Ediston Property Investm... Share Discussion Threads

[williamcooper104] 18/8/2023 12:34

Yep they do - but remember that's 90 percent of taxable income With capital allowances that's often about 70 percent (the US has similar deductions for depreciation/capex) Most reits do not need to distribute 90 percent

[marktime1231] 18/8/2023 11:41

Oh hang on. US REITS have the same distribution rules as UK ones, 90% of net income must be paid out, so cover is moot. NAV gain prospects? Rent prospects over debt costs? Back to first principles, all else being equal it is the yield they pay eg high quarterly income or good monthly income. Provided they are well backed, well managed and do not face a refinance cliff edge.

Realty Income and WP Carey are both trading at lows because of the general market gloom. And yet Realty Income is so well backed it is continuing to invest heavily in high yield properties. Diversified giants. Suppose you could pick relatively small US REITs operating in hot cyclical sectors but why take the extra risk unless there is particularly high yield on offer. Like a US-version of AIRE.

It feels like it all boils down to entry point, O at $50 and WCP at $60 would be really attractive. Fondness for monthly income might tip me towards O, and that history of ever increasing reliable payment ...



Red flags anyone?

[williamcooper104] 18/8/2023 04:44

It's far from perfect but as a get into US REITs start, the Seeking Alpha platform is well worth a look Yep - own a FTSE 100 ETF and about 70 percent of it has fx exposure You can only eliminate it at expense of having a very concentrated portfolio of UK REITs, small caps and such

[ramellous] 17/8/2023 20:55

If you can watch the US broadcast of cnbc at 11pm tonight U.K. time, Jim Cramer’s Mad Money programme I think has Realty income on as a guest.

[marktime1231] 17/8/2023 18:11

Thanks wc the SIPP admin solving the wht problem is how I remember things from another overseas dividend stream, and that is where I would be reinvesting proceeds. Fx is what it is can't be helped.

I know very little about US REIT performance and valuation. Worth studying O and WPC then, concentrating on yield, dividend coverage and exposure to rising debt cost.

Very interesting deals going through, some happy to take cash at 65p (before this press report of a deal with O maybe) while others are betting long at 70p.

[williamcooper104] 17/8/2023 17:15

Nope - for ISAs you suffer the 15 percent WHT - so best avoided for ISAs - save them for UK REITs - that's the best tax free return as REITs don't pay tax and then neither do you No WHT on US bonds either; but usually on preference shares - many US REITs have prefs and they're often a good fixed income alternative so long as not in an isa

[gonsan] 17/8/2023 17:04

Hello WC104, does the tax workings apply to Isas the same as SIPP in this case?
Meaning, do we receive the whole dividend or is there anything withhold in the US?
Apologies for the question, I don't know if it applies like for UK REITs.

[spectoacc] 17/8/2023 13:44

Indeed @Wc104 - all that really matters, what the assets are bringing in (unless your business is trading those assets).

[skinny] 17/8/2023 13:17

The RNS :-

[williamcooper104] 17/8/2023 13:16

Don't forget US REITs hold property at depreciated cost and don't revalue So they get valued mainly on just cashflow - part of the reason they perform better as not managed for red book

[williamcooper104] 17/8/2023 13:14

Os long term returns are c13-14 CAGR

[williamcooper104] 17/8/2023 13:13

Not at all - US REITs historic performance is far better - WPC is currently yielding close to 7 - and that's on a c1.2x coverage - so actual yield is c8.5 - US REITs have this strange idea that you should actually cover your dividend The treaty withholding tax of 15 percent is really easy to claim on line - you don't pay any WHT in a SIPP and if holding personally you can set the WHT against own uk income tax charge Fx charges from UK brokers are the one to watch out for - IBKRs fees for that are tiny £20 relative to with most UK brokers £10-15k per £1m traded (its not that hard to trade £1m on an average SIPP over several years)

[marktime1231] 17/8/2023 11:42

Citywire reporting this as a premium deal is stretching what we know.

Certainly some insider dealing going on, Investec taking full advantage. What is to stop Realty Income or its advisers and major shareholders from hoovering up stock at 70p if there is an 80p deal on the table?

I note that Realty Income with ticker "O" on the NYSE is famously a monthly dividend payer and seems to be well backed and rated. 26c gross per month on a share price of around $60. Would it be stupid to invest in US property income from the UK? Not that a 5% yield would tempt me, but if the share price drops to ...

[williamcooper104] 17/8/2023 09:37

Well done - good spot during covid I bought in relativity recently - and have added on recent news flowIt retrospect I do wonder if the rather curious RNS was carefully crafted to disclose enough info to allow insiders to load up but not so much as to move the price up close to NAV/bid level

[flyer61] 17/8/2023 09:10

EPIC remains my biggest equity holding. Sold a small amount yesterday. During the pandemic it became obvious that RPs were doing very nicely even if the REIT share prices associated with them were super sickly. Calum has done a really good job with the assets he has to work with.

If the BOD want an example of how to get monies quickly back to their owners then look no further than NBMI. The BOD have pulled finger and are running down quickly. It can be done but this is the UK and many people have their snouts in our trough and have large elbows. It was ever thus.....

[2wild] 17/8/2023 09:07

They could make a start by returning Cash Holdings Immediately, as they have no intention of investing it.

No doubt it will take months before we see any cash from disposals.

[nickrl] 17/8/2023 07:05

They've got to ask TRY first whether they will accept the deal!!

[battlebus2] 16/8/2023 19:41

RNS likely in the morning 🤞

[hindsight] 16/8/2023 18:15

Thank you, hope source correct

[shauney2] 16/8/2023 17:47

httPs://citywire.com/wealth-manager/news/giant-us-reit-poised-to-clinch-epic-says-report/a2423817

[nickrl] 16/8/2023 16:25

@WC failure to have that cash earning money is almost criminal that would have covered the fees Edison have been paid to sit on their backsides not their choice i know but these BoDs have failed shareholders well the longer term ones.