Morning Report Monday 9 February 2015
Do the REIT’s (Real Estate Investment Trusts) continue to be great Investments?
Over the last 12 months the banks have regularly been heralded in the press, gaining 9.6%, whereas the REIT’s have quietly rallied 12%. Two points I have been discussing at length over recent weeks are very much “in play” when we look at the REIT’s from here:
1. Australian 3 year bonds are now yielding sub 2% significantly aiding the REIT’s.2. The trend remains your friend and the REIT’s have been performing extremely strongly.
The REIT’s do not compete with the banks on a yield basis. Generally paying around 1% lower yield and importantly it’s unfranked, so we are looking at this sector more for capital gain. Four leading stocks in the REIT’s sector that I like are:
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