Thoughts on Myer and the wider market

Pat Barrett

At the Bank of America Merrill Lynch AREIT conference in Sydney, panels discussed how to keep the mall relevant, the strength of the Sydney commercial market, policy impacts upon the residential sector and capital flows. Meanwhile, Myer released their revised strategy, offering insights into the department store sector. The key... Show More

Killing me softly with retail

Pat Barrett

The retail sector has been impacted by a combination of cyclical and anticipated structural issues. Cyclically, retail sales have been under pressure due to higher living expenses (higher debt costs and utilities) which have grown faster than wages. Structurally the market is anticipating much weaker conditions given the arrival of... Show More

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Retail on the nose?

Pat Barrett

This thematic of retail being on the nose is picking up momentum with another three reports in the past week documenting the headwinds for retail tenants and in turn landlords. We do agree with the general thesis and that's why we went underweight the retail sector last year but where... Show More

If you're tired of volatility buy REITs!

Pat Barrett

...sure, there's no +13% returns on results day like NIB Holdings, but there's also none of the wild swings we've seen with Worley Parsons, or the -36% MTD falls for software group CSG. The REIT results display reliable income growth due to the contractual nature of the rental income. REITs... Show More

It's no surprise there's no surprise

Pat Barrett

With REITs earnings largely derived from contractual rental income, it's no surprise that the sector has delivered solid earnings growth and that there's been no earnings surprises. The general trends thus far have been further cap rate compression (massive demand for real estate), debt cost savings, further corporate efficiencies and... Show More

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