I think compared to other Reits, DXC is in a well position
1. Our leases are long and with blue chip tenants 2. we are less affected by rate expansion as our purchase yield is usually not too bad, they are usually above 6% 3. our turn over will be less affected by the economy as its non-discretionary spending 4. petrol stations are still in high demand by both retail/sophisticated investors for the points mentioned above 5. because of points above and the sheer number of stations we hold in the Reit, we will be able to offload them easier and reduce our gearing as compared to other reits. Try to sell one petrol station is much easier than selling an entire office building in the CBD 6. We are near or at the peak of the interest rate cycle 7. I think there will be a lot of capital inflow into western countries, particularly australia from China due to the economic conditions there and the outflow of capital will only accelerate, these money will need to go somewhere and where else to better park your money to generate a decent/safe/hassle free return than long WALE assets ?
DXC Price at posting:
$2.45 Sentiment: Buy Disclosure: Held
(20min delay)