Hi Tom,I have to say that WRT forum is super quiet; so it's hard...

Hi Tom,

I have to say that WRT forum is super quiet; so it's hard to get replies here (not much action, these property trusts).

I am looking at WRT as well very closely recently and as you mentioned, the dividend and the discount to the NTA is a big interest.

Please note that this is a Trust fund, so when you are saying 6.8% dividend, that is without any franking credit. At 30% tax rate, that is equivalent to around 4.76% dividend fully franked (my math is real bad, but I don't think that's far off).

The NTA is around $3.4 I think. But property valuation is not too important because you can't sell the shopping mall to realise this value at your will.

This is a very attractively priced quality asset, but everyone is afraid because of the likelihood that retail in Australia is going to face recession due to either economic slowdown or online competitions.

While this wont' affect WRT rental income, it will impact their vacancy rate and new lease incentives come renewal time. If the retailers are not making money, they will leave or demand lower rent.

Anyway, good luck!

WH