The JSE and finance forum for South Africa
General Category => Shares => Topic started by: macleanian on January 14, 2016, 08:04:52 am
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Have been looking to gain some exposure to offshore property, and have been considering New Europe, RockCastle and Fortress Income fund. I know that they've run hard, but based on fundamentals, does anyone have comments on the above or other suggestions I should be looking at? :)
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I put some money into Sirius Real Estate on the JSE about a year ago. Been solid so far with mainly commercial/industrial property in Germany.
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Sirius Property: Sirius leads the pack (http://www.financialmail.co.za/moneyinvesting/2015/12/10/property-sirius-leads-the-pack)
NEPI (Eastern Europe where mall 'culture' is only in the beginning stages)
Both can borrow at very low interest rates ±2% into properties yielding over 8%.
Prefer them to CCO or IAPF
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I like Rockcastle - done well for me so far.
Just something to consider is if the structure of the company is a REIT or not - If it's a REIT then the dividends they pay are treated as income (well local ones anyway - pretty sure international ones would be the same)
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I like Rockcastle - done well for me so far.
Just something to consider is if the structure of the company is a REIT or not - If it's a REIT then the dividends they pay are treated as income (well local ones anyway - pretty sure international ones would be the same)
No, all those mentioned here are treated by SARS as local dividends despite being foreign, because they have an inward (secondary) listing on the JSE.
So, you only pay the 15% dividends tax.
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No, all those mentioned here are treated by SARS as local dividends despite being foreign, because they have an inward (secondary) listing on the JSE.
So, you only pay the 15% dividends tax.
So only local REITs get taxed as income?
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So very broadly, If choosing between Sirius and NEPO, you'd be choosing between Germany and Eastern Europe? For the majority of your exposure?
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So very broadly, If choosing between Sirius and NEPO, you'd be choosing between Germany and Eastern Europe? For the majority of your exposure?
Yes, NEPI is currently focused on Romania, but also Slovakia and a little in Serbia.
Sirius is only Germany.
@Fawkes85 Yes, local Reits are taxed as income. (No withholding tax payable).
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I'm thinking of putting a few bucks in INTU properties. They are mainly commercial landlords in UK. Also JSE listed.
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I'm thinking of putting a few bucks in INTU properties. They are mainly commercial landlords in UK. Also JSE listed.
Watch out for Brexit jitters - may cause £ to drop.
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I'm thinking of putting a few bucks in INTU properties. They are mainly commercial landlords in UK. Also JSE listed.
Watch out for Brexit jitters - may cause £ to drop.
That's what I mean: Growing Minority Sees British Pound Heading to Level of Thatcher Era (http://www.bloomberg.com/news/articles/2016-01-14/pound-losing-the-love-has-growing-minority-seeing-1985-redux)
Rand hedge cred might not be as good as € or $...... on the other hand interest rates are said to stay lower for longer. Brexit is the big unknown.
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Sirius vs Nepi also add the first is light, short let commercial, the second is retail. Plus one is in a developed country the other is in developing countries. That said, if in doubt, buy both.
INTU is also spreading it's retail dominent foot print into Spain and owns a couple of huge one's there - might be a good recovery play.
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@Macleanian
This article might be of interest to you:
http://www.moneyweb.co.za/investing/property/listed-property-stocks-offshore-still-a-good-bet-for-2016/
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Thanks Fawkes, saw this article earlier, what are the chances? xD I was basically trying to decide between Nepi and Sirius, think I'm going to get into Nepi after reading a bit more today, I like the fact that they have gotten the jumpstart on the retail centres and can possibly repeat ths in neighbouring countries. Such a hard choice, almost just flipped a coin :))
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Buying FFB here.
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Good results as intimated by me previously. Only problem is the €, a structurally weak currency going forward.
Half Year Results for the six months ended 30 September 2016
Sirius Real Estate Limited - Half Year Results For The Six Months Ended 30 September 2016
Release Date: 28/11/2016 09:00:00 Code(s): SRE
Half Year Results For The Six Months Ended 30 September 2016
Sirius Real Estate Limited
(Incorporated in Guernsey)
Company number: 46442
Share code: SRE
ISIN: GG00B1W3VF54
("Sirius", "the Group" or "the Company")
Half Year Results for the six months ended 30 September 2016
Demand for flexible and conventional workspace drives earnings growth in H1 2016
Net Rental Income and Recurring Profits* up by 35.3 per cent and 87.2 per cent, Funds from Operations** by 72.7 per cent
- Total income increased by 25.9 per cent to EUR32.6 million (2015: EUR25.9 million)
- Like for like annualised rental income increased by 2.4 per cent to EUR64.5 million (31 March 2016 EUR63.0 million***)
- Current annualised rental income is EUR69.1 million****
- Recurring profit before tax increased by 87.2 per cent to EUR16.1 million (2015: EUR8.6 million)
- Funds from Operations ("FFO") increased by 72.7 per cent to EUR17.1 million (2015: EUR9.9 million)
- FFO was 2.13c per share and Adjusted earnings per share ("EPS") 2.01c per share (2015: 1.41c per share and 1.25c per
share respectively)
- Interim dividend declared of 1.39c per share, an increase of 51.1 per cent (2015: 0.92c)
*Reported profit before tax adjusted for property revaluation, change in fair value of derivative financial instruments and non-recurring
items including expenses relating to the Long Term Incentive Plan.
**Recurring profit before tax adjusted for depreciation, amortisation of financing fees and current tax receivable/incurred.
*** Including the initial annualised rental income of the Markgröningen and Krefeld acquisitions which both completed in May 2016.
**** Including the initial annualised rental income of the Wiesbaden acquisition which completed on 31 October 2016.
Dividend
The Company's dividend policy continues to pay shareholders 65 per cent of FFO, with the dividend paid semi-annually. As in previous
periods, the Company is offering shareholders the ability to receive dividends in scrip rather than cash.
In accordance with this policy, the Board has declared an interim dividend of 1.39c per share for the six month period ended 30
September 2016. The ex-dividend date will be 13 December 2016 for shareholders on the South African register and 15 December
2016 for shareholders on the UK register. The record date will be 15 December 2016 for shareholders on the South African register
and 16 December for shareholders on the UK register and the dividend will be paid on 20 January 2017 for shareholders on both
registers. A detailed dividend announcement will be made in due course.