Ann: Half Yearly Report and Accounts, page-21

It’s quite rare for a listed REIT to delist. I can only think of two instances in relatively recent times: Elanor Retail Property Fund (ERF) and US Student Housing REIT (USQ). ERF did so when times were good (underscoring how poorly marketed/managed it was), while USQ delisted after interest rates rose quickly and a substantial discount to NTA became persistent.

Personally, I don’t want my long-term investments to delist simply because the share price trades at a discount to NTA. I was a holder of PGG and was one of the very few to vote against delisting last year. Why? One of my portfolios is an income portfolio: I want earnings per share and distributions to be maintained or increased. In such cases, a lower share price implies better buying opportunities. In practical terms, I wanted to keep buying PGG at a 10% to 20% discount to NTA, because the earnings yield on the share price was much higher than earnings yield on NTA per share. Also, the fund was good (meeting/exceeding their targets). I can understand that investors not buying shares of a fund they own may feel differently.

Before REITs crashed in 2022, many were trading at premiums to NTA, cap rates were low, and managers were issuing new shares regularly (to buy property on low cap rates). In those times, it was tougher to find attractive places to put money to work. Those times will likely return after interest rates are reduced for a decent period of time.

As Buffett said, the stock market is the only place where people "run out of the store when things go on sale." When you invest for income long-term, and continue to invest, Buffett’s paradoxical remark really sinks in.