A great interview perfectly explains why Regional-centric propcos are VALUE
Posted: January 1st, 2018, 2:20 pm
I post below a link to a Citywire interview with the CREI CEO – they trade at a NAV premium, so not my favourite. But the interview expresses admirably just why many of those regional-centric propcos should be represented in any portfolio – the main reason being the widest ever spreads between the average 3.5% cost of debt and the 8%+ income yield from good tenancies. Also perhaps explains just why CREI are able to continually place new shares to institutions at an NAV premium.
Bear in mind that this great yield gap delivers:
# EPIC on a yield of 5.2% - NAV discount of 1.5%
# RGL on a yield of 7.7% - NAV discount of 3.0%
# RLE on a yield of 5.1% - NAV discount of c15%
# HCFT on a yield of 5.0% - NAV discount of c19%
Well worth a 10minute listen:
https://tinyurl.com/ycyn8o3x
Bear in mind that this great yield gap delivers:
# EPIC on a yield of 5.2% - NAV discount of 1.5%
# RGL on a yield of 7.7% - NAV discount of 3.0%
# RLE on a yield of 5.1% - NAV discount of c15%
# HCFT on a yield of 5.0% - NAV discount of c19%
Well worth a 10minute listen:
https://tinyurl.com/ycyn8o3x