I just found a value for gearing in the 2014 annual report: 21%,...

I just found a value for gearing in the 2014 annual report: 21%, so better than the 35% I had estimated.

Having read the annual report I came away feeling a little less convinced than before, but not discouraged enough to bail on making an investment. Among many of the positive aspects of GDI, here are some points that didn't sit well with me (note that I am usually in "glass half empty" mode prior to making an investment):

The fund is on the small side, owning only five properties with one currently up for sale.

I found this comment in the annual report interesting:

"We buy properties for well below replacement cost that have a twist. The twist might be vacancy, it might be a refurbishment, it might be a rezoning. Once the twist has been straightened we will sell the property. We are unique because of the assets we buy, because of our structure and because we sell – we are not a hoarder of funds under management."

So it sounds like they intend to flip properties on a regular basis, which is fine if they can make a decent profit, but there are risks obviously, and each "flip" results in quite large transaction costs on the sell side and then on the buy side.

On the plus side, they have a funds management business bringing in around 0.5c per share, so they're aren't purely a one-trick pony.