Originally Posted by
Baa_Baa
@SailorRob I wonder if you're over thinking this, as most 'investors' imo wouldn't be too bothered with the long term underlying maths of their investment, or have the skills to calculate it as precisely as you do, and they can sell anytime they want to if they're uncomfortable.
Fact is, however these property companies make their money, they've always paid out a relatively decent return, which can be reinvested or elsewhere, not taking into account the share market valuation which is imo irrelevant except for some who have the ability to buy low to get the best ROI or sell high to avoid a capital rout and forgo the ongoing ROI.
The current situation is a market sentiment that hates property, but the result is an opportunity to acquire a relatively low risk income at ridiculously low multiples to net tangible assets. Like, if you own the company and it sold everything, you'd get paid out more than the price you paid to acquire it.
Anyway, I'm not sure about the point you're trying to make with listed property companies, as imo it's irrelevant how they reward their shareholders through whatever cycles they are going though, and whatever giggery pokery they use to exploit cash, debt or valuations, as long as they reward their shareholders and don't go bust in the process.
Imo most investors are not so deeply concerned with the maths, when every quarter or half-year they get a slab of money or shares paid back and might only wonder if they might have got more from some other company. Most, imo again, aren't too concerned with the market price except whether it's a good time to buy, buy more, or sell above valuation.
My thesis is that property, all types, is a long term investment opportunity worthy of a position in ones portfolio, especially in NZ which loves property. All of them are super cheap to buy right now. Most pay a decent return frequently. They will all soon be challenged by the returns on other assets and be looking to increase returns to shareholder who may be wondering if their investment is better placed elsewhere.