Red or Green REIT?!

Tags

blind pool, commercial property, Franklin Templeton, Green Property, Green Property Ventures, Green REIT, GRN, IPO, Ireland, Irish property, Irish shares, Irish value investing, NAMA, NAV premium, Pat Gunne, Paulson & Co, Pimco, Stephen Vernon, The Great Irish Share Valuation Project

Green REIT (GRN:ID) is Ireland’s first real estate investment trust. And the first ISE main market listing in over 5 years (a shock for the somnolent exchange staff, I’m sure). In fact, the IPO was so unprecedented, even the Minister for Finance turned up – here’s his speech! Not to mention the press, who fell on the story like a pack of dogs. But really, what do you expect? If there’s one thing that unites people, it’s a fervent desire for property to increase in value. Which is particularly true of Ireland, especially now – we blew the bubble we had, and Lord we so desperately want it back…

Yes, bored real estate agents want to treat buyers like scum & regain the respect they deserve. Mortgage holders just want to return to break-even, so they can finally relax & enjoy those gigantic monthly mortgage payments for the next 20 years. Old tyme reporters are sick of being forced to write real (i.e. non-property & interior design) stories, while their ad departments are tired of calling ’round begging for business. The banks dread visiting their own bank manager (NAMA & the Dept. of Finance) – while acting the gombeen with recalcitrant borrowers is somewhat problematic when they were reduced to beggary themselves not so long ago. As for the politicians, they just want to close their eyes & wake up when everything’s alright again…and then take all the credit! Finally, we have the poor old taxpayer…he just dreams of getting back to the good old days.

Because property solves all problems – doesn’t it?!

But I have to confess, I’m more than a little fascinated by the Green REIT IPO. Is it me, or did we just hit an inflection point? Could this be a new zeitgeist we’re witnessing? Well, if the collective national psyche could will it, Ireland’s certainly right about bloody due now… Oh boy, that’s a huge subject to tackle – for the moment, why don’t we take a closer look at:

Advertisement

Portfolio Allocation (XV – Emerging & Frontier Markets)

Tags

asset managers, BRICS, closed-end funds, developed markets, dollar-cost averaging, emerging markets, frontier markets, Hong Kong, Howard Marks, NAV discount, NAV premium, portfolio allocation, reductio ad absurdum, Trading Economics

Continued from here. [And most definitely, this is the last post in the series!]

This might actually be the perfect time to write about emerging markets – the developed market douche-bags (DMDs) are out in force again, warning us emerging markets are tanking… It’s a common refrain: a) developed markets are in recession, emerging markets must tank, b) developed markets are showing zero growth, emerging markets must tank, c) developed market growth’s bouncing back & rates are rising, emerging markets must tank, and d) well…emerging markets simply must tank!

2013 may turn out to be even sillier. So far, most of the year’s been spent denigrating – nay, reviling – emerging markets, simply because developed stock markets have done so well. Of course, the sub-text here is ‘why don’t you just forget/sell emerging markets (forever) & just stick to developed markets?!‘ Christ on a rope, that’s like handing out bloody gold medals to whoever took the most steroids… And now developed markets have caught a dose of the colly-wobbles in the past week or two – again, DMDs would have you believe it’s another good reason to sell emerging markets. Yes folks, we’ve finally reached the point of reductio ad absurdum:

i) Developed markets go up – sell emerging markets,

ii) Developed markets go down – sell emerging markets, and

iii) Don’t forget i) & ii).

German Residential Property V – A Buy!

Tags

Barmer Wohnungsbau, catalyst, commercial property, convergence, correlation, Deutsche Wohnen, EPRA NAV, German bunds, German property, Germany, Karl Ehlerding, KWG Kommunale Wohnen, large cap stocks, marathon, NAV, NAV discount, NAV premium, Net LTV, North Rhine-Westphalia, Price/Book, REIT/MLP sector, rental yield, residential property, Sirius Real Estate, small cap stocks, Stavros Efremidis, Taliesin, value investing

Continued from here. A 5-part series might seem like overkill – hmm, I’ve done worse 😉 – hopefully, you found something useful in each post. And, of course, I wanted to illustrate the research (& contemplation) required for any real investment edge in your stock-picking & portfolio. Peer/sector analysis may perhaps be the most rewarding component – though it drives me to distraction occasionally…

Picture it: You come across a random gem – you suspect it’s best of breed & should be pounced upon asap! Instead you take a breath, step back & force yourself to research it (and its peers) from all conceivable angles. Meanwhile, your gem’s share price begins to ascend rapidly, and you’re totally missing out… I’m suffering that with one idea I want to exploit – the apparent gem of the sector’s jumped 20%+, gahhh!

But investing isn’t a sprint, it’s an (often painful) marathon. We all remember a satisfying quick-fire buy that worked out, but we’re really just trying to forget the pain of misguided duds… Disasters we might perhaps have avoided if we’d researched them a little more, or picked the better horse. Research & patience are ultimately far more profitable than grabbing the first nice stock you see. Also, peer/sector analysis is essential to my preferred approach to investment:

Great Story, Great Stock & Great Price