Cor­ner­stone of my port­fo­lio

Finweek English Edition - - INVESTMENT - MARC ASH­TON *The au­thor owns shares in Vividend.

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.

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