For my coverage in other REITs (Australia) check out this playlist here: ua-cam.com/play/PL78Kz6pp8Ry45XfurS884KU6SrmMY7JaT.html Timestamps 0:00 Introduction 1:08 How Do REITs Australia Work? 1:36 Type Of REITs 2:22 REIT Investments Pros And Cons 3:56 Filtering Criteria For A Great REIT (Australia) 4:46 Chater Hall Long WALE REIT (ASX:CLW) 7:17 Centuria Industrial REIT (ASX:CIP) 9:27 What I Could Do Better Next Time
David, As usual another well researched and presented video. You deliver the content well. For me it is Brickworks, dividend is 3.5% with 100% franking. Not a pure REIT but has moved into property and doing a 50 / 50 deal with Goodman group for businesses like Amazon. Keep up the goodwork, you will always have my like and support. For others it is free to you to hit the like !
I was just looking into Brickworks, and frankly I really like goodman group too (but it's a tad expensive haha) Thanks for dropping by Shane, your support means a lot to me!
I love these videos. You're quickly becoming one of my favourite UA-camrs. I've spent the last six years (until February this year) working in Beijing. If you hadn't mentioned that you're Chinese, I would never have guessed it. I was hoping you would have covered SCG, VCX, AVN and GPT as that's where subscribers are probably looking to invest and are probably wondering about the value in retail REITS given the current price levels. Although, I am very glad to hear about CLW. I've never heard of this REIT before and am very interested in doing some further research. Many thanks for the great tip. Have you thought about offering a way for subscribers to sponsor a video topic, like another UA-camr I follow does? If it's about an investment-related topic you're familiar with anyway, that could be an extra revenue stream. All the best, mate. Matthew
Hey Matthew, I am so glad you enjoyed it! So on the REITs you just mentioned I did look into it, but I think they deserve a separate video since for those it's more of a value investing opportunity. On the sponsorship idea, I am starting to hear my subscribers talk about it, so I might make that official as part of a perk on Patreon after I cross the 10k sub mark. In the meantime, you dropping by and watching already means the world to me, so thank you!
Hi David, I am loving your videos, keep making them hahaha I have been doing research on most reit companies in Australia and have decided I would like to invest in charter hall reit wale, I am wondering if instead of dividend payouts i can get paid in more shares, is this possible, if so how do I do it and which broker do you recommend? Thanks, Max
You should check google dividend reinvestment plan or share purchase plan + charterhall REIT WALE and see if they offer that. You don't need a specific broker for that!
Another cons of investing in REIT is that the distribution doesn't come with franking credits, unlike dividends on shares. Therefore, while the nominal yield on REIT may look high, the effective yield once you take into account tax would be lower (potentially much lower if you are in the higher tax bracket). By the way, why do you think a high payout ratio is a downside of investing in REIT? It is common for REIT to distribute most (if not all) of its earnings because REIT is simply a 'pass through' structure anyway. If anything, I would say a high payout ratio of REIT is a benefit for investors who are looking for income-oriented investments.
Ahh yes a good point on the franking credits, and on the high payout ratio as a downside just because comparing it to equities it has a high payout ratio. (for the beginner investors) And yes agreed, the point of a REIT is to have a high payout ratio
Very well researched and explained video David. I had been eyeing off CLW myself for some time now and think will pull the trigger on it. CIP is also a great addition to an income-investor's portfolio. Unfortunately my biggest dog in my portfolio so far has been SCG. I have learned a valuable 5-figure lesson with that one (high debts) but will nevertheless continue holding it as I don't need to sell and SCG have the best-located shopping centers in Australia. Cheers once again
I’ve got Vap in my smsf which I think holds the top 100 reits in Australia. I think long term it will be good but will likely be volatile due to covid. It’s only 5% of my super though so I’ll just let it ride long long term with the dividends reinvested.
