I have a question, why is it commercial property funds are been slaughtered on the ASX? Am I missing something?
For example, stock code OIF (Orchard http://www.orchardfunds.com/Products/Listed Products/Orchard Industrial Property Fund.aspx ) owns 27 industrial properties around australia. 60% of the tenant base is woolworths, and average lease time is 11 years. Its yield is from rent collected. Not developments etc. So from what I can see, this yield is very stable.
They pay a dividend of 5c PA increasing each year, so by my calculations, this is paying over 20% PA yield on its current price, yet people continue to dump this stock with few buyers in the market.
Is there something I'm missing? Is woolworths likely to default on their property leases?
For example, stock code OIF (Orchard http://www.orchardfunds.com/Products/Listed Products/Orchard Industrial Property Fund.aspx ) owns 27 industrial properties around australia. 60% of the tenant base is woolworths, and average lease time is 11 years. Its yield is from rent collected. Not developments etc. So from what I can see, this yield is very stable.
They pay a dividend of 5c PA increasing each year, so by my calculations, this is paying over 20% PA yield on its current price, yet people continue to dump this stock with few buyers in the market.
Is there something I'm missing? Is woolworths likely to default on their property leases?