Property Shares - fill your boots!

I've recently written about the attractions of some commercial property shares.

The latest rout on the markets has also pushed the values of property shares lower. In my view it takes them from what was good value; into the territory of a screaming buy.

I've recently discouvered Bloomberg TV on my Virgin Box. After watching this 24 hr financial TV station I've concluded that it should be renamed "Headless Chicken TV" on account of the confusion and lack of perspective the various expert commentators seem to have.

One good thing about being a landlord is that your time horizon is measured in years, decades even rather than minutes. When I first started buying property, I never expected to see any return for at least the first 5 years.

Going back to the topic of commercial property shares. I can now buy shares in offshore property trusts paying over 10% dividend yields and trading at discounts to net asset values of over 25% with the companies being also relatively lowly geared. Five years ago, financial advisors were eulogising about the prospects of these types of companies that were then paying half the dividends and trading at a premium to underlying assets.

Now nobody wants to know. I'm buying using a CFD which potentially gives me a 20% income into the bargain.

If you like a bit of risk and don't need the cash tomorrow. I think you could do worse than fill your boots with a few property shares.

The ones I'm buying are:

Picton Property Income - price 39.75p NAV 60p Discount to NAV 32% YIELD 10%
Public Service Properties - price 55p NAV 118 Discount to NAV 54% YIELD 11%
Mckay Securities - price 116p NAV 197 Discount to NAV 42% YIELD 7%

Any tips - let me know or should I stick to buy-to-lets? Post your comments below

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