Not so good areas- clarification i meant States. WA and SA are underperformers in the past decade with no capital appreciation. Zero economic growth, bad economy.
Tenants in those areas- ATO (Govt) and Metcash at the asking price you could even lose capital. Kogarah asset also is not CBD.
The rest of the properties are fine, the strength is mainly the Retail exposure, but its only 25% of portfolio value.
Re Yield can increase, but not materially. Even if were to acquire additional properties, the spread between borrowing cost(3.5%) and the cap rate on new properties(5.7%) isn't going to dramatically increase yield.
