share buyback

A very astute/logical decision by TIX to buy back shares. This is exactly the situation where buybacks should occur, namely, when the sp is undervalued and the company's best investment of excess funds is buying shares rather than other assets. DRP is obviously switched off during this buyback, so I'll grow this one on-market for awhile.

The current competition for industrial property in OZ is well documented by TIX and others (e.g. GOZ). With a soft market for office and shopping malls, property funds have been falling over themselves to shift their portfolio more to industrial. The result is more demand than supply of A1 industrial, leading to much higher sale prices and consequently lower earnings yield (at least in short to medium-term).

It would be nice, though, if TIX could get off-market growth by having Walker build some new property on well-located land. TIX implies this opportunity on slide 18.

Note: I rarely have sentiment other than "none" for my posts.