Green - REIT

Fitz123

Just wondering did anyone invest in this. 1st REIT in Ireland, got lots of publicity and the big International boys have bought into it.

Shares issued at €1 each, less costs meant when floated the NAV was €0.97 per share. Currently trading in the high teens and I think touched €1.20 today. Given all that is there is the structure, cash and a potentially very well paid management team, do you think they are overvalued ?

Assume current price reflects hype and International investors wanting to get a "piece" of Ireland. Once other REITs list, assume this one will revert to NAV or below.

gordongekko

Fitz123 wrote: »

Just wondering did anyone invest in this. 1st REIT in Ireland, got lots of publicity and the big International boys have bought into it.

Shares issued at €1 each, less costs meant when floated the NAV was €0.97 per share. Currently trading in the high teens and I think touched €1.20 today. Given all that is there is the structure, cash and a potentially very well paid management team, do you think they are overvalued ?

Assume current price reflects hype and International investors wanting to get a "piece" of Ireland. Once other REITs list, assume this one will revert to NAV or below.

personally I would prefer to invest in this than one of the banks. Should be a decent dividend and some long term capital growth.

Fitz123

Well better than one of the Irish banks yes, but paying well above NAV off the bat, while I think there is good value in certain Irish properties at the moment, unless the share price fell I wouldn't consider this one. I'd wait for another REIT.

I was tempted to subscribe to the IPO with Davy, though the €100k minimum put me off (Not sure if those that subscribed for €100k actually got it.) Either way a 20% return in a few weeks on that kind of money ain't bad !!

Value Hunter

Fitz123 wrote: »

Just wondering did anyone invest in this. 1st REIT in Ireland, got lots of publicity and the big International boys have bought into it.

Shares issued at €1 each, less costs meant when floated the NAV was €0.97 per share. Currently trading in the high teens and I think touched €1.20 today. Given all that is there is the structure, cash and a potentially very well paid management team, do you think they are overvalued ?

Assume current price reflects hype and International investors wanting to get a "piece" of Ireland. Once other REITs list, assume this one will revert to NAV or below.

Would of been interested but it almost immediately started trading at a large premium to NAV. People are still property obsessed in this country, so wont be holding my breath for it to lower nearer to the NAV

Management also took a considerable chunk of the shares if memory serves me correctly, overall i'll give this one a miss

gordongekko

Fitz123 wrote: »

Well better than one of the Irish banks yes, but paying well above NAV off the bat, while I think there is good value in certain Irish properties at the moment, unless the share price fell I wouldn't consider this one. I'd wait for another REIT.

I was tempted to subscribe to the IPO with Davy, though the €100k minimum put me off (Not sure if those that subscribed for €100k actually got it.) Either way a 20% return in a few weeks on that kind of money ain't bad !!

if you were investing over €100k you would probably find an investment property yourself that will yield better over time. But over 20% in a few weeks is some return.

This bull run is making it difficult to pick decent stocks at decent prices and timing will be the key to all future share purchases for me and at this price its just a little rich for me.

Fitz123

Personally I like the liquid in a reit such as this, rather than being tied into a property. As mentioned above, this one is too rich at the moment to consider though !

hfallada

gordongekko wrote: »

if you were investing over €100k you would probably find an investment property yourself that will yield better over time. But over 20% in a few weeks is some return.

This bull run is making it difficult to pick decent stocks at decent prices and timing will be the key to all future share purchases for me and at this price its just a little rich for me.

REITS are a more tax efficient way of investing in property. You buy a house to rent it. You have to pay a large chuck of the rent in tax and more in the future as mortgage interest relief is gradually done away with.

Where as CGT is much lower and you dont have the head ache of bad tenants etc

Fitz123

Oh dear it was at €1.22 at one stage today. Quite a bit over NAV !

gordongekko

hfallada wrote: »

REITS are a more tax efficient way of investing in property. You buy a house to rent it. You have to pay a large chuck of the rent in tax and more in the future as mortgage interest relief is gradually done away with.

Where as CGT is much lower and you dont have the head ache of bad tenants etc

you also have to pay tax on dividends

Value Hunter

Fitz123 wrote: »

Oh dear it was at €1.22 at one stage today. Quite a bit over NAV !

Shocking isn't it, they have absolutely no property yet, they're simply a cash shell company at the minute.

Who would pay €1.20 for something valued €1.00???

The Irish obsession with Property continues



Insanity: doing the same thing over and over again and expecting different results.

Albert Einstein

BrokenArrows

With such low volume anyone who invests in this could get hurt very quickly.

gordongekko

The green property have a good track record. But with further reits due to be launched they will have their work cut out to maintain this premium.

Fitz123

Still over €1.20, agree that Green have a good record but v risky for an individual investor to buy in here.

Looking at Seeking Alpha, the US REITs seem to be very volatile at the moment with Tapering of QE on the horizon, and the resulting increase in rates.

Fitz123

€1.23 today !!

Looks like Goodbody are launching another REIT.

http://www.independent.ie/business/irish/templeton-ups-its-green-stake-as-rival-reit-nears-29493548.html

Wonder will it be another €100k minimum investment. Anyone that invested €100k through Davy in the Green REIT has done very well.

Fitz123

Good post on it by Wexboy

http://wexboy.wordpress.com/2013/08/29/red-or-green-reit/#more-6030

Value Hunter

Fitz123 wrote: »

Good post on it by Wexboy

http://wexboy.wordpress.com/2013/08/29/red-or-green-reit/#more-6030

Very good read, the more I read on this REIT the more negative I become. I think its just a cash cow for senior management.

Firstly the company is going to be led by a separate company, with the similarly sounding name called Green Property REIT Ventures

From their website

'The Company has an experienced Board, chaired by Mr. Gary Kennedy and will be externally managed by the Investment Manager, Green Property REIT Ventures Limited'

Secondly management have taken a 3.2% chunk of shares worth €12.2 million

They also get annual fees of €2.99 million and an annual expense allowance of €3.2 million

All in all management are getting a nice €12.2 million to start off with, with an annually €6.2 million added on for good measure

Oh and if they reach their target and achieve a 15% ROI they get another €3 million bonus


My view is the management company was going to be involved in commercial property anyway as its their business, so they thought why not set up this REIT and milk the shareholders. The extra costs would be negligible as they already run a property company. Indeed the IPO costs were all paid for in the IPO itself!

I'd be very interested to see how much capital did management actually invested in this REIT :rolleyes:

I reckon in 10 years they can make €80 to €100 million for themselves

Fitz123

I believe mgmt investment €10 million for their stake.

Value Hunter

I think they have a subscription right for 10 million shares at €1, I don't believe they've actually put it into the company. At least not yet

wired117

Do you think share will keep going up or spiral downwards?

1st dalkey dalkey

Green is the first REIT in Ireland. The concept works well in other jurisdictions, but then so does banking. So I suppose you have to decide whether you are an investor or a gambler.
There is no track record and the other posts are less then encouraging. Not for me at this time. Maybe when we have a few years of operation and accounts we can make a reasonable judgement.

Farmer Pudsey

Green Reit has now a stable companion on the ISEQ Hibernian Reit. Both seem to be trading above there entry level. However GR may have to do a capital rising effort. Anybody know much more about them

Dardania

Green REIT's first results are out:

http://www.greenreitplc.com/download/reports/Green%20REIT%20Plc%202014%20Results.pdf

I may be reading it incorrectly, but earnings per share are 12.4 cent? Apart from DIRT, nice result