I really like CQE, but don't know much about CMW. CQE is really good in normal conditions, but it seems that the pandemic is one of those blackswan events that actually hurts them (i didn't think that'll happen)
David Quan thanks for the answer! CQE has a lot of non profit organisations as tenants, that is really good + very high net tangible assets + a high WALE + high dividends. CMW is not really a REIT it is a big property group mainly invested in the office sector. But still really high net tangible assets and high dividends + 45% of tenants are governments. Keep going David! Do you keep your position in bubs? The recent numbers were not really good, but I think the next quarter is going to be better again. They had really high production costs, but I think that came mainly through the production of the cow milk formula.. which came in the stores in June.. let’s see how cow milk formula is going in the next quarter 😉
Thanks for your all your videos so far. If you can find some time, can you please look into why an ASX stock code ATH is trading under 5 cents when the NTA (Net Tangible Asset) is 127 cents ? This is highly unusual and it looks very cheap. In recent weeks ATH jumped to 41 cents (with very high volume) in one day only to settle back at 3.5 cents and then today jumped to around 5 cents. Similar thing happened with another stock with code DVL but DVL does not have a high NTA. So any time you can spend on ATH and DVL will be helpful. ATH is a biotech stock and not a pure tech stock so you may not cover it in your next few videos which I understand. Thank you
Brilliant Video! I like your checklist of choosing a good REIT. I strongly believe that Real Estate is one of the best investments for beginners. BTW, Now that Aussie Wealth Creation has turned Global, will you become the number 1 Aussie Investing UA-camr? 🇦🇺
The number of subs means verylittle without the impact (this is not me trying to sound all motivational), so if I focus on the content and take you on a journey, I think the numbers will speak for it self right :)
How do I create a Stake account without a social security number? Is there a way to invest into the SPDR® S&P® Global Dividend Aristocrats UCITS ETF (Dist) and WisdomTree Global Quality Dividend Growth UCITS ETF - USD from Australia?
Hey David, loving your videos been subscribed to you since 1K subs and I’ve learnt a lot! I was just wondering what app you recommend is best for starting to build a portfolio on. I use Etoro for US stocks but wanted to get an app for AUS shares to help build some passive income. Thank you! 🙏
Interesting video and easy to follow mate. During these unprecedented times it has affected the rental market and it will be interesting to see what the payout ratio is from here onwards and with possibility of a second wave.
@@DavidQuan Me too mate, with Victoria in stage 4 lockdown now and the extension of stimulus package to continue, it's definitely something to monitor on the sidelines for the time being and how REIT continue through this.
Great work David, that's as clear and concise an explanation as any of the experts. I think REITS can make up a solid, income producing core of a long term portfolio. They're not flashy they just keep on producing money for us.
@@DavidQuan maybe one day you can talking about stock with Chinese I think will have lots of people who understand Chinese will come to look your video.
@@DavidQuan thanks for your video and not many is interested in au market sadly. do you know any good source of info for australian markets? sometimes i get confused what happened and caused some shares drop sharply
08:45 increase by CPI% by default. But it is not compulsory to disclosure though so can't tell. Very well present video bro. Also would love to see your feedback on my video of SCG 2020 half year result ;)
Thanks David. A couple of questions (I live in Singapore and familiar with REITs here, but understand that there would be differences in Australia). 1. Is there a minimum payout ratio required by Australian law? 2. Do Australian REITs use rights issues to raise capital for new acquisitions and if so, are the rights issues common?
On q1, I have not been able to find the right aussie law that mandates a minimum payout ratio for REITs, but it seems that generally speaking 70-90% payout is the range here. On q2, they can, but i think they know that debt is much cheaper source of capital granted the low interest environment!
If it is that good. Uncle Sam will be printing more free money and zapping over to buy it all. You'll all work for the printing presses. I wouldnt put my money there. Bubble is gonna pop.
For my coverage in other REITs (Australia) check out this playlist here: ua-cam.com/play/PL78Kz6pp8Ry45XfurS884KU6SrmMY7JaT.html
Timestamps
0:00 Introduction
1:08 How Do REITs Australia Work?
1:36 Type Of REITs
2:22 REIT Investments Pros And Cons
3:56 Filtering Criteria For A Great REIT (Australia)
4:46 Chater Hall Long WALE REIT (ASX:CLW)
7:17 Centuria Industrial REIT (ASX:CIP)
9:27 What I Could Do Better Next Time
David,
As usual another well researched and presented video. You deliver the content well.
For me it is Brickworks, dividend is 3.5% with 100% franking. Not a pure REIT but has moved into property and doing a 50 / 50 deal with Goodman group for businesses like Amazon.
