So you are buying a REIT which distribute 100% of its earnings for capital gains?
That's an interesting strategy....
Particularly now when CLW and almost every listed and unlisted REITs are scrambling to sell assets in order not to breach debt convenants.
Any sale in this buyer's market will lower valuations which in turn will bring REITs closer to breach convenants and trigger more asset sales.
The cycle will go on until the yield on offer compensate for the risks.
What's the equity risk premium for REIT? Long term average is about 3.5-4% and current 10yr bond yield is 4.1%.
I let you do the math but there is still some way to go.
In the meantime distributions from CLW are taxed at your marginal tax rate just like a term deposit or a debt LITs.
So you are buying a REIT which distribute 100% of its earnings...
Add CLW (ASX) to my watchlist
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Last
$3.95 |
Change
-0.040(1.00%) |
Mkt cap ! $2.840B | |||
| Open | High | Low | Value | Volume |
| $4.00 | $4.02 | $3.95 | $4.049M | 1.021M |
Buyers (Bids)
| No. | Vol. | Price($) |
|---|---|---|
| 6 | 11227 | $3.95 |
Sellers (Offers)
| Price($) | Vol. | No. |
|---|---|---|
| $3.97 | 19147 | 3 |
View Market Depth
| Last trade - 16.10pm 02/10/2024 (20 minute delay) ? |
| CLW (ASX) Chart |