don't look like going away for some time to come).
Well API continues to offer an ever increasing dividend yield, 8.55% currently at 47p, (if not increasing value!? ... hmm).
My combined holding of API is currently down -28% in capital performance terms.... which compares with my holdings of:
PHP: -27%
though WHR has the edge at -31%
Obviously all 3 currently offer very significant dividend yields, .... greater than the dividend yields on offer when I originally purchased them! So I deduce I should console myself with the large dividend yield that each currently offers (even though I didn't buy at the current share price!)
All of which brings a wry smile to my face, when I think back to how on the odd occasion in the past, certain HYP'ers used to insist that I shouldn't take any notice of "yield on cost", but should instead only focus on "yield on (current) value", and that to focus on "yield on cost" was to simply flatter oneself. In the current situation, I can't help thinking that I am flattering myself if I focus on "yield on current value"!!
I conclude that these things are all measurements to be borne in mind, but not to focus solely one, to the exclusion of all others.