I could write a long, up-ramping post about this REIT and the other two I currently hold. I am keen on all three. Stuff it, I probably will anyway!
People are looking for yield with interest rates on term deposits negligible. Westpac is predicting property price growth of 20% over two years. Commercial property will rise with the tide. That will increase our NTA further, and decrease our already-conservative gearing further. At recent NTA valuations we've been buying $1.00 in property (a hot sector) for $0.75c. Then there's the 5% buyback at historically low prices, a realisation that quality retail space will probably be okay, and our smart move of a heavier weighting towards logistics property -- which will catch the growth in internet shopping and services.To me, it's a no-brainer. I wish I'd bought another parcel a couple of weeks ago, but am happy with where I put that money (into another REIT I am happy to hold).
Bargains do not remain as bargains for long; people realise there's a discrepancy between the share price and share value.
If you believe the Australian economy and property prices will do well in 2021/22 with zero interest rates, COVID vaccine, and a huge injection of money into the economy, it's a pretty safe bet GPT will likewise do well. In the meantime, I'm looking forward to receiving my dividend cheque in the next few days.
GPT Price at posting:
$4.58 Sentiment: Buy Disclosure: Held
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