Keep up the goodwork, you will always have my like and support. For others it is free to you to hit the like !
I was just looking into Brickworks, and frankly I really like goodman group too (but it's a tad expensive haha) Thanks for dropping by Shane, your support means a lot to me!
Mate this format that you are using in ur videos is really great 👍. I learn so much in the space of 10-15 mins
Glad you like them!
Love the way you make this so simple to understand. Thank you for creating this video.
I love these videos. You're quickly becoming one of my favourite UA-camrs. I've spent the last six years (until February this year) working in Beijing. If you hadn't mentioned that you're Chinese, I would never have guessed it. I was hoping you would have covered SCG, VCX, AVN and GPT as that's where subscribers are probably looking to invest and are probably wondering about the value in retail REITS given the current price levels. Although, I am very glad to hear about CLW. I've never heard of this REIT before and am very interested in doing some further research. Many thanks for the great tip. Have you thought about offering a way for subscribers to sponsor a video topic, like another UA-camr I follow does? If it's about an investment-related topic you're familiar with anyway, that could be an extra revenue stream. All the best, mate. Matthew
Hey Matthew, I am so glad you enjoyed it! So on the REITs you just mentioned I did look into it, but I think they deserve a separate video since for those it's more of a value investing opportunity. On the sponsorship idea, I am starting to hear my subscribers talk about it, so I might make that official as part of a perk on Patreon after I cross the 10k sub mark.
In the meantime, you dropping by and watching already means the world to me, so thank you!
Hi Matthew, I happened to do a video on SCG latest half year result. I would really hope to see some feedbacks. :)
Thank you Dave. just start creating positions on your recommended reits this week.
Hi David, I am loving your videos, keep making them hahaha I have been doing research on most reit companies in Australia and have decided I would like to invest in charter hall reit wale, I am wondering if instead of dividend payouts i can get paid in more shares, is this possible, if so how do I do it and which broker do you recommend?
Thanks, Max
You should check google dividend reinvestment plan or share purchase plan + charterhall REIT WALE and see if they offer that. You don't need a specific broker for that!
Another cons of investing in REIT is that the distribution doesn't come with franking credits, unlike dividends on shares. Therefore, while the nominal yield on REIT may look high, the effective yield once you take into account tax would be lower (potentially much lower if you are in the higher tax bracket).
By the way, why do you think a high payout ratio is a downside of investing in REIT? It is common for REIT to distribute most (if not all) of its earnings because REIT is simply a 'pass through' structure anyway. If anything, I would say a high payout ratio of REIT is a benefit for investors who are looking for income-oriented investments.
Ahh yes a good point on the franking credits, and on the high payout ratio as a downside just because comparing it to equities it has a high payout ratio. (for the beginner investors) And yes agreed, the point of a REIT is to have a high payout ratio
Great Video David! Looking forward to the day I can kick back and live of those sweet fully franked divends lol.
Or use those divs to go get a property? ;)
@@DavidQuan maybe 30!
Very well researched and explained video David. I had been eyeing off CLW myself for some time now and think will pull the trigger on it. CIP is also a great addition to an income-investor's portfolio. Unfortunately my biggest dog in my portfolio so far has been SCG. I have learned a valuable 5-figure lesson with that one (high debts) but will nevertheless continue holding it as I don't need to sell and SCG have the best-located shopping centers in Australia. Cheers once again
SCG pre-pandemic would be still pretty good, but damn this blackswan event threw a spanner in everyones works
Thanks David - I haven't given a lot of attention to REIT's so this was a great vid, looking forward to the Tech stock video
Coming soon and thanks for dropping by :)
Thx David.
CIP and CLW look good. But, GMG is donig better than them atm. What is your opinion?
I really like GMG, but it's a tad late imo, check out this playlist here: ua-cam.com/video/zZ8OSAbGYXM/v-deo.html (I talk about other REITs)
Hello David, great video again. What's your opinion on selecting an individual REIT like CLW vs VAP ETF?
I should really look into that, but I am super picky with the type of assets in a REIT, let me look into this some more
@@DavidQuan thanks David, absolute legend :)
I’ve got Vap in my smsf which I think holds the top 100 reits in Australia. I think long term it will be good but will likely be volatile due to covid. It’s only 5% of my super though so I’ll just let it ride long long term with the dividends reinvested.
