What stocks for property exposure?

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Question asked 30/10/2021

What stocks for property exposure?

Just a question for your Saturday note: I am in the process of selling a residential rental property as the new Vic Residential Tenancy Laws place unrealistic obligations on landlords. As I wish to retain exposure to property with the funds, can you suggest 4 or 5 REITs, ETFs or LICs that potentially or will provide growth in both income and capital over the coming years? - Thanks Chris

Answer

Hi Chris,

In the property space we currently own:

Dexus (DXS) which is the largest office landlord in the country – while this is still trading at a discount to it’s asset base, it has rallied since we purchased and we are now more neutral DXS
National Storage REIT (NSR) is as the name suggests, a self-storage business we like and continue to hold – it has done well for us however self-storage has strong tailwinds, more so than office

Stocks we don’t own that we like:

Stockland (SGP) which has fingers right across the property landscape & do a good job. We like SGP ~$4.50 even though we don’t own it
Goodman Group (GMG) is not an income stock, however it provides exposure to the growing dynamics of e-commerce, and we will be tempted to buy this ~$20.

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Dexus (DXS)

LAST UPDATED 30/10/2021 08:31

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