Hey Dejavoo,
I'm also a long suffering FKP/AOG investor. Things are looking much better than they were years ago, but still some way to go.
I can't provide any investment advice
, so I'll give you a list of the A-REITs that I am currently invested in:
ABP, ANI, AOG, CQR, DXS, FET (was AEU), GDI, GPT, IDR, INA, IOF, RNY, TIX.
I don't see any A-REITSs being undervalued at the moment given most are above NTA, but if I were to purchase more I'd concentrate on:
GDI: has great financials, PE 10.8, DY 8.5%, gearing 21%, interest cover 5.9x, Cap. rate 8.0, share price is below NTA, but it's a tiny fund so a little risky.
IDR: PE 11.5, DY 8.5%, gearing 33%, interest cover 4.5x, Cap. rate 8.3%, WALE 5 years, share price is below NTA.
TIX: PE 11.3, DY 8.6%, gearing 42%, interest cover 3.9x, Cap. rate ?, WALE 6 years
ANI: PE 11.8, DY 8.1%, gearing 33%, interest cover 4.8x, Cap. rate 8.5%, WALE 5.1 years
PE is based on distributable income (FFO), not stat PE.
stlamc is the guy to talk to regarding which sectors to be in (i.e., office, industrial, retirement, child care, etc). I think it all depends on how the property cycle proceeds from here. With low interest rates and an increasing population I can't see valuations falling in the short term, so buying A-REITs, even those above NTA, should still provide low risk return (distributions + growth) much above bank interest for a while yet.
