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Does MM have any interest in HPI?

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Does MM have any interest in HPI?

Hi James and team, Thanks for continued informative reports. Do you have any interest in HPI and would it be a stock that could have a place in a balanced/dividend portfolio? cheers Alain


Hi Alain,

This is actually a new one for MM as it does not meet liquidity filters i.e. not enough daily volume for us, however in saying that, it looks interesting. They hold a portfolio of pubs and associated venues like bottle shops, mostly in QLD and lease them to experienced operators and collect the rent. 5.4% (unfranked) yield is attractive, our only query would be around the level of growth (low single digits) versus current valuation (~18x). JP Morgan have a hold at $3.70 PT, Evans have a buy equivalent and $4 PT.

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Hotel Property Investments (HPI)
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