i will ask you the same DIVIDEND question, as im mainly buying...

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pete11

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20/04/24

10:32

Post #: 73436510
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Originally posted by forbearance1: ↑

Inflation running hot means higher for longer interest rates, hence why I believe we are back to $7 from $8. Come 1st of July, wage rises will rick in and super increased to 11.5% (approx 5% more funds flowing into superannuation accounts).

I like Goodman and have held since 2008, but their current yield isn't attractive. Yes, they are industrial, yes they still have a shitload of industrial sites in the innercity which will get sold off to residential developers giving them a heap of cash to invest in new projects.

But after Goodman, i believe Dexus is the best listed property play. The yields are attractive and they have prime assets in prime locations. Buildings like Australia Square and the MLC centre are iconic and will always be popular.

Continued strength in the residential market and weekness in commercial will see re-develpment opportunities arise in the coming years.

Residential supply will be constrained, no because of zoning laws, but because of construction costs, compliance costs, mandated affordable housing (ruining project economics). The continued constraint of supply will eventually cause sale prices and rents to lift an additional 50% - 100% from today's prices over the next 5 years. Only then will we see a construction boom and supply start to come to market.

Yes, Dexus is commercial, but all real estate is connected. The next resi property cycle outlined above will potentially remove 20% of office space from the CBD. Older buildings will be converted / demolished for residential. Removing the supply of commercial space will increase demand for remaining spaces.

I'll be accumulating as much DXS as I can over the next few years every time it dips to around $7

Yes there is still risk in the sector, but at these prices I see a lot more upside.

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i will ask you the same DIVIDEND question, as im mainly buying for yield not capital growth, do you think DXS can maintain that 48c divvy for at least the next few years? could it drop to 46c-45c? do you think 5yrs+ they could raise the divvy back to 51c+?
how likely is this?

DXS Price at posting: $7.06 Sentiment: Buy Disclosure: Held
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0 Great analysis

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