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
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
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.