REITS General opinions.

In order to understand why REITS don't track property prices, you need to understand how they make their money. REITS don't buy properties and then sell them hoping to make money. They buy and rent them out, to make money. The rental yield is what's important to them. So they are a good substitute for owning a rental property, not so much for the price of houses.
 
AJAM said:
In order to understand why REITS don't track property prices, you need to understand how they make their money. REITS don't buy properties and then sell them hoping to make money. They buy and rent them out, to make money. The rental yield is what's important to them. So they are a good substitute for owning a rental property, not so much for the price of houses.
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If capital appreciation is non existent, how are they a better investment than say government bonds?
 
m.independent.ie

Ires Reit will examine possible sale

The country's biggest private sector landlord will consider a potential sale of its almost 4,000 apartments and houses, valued at around €1.43bn, as part of a strategy review just launched.
m.independent.ie m.independent.ie

Looks like ires reit is going to be taken private and its property portfolio sold off. So there will be no reits left in the Irish market.
 
Don't see how "will consider a potential sale" as one of the options in a strategic review which will not be launched for a few months can be "looks like"
 
Great result for Vision Capital - if they bought-in near the lowest values last year (€ 0.86) they are already quids in today with the price at € 1.13, + 30%

I'd happily take that and walk away
 
Just shows you that share price doesn't always reflect full value in a stock. The reits were undervalued and suddenly the share price shoots up because that value could be quickly realised by taking private
 
That's normal for REITs and investment trusts generally, they frequently trade at a discount/premium to their net asset value.
 
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I see that Capreit the largest investor in IRES have come out and are backing the motions put forward by Vision Capital. Shares are just under 1.19 now
 
IRES board defeated the activist's at today's EGM

The share price is back on its way to € 1 or less

Presumably the activists' sold their shares a few days or weeks ago and pocketed the gain
 
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