dividend yield Reits


was just wondering why so little stock is traded ?

perhaps a silly question but volume seems remarkably low for the residential one in particular ?
 
Maybe most of the investors are "Buy & Hold"?

After all, if you buy a house you don't generally sell it the next year to buy another
 
jpd said:
Maybe most of the investors are "Buy & Hold"?

After all, if you buy a house you don't generally sell it the next year to buy another
Click to expand...

Yes but REITs are still publicly traded securities, buy and hold as a key philosophy can still apply while wondering why volume is so incredibly thin ?

I've a good bit in both the main residential and commercial REITs and the dividend yields are terrific but it is sort of weighing on my mind a little

Always heard it said that very low volume traded stocks can fall in value an awful lot
 
What stock are you talking about?

As an example -Microsoft stock trades less than 1% on average every day on the Nasdaq, Total the same in Paris, Llyods Bank UK ave t/o 237M out of a float of 67B shares
 
galway_blow_in said:
Always heard it said that very low volume traded stocks can fall in value an awful lot
Click to expand...
Only if there's a massive sell off.
>60% of the free float of IRES is held by institutional investors - funds, pensions, etc. There have been days when individual funds have purchased >1m shares, so there's obviously plenty of shares exchanging hands when the price is right.

I doubt the volumes differ too much from UK REITs with a similar market cap.

It's certainly not something that has ever crossed my mind as a concern, and Irish REITs make up a material share if my non pension assets.
 

well thats good to know , i doubt my choices sometimes so even though i decided to only invest in REITs in terms of property anymore due to having enough bricks and mortar property , i was beginning to wonder if those irish REITs were too good to be true

from observing the on the ground market recently , it sort of beggars belief that some people buy a house delivering a mere 5% yield when a REIT pays 4% ( or at least did when i bought ) , i know you can leverage when buying real property but a lot of BTL right now are cash buyers so they could buy REIT,s too
 
jpd said:
What stock are you talking about?

As an example -Microsoft stock trades less than 1% on average every day on the Nasdaq, Total the same in Paris, Llyods Bank UK ave t/o 237M out of a float of 67B shares
Click to expand...

its against the rules to indentify individual stocks but its an irish REIT that exclusively focuses on residential
 
I think we are allowed to discuss the ins and outs of investing eg low stock turnover and use various companies to explain the how and why but not to promote or otherwise the stock in question.

Many stocks have a low turnover ratio - but whether this is a problem or not depends on your order size

If the order book of a stock is such that your order would take the first ten positions to fill, then obviously your order will move the price of the stock.

If you order is small compared to the order book, then there is little risk of affecting the price one way or another.

The last few times I looked the order book for IRES was 50-60,000 on both sides with a spread of maybe € 1 in total so an order for 10-20,000 shares would have been filled relatively quickly and painlessly

If you are in the market for 200,000 or 300,000 shares then it is a different question

But the same can be said of all stocks.

As REIT go, IRES is quite small. The biggest European REITs are valued at € 10 Billion and above. IRES market cap is € 850M
 

i wasnt buying tranches of 200,000 , i was buying 20 thousand and still found it difficult going , perhaps i just happened to try it on a particularly thin volume day ?

ive a hundred thousand euro in both the residential REIT and the Commercial REIT that operates in Dublin

the residential one is up over 15% since i bought , the commercial is flat
 

Good luck with the Investment Galimh, but I would be nervous about taking so much country specific risk.
Especially as Ireland is a small country, with some of Europe's highest property prices combined with some of Europe's lowest property densities.

I think a REIT ETF like IPRP = iShares European Property Yield UCITS ETF
Gives you good diversification with no currency risk.

In 2007 I was almost fully invested in Irish Banks and Irish Constructions stocks, so I'm a zealot when it comes to diversification now!
 
The trouble for Irish investors, is that ETFs are heavily taxed compared to REITs themselves

However, you could buy shares in three or four European REIT to spread your exposure across Europe
 
jpd said:
The trouble for Irish investors, is that ETFs are heavily taxed compared to REITs themselves
Click to expand...
True, but I would argue that with REIT's you expect the majority of your return to come from the Dividends. Not from price appreciation.
 

that ETF REIT has even thinner trading volume than the irish one im referring to
 
Unless you're a Day Trader, Trading Volume is irrelevant.
Anyway, all ETF's have market makers, meaning, in the extremely unlikely event that you you couldn't find a buyer or seller to take the opposite side of your trade, the ETF will step in, take the opposite side of your trade and then either create or destroy ETF shares by buying/selling the underlying securities.

In relation to IPRP - If you check it out on justeft.com, it's traded on 7 different stock exchanges in 3 different currencies, with a fund size of almost 1.6 Billion with a B Euro. Over all the exchanges, It's trading volume will be far greater than the Irish REITs.
 

I'm not a day trader but trading volume is more important than you describe
 
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