My investment in FRI is based on a number of factors that I...

My investment in FRI is based on a number of factors that I thought were relevant – they maybe wrong, but here they are:

1. FRI pays a dividend, and the yield on investment in a low FRI-share price setting, and a low interest setting is attractive.
2. Share buy-backs enhance Point 1
3. Apartment building is a cyclical sector, but compared to other developers, FRI as a virtual company employing only about 20 people, can sit out a down-turn better than others.
4. In a sector that uses high leverage, FRI's lower-level-debt-leverage model enhances Point 3. FRI does not borrow to cover the land, and when it does borrow to cover construction, the percentage of the total is low enough for it to get a good rate of interest from Tier 1 banks – no mezzanine finance is used. FRI's activity is more limited to what the market will buy, not what lenders will lend.
5. Perth may not suffer as much from the apartment glut, which also enhances Pointy 3. There is a tendency for commentators to be less than specific when on apartment-glut topic. The article at http://www.*.com.au/these-australia...in-new-apartments-in-the-next-2-years-2016-10 is different, and worth reading when thinking about shareholdings in FRI.
6. FRI's arrangement with Hanssen is symbiotic – steady business for Hanssen allows it to quote lower prices for FRI. Also, Hanssen handles the grubby battles with trade union officials, leaving FRI's management to focus on marketing and lining up future projects.
7. There is a great deal of relevance to what FRI does, and the result is that investors (both in units and JVs) come to FRI on a repeat basis, as do landholders and councils who want sites redeveloped.
8. FRI has been well run for some twenty years, and John Chan and Daryl Pateman can take most of the credit for this. If anybody knows what FRI's prospects are, it is this duo, and both regularly buy shares.
9. Although Daryl has worked for FRI for most of his existence, he started very young, so he is relatively young for an MD of an ASX-listed company, which means that life as we know it will not fall apart when John Chan retires.

I would hold more FRI if I could get my hands on the funds to increase my current holding of 193,000 shares. I specify my sentiment as hold, because that is what I now must do, and I only flag the buy sentiment when I am actually buying. I am a long-term investor who likes dividend-paying stocks, and I can sit out a low SP for years if I believe this makes sense.