RRT - Record Realty - Aussie Stock Forums

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  1. #1

    Join Date
    Aug 2005
    Blog Entries

    Post RRT - Record Realty

    Just wondering what you guys think of RRT.

    last year has doubled its assets, and paying 11 cent dividend. trading on PE ratio of 4.

    market cap $197 million...

  2. #2

    Default Re: RRT- 11 cent dividend

    Had a real quick look..

    They divested a lot of assets last FY so the PE is reflective of a much reduced EPS next year. 06 FY they made 33.8c per share. Comsec forecasts have them at 4.6 and 3.4c for 06/07 and 07/08. I don't think you will get more 11c dividends if that proves to be accurate assumptions :-)

  3. #3

    Default Re: RRT - Record Realty

    ABNs suggests 11c div in FY07 - in line with company guidance
    Refinancing is done every 6 months - eg they bought Germany property 3 mths ago and have refinanced to create 5% increase, or $80m which is then going towards USD223m invest in properties in US ... is that why price has faltered recently?

    i hold and 11c div for investment at 94c was very handy

    NAV: here we come
    A result with no major surprises with another 11dpu forecast for
    FY07 which requires at least two refinancing events. RRT remains a
    successful property leveraged finance play trading at a discount to
    its NAV backing.
    Key forecasts
    FY05A FY06A FY07F FY08F FY09F
    Total property income (A$m) 41.8 70.4 106.2 113.3 116.3
    Reported net profit (A$m) 3.56 47.6 39.6% 47.9 52.1
    Normalised net profit (A$m) 3.56 1.86 11.9% 12.3& 16.2
    Normalised EPS (c) 3.17 0.98 6.26 6.49& 8.51
    Normalised EPS growth (%) -72.1 -69.2 539.7 3.67 31.1
    Dividend per share (c) 12.0 11.0 11.0 11.0% 11.0
    Dividend yield (%) 11.1 10.2 10.2 10.2 10.2
    Normalised PE (x) 34.0 110.4 17.3 16.7 12.7
    Book value per share (c) 80.0 118.4 132.1 149.9 166.3
    Disc/(prem) to NTA (%) -35.0 8.79 18.2 27.9 35.1
    1. Pre-goodwill amortisation and exceptional items
    Source: Company data, ABN AMRO forecasts
    Accounting Standard: Local GAAP
    year to Jun, fully diluted

  4. #4

    Default Re: RRT - Record Realty

    Yeah after my premature post I went to their website and checked their forecasts also.

    Seems they will always have patchy earnings based on the fact they make their profit on refinancing and selling of properties rather that distribute the rental yield. They are spreading the EPS gain from last years sales over a couple of years in the form of the large dividend.

    What is does do, is makes them hard to gauge going forward. I agree thats a great yield on the present price. The longish terms of the leases and the calibre of tenant should provide reasonable insulation to a market or regional downturn. Their website actually is pretty good in getting their point across.

    Hmm, dammit now I'm going to have to do some research :-) You'd really need to know what assets are up for refinancing in the next 2-3 financial years.

  5. #5

    Default Re: RRT - Record Realty

    write up in latest smart investor:

    For the record, this managed property trust listed in December 2003 at $1 and Allco took over management in August 2005. Since then the trust has been restructured. Allco raised $56 million in its two-for-one rights issue in april and renegotiated its senior lending facility.

    Allcos facelift of RRT should be hit with investors, given the promise of stablising cash flows to deliver tegular dividend distribution of 11 cents.

    RRT promised shareholders it would also pay a minimum of 11 cents in 2007.

    In the year june 2006 the group posted net cash of $44.7 millio, altough operating cash flow was about 2.6 million.

    Meanwhile the company has started the financial year with a bang. more than doubling its assets under mangemen with a buying spree in july. it began with its first aquistion outside australi. 565 million dollar purchase of office buildings in germany. Then it confirmed the $238 million purchase of the ASX headquarters on bridge street Sydney. These deals and the promise of a distribution to shareholders, have helped the companys stock recover 12 % since hitting a low in january. Analysts at aBN amro believe there are more opportunities for more aquisitions.

    52 week high $1.11
    52 week low $.85
    Yield 11.5%

    MArket Cap $202.7 million

    Estimated PE ration 20.7

    I bought a few yesterday at 92 cents. It is listed on my margin loan with a 50 % lending ratio. The dividend is more than the interest....

    I will be going long on this.

    First Property stock err....

  6. #6

    Default Re: RRT - Record Realty

    With the company being published in the Smart Investor magazine for december, chance of some decent volumes.

  7. #7

    Default Re: RRT - Record Realty

    Anyone on em?

    They seem to have held 93 cents for the past few days.

    With the feeling of another 11 cent dividend next year, it looks good for an income stock growth.

    Dont really know a heap about them still.

  8. #8

    Default Re: RRT - Record Realty

    Sellers disappearing.

    Yield still attractive...

    Property trust floats with international exposure are set to be big in 2007 I was reading.

    Interesting to see how RRT travels.

    Only hold small number, mainly for the dividend being more than interest on my loan.

  9. #9

    Default Re: RRT - Record Realty

    For those looking for dividend yield...

    RRT have re-confirmed they intend to pay 11cents again this year - still dependent on 30June result though - which is not bad at current sp of 93 cents.

    However they have also announced 4 for 7 issue to holders at 80cents - so that means you're getting over 13% on the issued stock. Issue includes bonus option exercisable at $1.

