I was having a look at one of the buildings for sale (retail commercial). The tenant has been very successful over the last decade despite Covid. the yield was about 5.5%.
my thoughts were while this tenant has been very successful but the business will have an end date and you need to then find another tenant. There is no guarantee that the tenant will run a successful business.
I was trying to understand why you would buy a Commercial operation with repair shopfront factory etc. You have tenancy risk, maintenance expenses, upfront investment, no discount to NTA
yes, your property should increase in value but it seems very high risk unless you have a few properties and can mitigate the risk but that is significant capital investment.
other than the risk associated directly with this share what is the reason why many listed REITs are a discount to NTA? Is it a question about the quality of management?
cheers
HCW Price at posting:
$1.01 Sentiment: None Disclosure: Not Held
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