Awesome mate, Glad you got the video out!
Hell yeaaaa :D Was it easy to follow along?
@@DavidQuan sure was! As for a relatively new invester it was. Looking forward to more!
Great video!! CQE and CMW is also very good! What do you think David?
I really like CQE, but don't know much about CMW. CQE is really good in normal conditions, but it seems that the pandemic is one of those blackswan events that actually hurts them (i didn't think that'll happen)
David Quan thanks for the answer! CQE has a lot of non profit organisations as tenants, that is really good + very high net tangible assets + a high WALE + high dividends.
CMW is not really a REIT it is a big property group mainly invested in the office sector. But still really high net tangible assets and high dividends + 45% of tenants are governments.
Keep going David!
Do you keep your position in bubs? The recent numbers were not really good, but I think the next quarter is going to be better again. They had really high production costs, but I think that came mainly through the production of the cow milk formula.. which came in the stores in June.. let’s see how cow milk formula is going in the next quarter 😉
Thanks for your all your videos so far.
If you can find some time, can you please look into why an ASX stock code ATH is trading under 5 cents when the NTA (Net Tangible Asset) is 127 cents ? This is highly unusual and it looks very cheap. In recent weeks ATH jumped to 41 cents (with very high volume) in one day only to settle back at 3.5 cents and then today jumped to around 5 cents. Similar thing happened with another stock with code DVL but DVL does not have a high NTA. So any time you can spend on ATH and DVL will be helpful. ATH is a biotech stock and not a pure tech stock so you may not cover it in your next few videos which I understand. Thank you
Love your videos David 👏🏻👏🏻
Brilliant Video! I like your checklist of choosing a good REIT.
I strongly believe that Real Estate is one of the best investments for beginners.
BTW, Now that Aussie Wealth Creation has turned Global, will you become the number 1 Aussie Investing UA-camr? 🇦🇺
Totally agree!
The number of subs means verylittle without the impact (this is not me trying to sound all motivational), so if I focus on the content and take you on a journey, I think the numbers will speak for it self right :)
Where can I apply and join reit in australia? Do you have a link or system platform to be joined
How do I create a Stake account without a social security number? Is there a way to invest into the SPDR® S&P® Global Dividend Aristocrats UCITS ETF (Dist) and WisdomTree Global Quality Dividend Growth UCITS ETF - USD from Australia?
Check with the STAKE team and see what you can do :)
@@DavidQuan thanks, all sorted
Thanks David! Love the outro by Otto as always, and looking forward to the tech stocks vid :)
Coming soon! And glad you like Otto hahahah 🦦
Hey David, loving your videos been subscribed to you since 1K subs and I’ve learnt a lot! I was just wondering what app you recommend is best for starting to build a portfolio on. I use Etoro for US stocks but wanted to get an app for AUS shares to help build some passive income. Thank you! 🙏
Whattttttt thank you man I appreciate:) for au stuff I use cmc, but I am trialing selfwealth at the moment!
All ur vids are so amazing and infomative!!! Thanks alot.
My pleasure! Was it hard to understand the content?
@@DavidQuan thats all good. HOPE u do more vids. All my support for u. Appreciate!!!
I liked your video, very interesting. Do you have any analysis among these company that who is the leader at logistic sector?
like a pure logistics company or a pure logistics REIT?
Great video! Definitely been looking more at compounding my shares. When you said 30% office assets, what does that mean?
Ahh I meant 30% of the Charter Hall Long WALE REIT portfolio is in office assets :)
This is a very informative and concise video David, great stuff! 😃
Glad you liked it!
Hey David, how to you get the debt to equity ratio? definately not by just googling it.
What's the difference in investing in CHC vs CLW?
Thanks .. great presentation as usual David. Couldn’t find the link for combined REITs which includes GMG.
Should be in the playlist, last video in 3 best dividend stocks 2020 video
ua-cam.com/video/Zg4LnVN751A/v-deo.html
Thank you David! keep it up your good work!
Heck yea I will! make them even better in the future for you!
@@DavidQuan Thanks mate! cheers!
