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Author Topic: Property stocks trading at a discount?  (Read 8957 times)

Samurai

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Property stocks trading at a discount?
« on: February 15, 2016, 11:17:05 am »
Attacq is down 27% in the last 12 months currenly trading at R16.92.
What would be the reason for this and can one view the current price as a value share?
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JohnnyH

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Re: Property stocks trading at a discount?
« Reply #1 on: August 18, 2016, 07:38:03 am »
Hope you don't mind that I use your thread Samurai.

I am currently looking at Texton. Trading at ~R6.90 with a NAV of just under R10 I think.

Current dividend yield is 14.96% at this price. Now I know there is a risk of the div coming down, but I do wonder, wouldn't this make a lekker cash cow? Not expecting much growth in value over time, BUT, I do like the idea of having a stock that gives me money to reinvest over time. Also, it feels like a good time to buy something that has UK & pound exposure.

Mr_D, I would like your view on this as well if you read this by chance. :)
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Mr_Dividend

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Re: Property stocks trading at a discount?
« Reply #2 on: August 18, 2016, 08:27:15 am »
Johnny, I think it a great deal. Has been punished a lot for it's UK holdings. last year it increase it's dividend by around 15% - I guess that is unlikely this year - but even if dividend remained the same, it's a great deal. I had the div as 101.61 so @ 700 it's 14.5%. I think a lot of their recent purchases had not run the full year ether - but could be wrong.

Sanlam says TEX results out on 29 August - might be worth seeing what the dividend is then. Last year, 50.09 - that or above buy, below wait?

Overall, I am down quite a bit on TEX - bought quite a bit at 780. Head says I have enough - heart says buy a few more. Will be buying a lot more overseas REITs in the near future - but locally will probably pick up Resiliant and add to Tower. But by far my best local REIT for growth has been Hyprop - also my biggest holding, luckily enough. If you buy Resiliant you get a fair chunk of Nepi, Roc, Greenbay and a few others - has been growing it's divi at a good rate.
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JohnnyH

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Re: Property stocks trading at a discount?
« Reply #3 on: August 18, 2016, 09:07:53 am »
Thanks for the detailed reply Mr_D.

I have most of our money in growth type stocks & ETFs, so I just want to add something that generates cash that can go back into more growth stocks or ETFs. That near 15% div yield is hard to ignore haha!

I like Resilient also, but it looks much more expensive than TEX, same with Hyprop.
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dividendtycoon

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Re: Property stocks trading at a discount?
« Reply #4 on: August 18, 2016, 10:31:02 am »
This sector is tempting, but you need to do your homework on them. I like Tower which has done ok since I bought, is under cautionary. I also bought Delta but recently sold and broke even. Sold for a better (risk adjusted) return elsewhere, but still think yield attractive, but not sure of quality so may leave it for now.

Texton yield also very tempting, but there are risks. Edcon leases a 27000sqm building which is at risk of edcon going under, the renewals of SA leases going backwards in rentals, and it difficult to know quality of UK props. However, think the yield prices the risks in and at current prices might be a good buy.
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czc

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Re: Property stocks trading at a discount?
« Reply #5 on: August 18, 2016, 11:07:20 am »
I saw yesterday that TEX bought 2 properties in Bedfordview, my hood. I might just buy some for those reasons.
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Mr_Dividend

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Re: Property stocks trading at a discount?
« Reply #6 on: August 29, 2016, 01:59:42 pm »
Texton:

Quote
Cash dividend

Notice is hereby given of the declaration of the final dividend

number 11 of 52,16 cents per share for the final six-month period to

30 June 2016, bringing the total dividend for the year ended 30 June

2016 to 103,68 cents per share (2015: 94,77). The dividend has been

declared from income reserves.

Happy with that
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JohnnyH

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Re: Property stocks trading at a discount?
« Reply #7 on: August 30, 2016, 01:37:25 pm »
Quote from: Mr_Dividend on August 29, 2016, 01:59:42 pm
Texton:

Quote
Cash dividend

Notice is hereby given of the declaration of the final dividend

number 11 of 52,16 cents per share for the final six-month period to

30 June 2016, bringing the total dividend for the year ended 30 June

2016 to 103,68 cents per share (2015: 94,77). The dividend has been

declared from income reserves.

Happy with that

I am happy with this also, luckily bought my stocks @698c, so currently up ~12% with the div coming...very nice!

Hopefully they can continue with dividend growth close to 10% pa, that at least beats inflation quite nicely.
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