Cornerstone of my portfolio
SINCE VIVIDEND* listed in late 2010, I have been slowly adding the shares to my portfolio and it has now become one of my bigger holdings. Apart from my PropTrax exchangetraded fund exposure, this is my biggest listed exposure to the property sector and I’m comfortable with continuing to grow this position.
Element Investment Managers pointed out in its most recent newsletter that Vividend has the highest dividend yield in the sector at the moment and it points out that the group had an initial target yield of 11% – significantly higher than the rest of the sector.
Interesting stats include 73% of the portfolio are held by “A-grade” tenants with 44% of them locked in for three years or more and an 86% renewal rate. The group also has a small, niche portfolio – just 19 properties – which makes it easier to manage.
Aspects holding the group back are limited analyst coverage and a relatively small market capitalisation.