Yes the run up in price of IOF and many other A-REITs has been surprising, with many far beyond their NTA. Looks like punters are chasing yield at any cost at the moment. IOF has a PE of around 15+, distribution yield of only 4.5%, and more importantly an NTA of only $3.35 as compared to today's share price of $4.20+.
Having held IOF since 2009 it's been great run, but given the above metrics I took the opportunity to sell most of my holding at $4.20. There are still quite a few A-REITs paying 8%+ with better PE and NTA metrics, such as GDI, IDR, RFF, and ANI. I've been gradually transferring into those four stocks over the last year but they are perhaps a little more riskier than IOF due to their smaller size.
IOF Price at posting:
$4.20 Sentiment: Sell Disclosure: Held
