Skamvougeras: Property trusts at "extreme valuations"

Livewire Equities


Perpetual’s Head of Equities Paul Skamvougeras thinks bond-proxies, including REITs and infrastructure stocks, are looking overpriced. "People are looking at the spot interest rates and valuing some of these companies. We think you need to take a through-the-cycle approach - that yields a different result when you look at the valuations. If you look at property trusts in particular, they're all trading 30-50% above their NTAs. They're extreme valuations. If you look at something like Transurban; highly-geared vehicles, had all the tailwinds of low interest rates, but not pricing in any prospect of interest rates ever being any higher. Transurban is geared at 8x debt to EBITDA and delivers roughly a 4% distribution. Is that enough for the financial leverage within that vehicle? We don't think that's enough." In the video below, he looks at one stock that he likes following reporting season, and shares his views on the banks. (Discussion of bond-proxies starts at 6:32)

2 topics

3 stocks mentioned

Livewire Equities
Livewire Equities

The Livewire Equities feed brings you a range of insights that relate to Australian equities


No areas of expertise

I would like to

Only to be used for sending genuine email enquiries to the Contributor. Livewire Markets Pty Ltd reserves its right to take any legal or other appropriate action in relation to misuse of this service.

Personal Information Collection Statement
Your personal information will be passed to the Contributor and/or its authorised service provider to assist the Contributor to contact you about your investment enquiry. They are required not to use your information for any other purpose. Our privacy policy explains how we store personal information and how you may access, correct or complain about the handling of personal information.


Sign In or Join Free to comment