    Last years div did not have imputation credits but was the tax-equivalent with mix of tax-free and discounted capital gain.

  10. #10

    Default Re: RRT - Record Realty

    Just thought i'd get some feed back on this one.

    RRT seems a relatively safe place to park some funds.

    12% dividend. I think numbers are stacking up well with the purchases they have made. Sydney ASX building is set to bring some profits.

    End of financial year... funny things happen. Not expecting anything out of the ordinary but I reckon most of the selling is done.


  11. #11

    Default Re: RRT - Record Realty

    Looks like we're the only two following this one Ken!

    RRT is highly leveraged, and seems reliant on revaluations / sales for profit, with rents barely covering interest payments... so risk is global property markets but they good spread across continents now and have long-term, reliable tennants (my favourite too!)

    I felt a lot more comfortable when Allco came on board and definately looking at picking some more of these up before the div announcement (in maybe early sept when annual final figures announced?)

    Looks like they've pushed higher today but low volume - i think whoever nabbed them at 83 got a bargain... with 11 cent div announcement these should go to $1 (which is still over 10&#37

  12. #12

    Default Re: RRT - Record Realty

    Its not really a stock for trading, so theres not much interest i guess.

    Bit like WCB, the cheese company. Not much hype. No one interested. People look for banks and big miners for blue chippers.

    I just reckon, if you can hang on to a stock like RRT for an extended period of time, you get yourself a really good income, that evens out the bumps and bruises when it gets tough...

    Just my thinking...

    Most people dont like to have money parked in yield stocks, why would you when theres been so much growth in the mining sector....

    I am into mining also, but as a safety measure for a slowing economy. I think RRT should be well positioned.

  13. #13

    Default Re: RRT - Record Realty

    Dividend hunters are waking up to RRT with possible ann of 11cent dividend in about 6 weeks.

    For players who want leverage RRTO (March08 at $1) may be an option (scuse the pun). With the 11cent div you'd think $1 on shares isn't out of the question forced up by players seeking a yield - in past they have gone to $1.10 - current buys of RRTO are still under 2cents... potential to push higher?

  14. #14

    Default Re: RRT - Record Realty

    Well you just never know who is holding the options....

    Theres always money to made with the options... it makes a stock more mystical in my opinion. Adds to the complex nature of the way certain stocks are traded.

    I am not suprised it closed on 93 cents today. That seems to be a very critical point in the history of the stock. Has been support before, so if we can get through 93 cents obviously the next barrier is $1.00. Getting through a $1.00 and really there is some blue sky...

    Property is running hot at the moment so who knows. Have we broken the sideways trend? I think its fair to say we have...

    Will be interesting to see where this stock is at in a couple of years....

    If RRT can hold its current dividend who knows.

    Your still looking at around 8% yield if the stock is $1.20 which is still great.... Would love a one off dividend with RRT like 50 cents, like PBD had... that would really sent the stock rocketing. Not sustainable but would get some interest.
    Attached Images

  15. #15

    Default Re: RRT - Record Realty

    Just the most boring stock on the market!

    Puts you to sleep but when the going gets tough, the old property trust holds firm!

    For the long term investors parking fees are 24.95 through your online broker.

    Cough cough...

    12% dividend coming...

    RRT rated grandpa stock of the year.

  16. #16

    Default Re: RRT - Record Realty

    Seems interesting- have these gone ex dividend yet and when is the dividend pay date? Also has it rebounded back after the exdiv date in the past, if you could fill me in id be greatly appreciative

  17. #17

    Default Re: RRT - Record Realty

    RRT LOOKS AN interesting prospect with a 15% yield on the stock now.

    For long term investors this could be a very good income stock at current prices.

    71 cents a share paying 11 cent dividend and it is trading well below its NTA value.

    I am no guru, but as far as I can see the numbers are stacking up. Even if the stock does drop. The lower price you buy, the better the dividend yield.

    Am I missing something?

  18. #18
    Mod: Call me Dendrobranchiata prawn_86's Avatar
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    May 2007
    Los Angeles
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    Default Re: RRT - Record Realty

    I cant remember where i heard it (sorry) Ken. But if my memory serves me then i think that RRT disposes of its assets in order to pay its dividends, because of its trust structure.

    So theoretically the SP should always fall lower if they do not make any new acquisitions.

    Let me know if your interested and i'll try and dig up that info

  19. #19

    Smile Re: RRT - Record Realty

    Hi folks,

    RRT ... only some brief details, right now !~!

    03122007 ... double bottom, after trending down,
    since mid-October 2004 .....

    07122007 ... minor and positive ... finances???

    21-31122007 ... Merry Christmas - expect VERY
    significant news here, as a positive spotlight
    is focused on RRT ... this should be BIIIGGGG,
    being right on the summer solstice and we are
    looking for a BIG move upwards !~!

    02012008 ... minor

    09012008 ... minor

    22012008 ... minor

    25012008 ... significant and positive ... finances?

    More later .....

    have a great day



  20. #20

    Default Re: RRT - Record Realty

    Thanks for the heads up I do know they dispose of assets, buy and selling property etc.

    I just find it a very interesting stock considering the stock is paying 15% yield.

    If the share price tracks lower then they may explain it, but if the NTA is over $1.00 then it appears RRT is just undervalued.

    My understanding was that they are moving into Germany.

    More research needs to be done, as it is a stock most people dont understand I feel.

    I for one will be doing this because at current prices its one of the stocks that says its a logical buy, but it could be to good to be true.

    15% dividend must carry some kind of risk you would think.

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