Duet (DUE) owns regulated gas and electricity utilities . The company has recently undertaken a major capital raising of $1.7 billion (DUE market capitalisation $2.9 billion) to purchase Energy Developments (ENE). ENE is involved in remote energy, waste coal mine gas and landfill gas. Whilst there is natural scepticism around... Show More
Sydney Airport (SYD) is the owner and operator of the sole international airport in New South Wales, Kingsford Smith Airport. We have reviewed two of the chief value drivers for the company over the medium to long term: 1) The ability for SYD’s Kingsford Smith Airport to absorb the growth... Show More
The Freehold Absolute Return Fund delivered a -1.77% return over May, taking the 12 month return to 14.4% net of fees, and 36.1% since inception (June 2013). Show More
APN Property Group (APD) is a real estate focused fund manager with a twenty year trading history. Like many real estate companies, APD experienced a tumultuous time during the 2007/08 global financial crisis. Now in 2015 the company is very well capitalised and has four business units that have developed... Show More
The Freehold Absolute Return Fund generated a positive 1.5% return over the month of April, lifting the past 12 month’s performance to +18.4% and the since inception number from July 1st 2013 to +38.6%. Show More
Aurizon is Australia’s largest rail freight company, transporting general freight, iron ore and coal. The Company has been an excellent performer since listing, with the management team delivering successfully on a productivity improvement program that has seen major margin improvement. AZJ remains a moderate consensus buy call, with the market... Show More
The Freehold Absolute Return Fund generated a mild +0.23% return over the month of March 2015, amid generally weaker real estate and infrastructure markets. Show More
The Freehold Absolute Return Fund delivered a +1.1% return over February, driving 12 month returns to +22.5%. The Fund continues to generate very solid returns with low levels of volatility. In this month's newsletter: - We discuss the potential risks of unanticipated rises in US interest rates, which would likely see... Show More
Please find attached a link to the newsletter for the Freehold Absolute Return Fund for the month of January 2015. The Freehold Absolute Fund delivered a +1.49% return over the month and is now up 22.1% over the past 12 months. Since inception from July 1 2013, the Fund has... Show More
The merger between retail shopping centre landlords Novion (NVN) and Federation Centres (FDC) creates material economic value. Approximately 60% of the ~ 12%earnings upgrade delivered is very high quality, stemming from economies of scale, specifically reducing overhead costs and enhancing development capabilities. The balance of the earnings upgrade comes... Show More
We thought you might be interested in the December newsletter for the Freehold Absolute Return Fund. The month of December saw a positive 3.2% return. The Fund has now delivered an absolute return over the past 12 months of +18.5%, and a since inception return from June 2013 of +32.7%.... Show More
Folkestone Education Trust (FET) is a REIT that owns a portfolio of over 350 childcare centres around Australia. We like the stock given its low risk earnings stream, long lease expiry profile, ability to develop assets on balance sheet and the opportunity for value creating acquisitions. The recent proposed... Show More
High growth National Storage REIT (NSR) has just raised $45.9 million in an institutional placement to continue to consolidate the highly fragmented Australian self storage market. NSR should be able to generate strong earnings growth from acquisitions - we are expecting the combination of organic growth and acquisitions should see... Show More
The broader REIT sector appears overbought; it is time to start rotating from large cap REITs into select small/mid cap REITs that have lagged the rally. The REIT sector is up a staggering 21.5% since the beginning of the year, while some small mid cap REITs have not moved. Case... Show More
It is rare to see a large cap REIT trading at a large discount to valuation, but when we do our numbers on newly formed Scentre Group (SCG) that is exactly what we see. SCG is the combination of the portfolio of Westfield Retail Trust and the portfolio and Australian... Show More
The Freehold Absolute Return Fund generated a +1.75% return for the month of May, seeing the since inception number move to +19% (11 months to May 31st). Key contributor for the month was our long position in Envestra (ENV) which saw an all cash bid from Cheung Kong Infrastructure... Show More
Federation Centres (FDC) is a REIT that owns a portfolio of regional and sub-regional shopping centres. We are attracted to FDC for their ability to lift the operating performance of their centres by undertaking value creating development and taking costs out at the centre level. The REIT yields 6.4% for... Show More
Australian Education Trust (AEU) is a REIT that owns a portfolio of over 350 childcare centres across Australia. AEU yields a forecast ~ 8.3% for 2015 and should grow earnings at least at inflation over the medium to long term. We believe the underlying risk of the portfolio is... Show More
The Freehold Absolute Return fund generated a +1.69% return over April, bringing the since inception number (10 months) to +17%. Best performer for the month was National Storage (NSR) which rose materially after announcing the first major acquisition since listing. For our monthly newsletter please visit: www.freeholdim.com.au/downloadables/Freehold%20Absolute%20Return%20Fund%20-%20April%202014.pdf Show More
Australian Industrial REIT (ANI) has been a relative laggard in the recent real estate securities rally and may play catch up. ANI is a small cap AREIT that holds a portfolio of 14 industrial assets, spread across NSW, Victoria and Western Australia. Income risk is relatively low with a quality... Show More
Thanks James. The two chief reasons for the higher yield is that REITs generally do not have franking, and they are generally lower growth than the broader equities market, so investors are compensated for that via a higher yield. That said, the yield from a REIT is generally much safer than an equity given it is backed by in place leases.
James, from our perch the self storage sector does lend itself towards consolidation - there are scale benefits from amortising advertising, technology and quality management across a large portfolio of self storage centres.
On National Storage (NSR) is a high yielding, high growth real estate investment trust -