Income seekers: Is now the time to stock up on REITs? | Motley Fool Australia: "Scentre Group Ltd (ASX: SCG). Shares are hot property (pun intended) thanks to a strong US dollar and growing Euro and GB Pound exposure.
Shareholders pay a price for this exposure however, with Westfield having Net Tangible Assets of $3.72 per share to its name according to my calculations (net assets attributable to Westfield divided by number of securities – from the Dec 31 report). Westfield is one of the faster growing REITs however and it does have a world-leading stable of assets.
Scentre Group Ltd (ASX: SCG) – yields 5.3% franked to 27%, up 21% for the year
It seems only appropriate to include Scentre Group alongside Westfield; Scentre Group being the domestic equivalent of WFD’s international operations. Strong specialty store growth and a similar focus on major shopping centres is expected to deliver similar returns to Westfield over the long run.
Installation of WiFi and a digital advertising network across a number of centres allows intriguing new ways to engage with shoppers and I’m not betting against Scentre Group in the long run. Without the foreign currency exposure, Scentre Group trades at a 27% premium to its Net Tangible Asset value of $3.04 per share."
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