Interesting video and easy to follow mate. During these unprecedented times it has affected the rental market and it will be interesting to see what the payout ratio is from here onwards and with possibility of a second wave.
im keeping an eye out on that
@@DavidQuan Me too mate, with Victoria in stage 4 lockdown now and the extension of stimulus package to continue, it's definitely something to monitor on the sidelines for the time being and how REIT continue through this.
Hi David: Which company doing Covid-19 vaccine?
more US/EU companies tbh, let me know what you find
do you like kathmandu? ;) any chance of doing a video on them?
LOL i am loving their jackets :)
Great video buddy 👍🏽
Would love to see your analysis on SCG! :)
A few ppl have requested SCG, so give me sometime to work on that one! :)
Great work David, that's as clear and concise an explanation as any of the experts. I think REITS can make up a solid, income producing core of a long term portfolio. They're not flashy they just keep on producing money for us.
It's not a very exciting asset, but hey if it gets the job done, why the heck not right
Thx David....good insight
Thanks for dropping by :)
Sorry how do you get the WALE data and NAT?
WALE is from presentations, NTA should be in the preso if not check marketindex
Was the content easy to follow?
@@DavidQuan thanks the content is clear to follow. The standard 0.6 debt equity ratio is your number right?
REITS will get even cheaper next year, I am guessing :) if the economy is not out of lockdown soon
Interesting observation....
Why?
Thanks David. Great video
Glad you enjoyed it, was it easy to understand?
Great video bro, keep it up!
Thanks dropping by that means a lot to me :) was the content easy to follow?
Yes, I especially liked the visuals you included of the companies that are tenants and the timestamps were also very helpful
Hahaha I’m so glad :)
Very good content
Hi David
Just curious if you can speak Chinese
BTW I love your video! I'm your new fan now
Yes I can :) but I take a lot longer now to process a sentence than before (guess my Chinese cpu is slowing down 😂)
@@DavidQuan maybe one day you can talking about stock with Chinese I think will have lots of people who understand Chinese will come to look your video.
LINDA CHIU I wish haha 😂
would you like to talk about SCG mate?
Ahh I see multiple have requested SCG, I might dig into it in another video :)
@@DavidQuan thanks for your video and not many is interested in au market sadly. do you know any good source of info for australian markets? sometimes i get confused what happened and caused some shares drop sharply
what aobur URW?
Not aware of them, let me dig in a bit
08:45 increase by CPI% by default. But it is not compulsory to disclosure though so can't tell. Very well present video bro. Also would love to see your feedback on my video of SCG 2020 half year result ;)
Thanks for dropping by :)
Thanks David. A couple of questions (I live in Singapore and familiar with REITs here, but understand that there would be differences in Australia).
1. Is there a minimum payout ratio required by Australian law?
2. Do Australian REITs use rights issues to raise capital for new acquisitions and if so, are the rights issues common?
On q1, I have not been able to find the right aussie law that mandates a minimum payout ratio for REITs, but it seems that generally speaking 70-90% payout is the range here. On q2, they can, but i think they know that debt is much cheaper source of capital granted the low interest environment!
@@DavidQuan Thanks David.
Yeah mate
Thanks for dropping by :) Was the content easy to follow?
If CLW drops to $4.65 I'm buying it.
Interesting, thanks for the comment :)
Very useful video plz more
Thank you, I will :)
I see you're wearing kathmandu jacket, can you talk about kmd
One day hahaha thanks for dropping by, was the content easy to follow?
@@DavidQuan yes great content, thanks for sharing
David Quan great content 👌🏼
Hi David, is it okay if you can look at ZOONO GROUP for me. I’m kind of new in share market, thanks mate!
Think that one is in my list haha thanks for dropping by, was the content easy to follow?
❤ 💰
If it is that good. Uncle Sam will be printing more free money and zapping over to buy it all. You'll all work for the printing presses.
I wouldnt put my money there. Bubble is gonna pop.
Do you think with hyperinflation around the corner- it’s a bad idea to get into now?
@@erinroxmyjox Keep your money. Better in precious metals.
Property is gonna crash.
It's too good to be true.
I'm guessing you're saving money on heating by wearing the jacket? #frugalliving
your a funny asian shaved head guy LOLOL