The theme of REITs this year has been widening discounts. Equity investors reckon REITs are in for a tough time, while their managers ignore the noise and increase property values to exacerbate discounts to NTA.
It’s created the situation where Pitt’s 360 Capital could raid a HPI stake at about a 20 per cent premium to the prevailing share price, but still a 12 per cent or so discount to NTA.
The question is who’s vulnerable next? Investors are willing to sell at a discount, provided it’s a good enough premium to the security trading price, setting the scene for corporate activity.
Just when investors thought things could get no worse for Link Administration Holdings this year, its big-ticket client AustralianSuper has fired the starter’s gun on a contract review.
Kiwi utility Vector’s trying to bring its metering auction to a head, calling for bids by mid next week in an effort to have a signed deal by Christmas.