well, you given a great investment idea - the $100 to $500 mill, under valued REITS
mind you, one needs to pick carefully; but who would complain about a NON takeover 5% a year, with the chance of the odd 25% takeover here and there
and I am not a great understander of these management structures, but I have heard (and seen) enough gouging to need to understand more; I kind of assumed it would 'not be allowed' to set up structures that are for the benefit of the management only and not for the share holders; I do remember one I invested in, I think USR?, it was a US REIT that owned homes and rented them sprinkled around the country; the first half yearly they gave the report... something like a $100 mill value of property, mortgaged to 60% at 3%, but yielded like $8 mill in rent; but the management fee was exactly the rent received, like your local Raine and Horne charging an investor 100% of rent collected as the fee
Now they distributed like 4% as dividend, but it turned out they just returning 4% of YOUR money to you; as the net asset value fell 4%; they did this for a couple of years (I sold at a small loss quick smart), but they did this for two years, until they privatised the trust and investors got half their money back
the point of my story is VTH did not look like this to me; it looked a bit more simple and the management was simple and aligned; I did not read much into the management buyout... perhaps I should have
I wonder where the share will trade after re-opening; I think I will take my $1 if it is there on market and/or I want to read closely what management say
VTH Price at posting:
78.5¢ Sentiment: Hold Disclosure: Held
