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Sustainability of dividends- Investment mistakes
By Sillyinvestor  •  March 1, 2016
Some are common sense mistakes, but here goes.   1) Not taking into account minority's interest. HPHT has Yantian that is not wholly owned. I did not discount that in my cash flow calculation.   2) Blind by occupancy rate. Sabana used to have all its tenant in triple or master leases. Hence, it's occupancy rate is 100%. It's tenants no. increased so I assumed occupancy rate will hold even when it become multi-tenanted. I was wrong. AReit has many multi-tenant leases too, it is not a problem per se, but it highlight the risk when such 100% occupancy leases are up for renewal. You won't know if there is a nasty surprise coming your way especially if that building form a significant part of revenue.   3) Underestimating the impact of currency. When vested in LMIR, I simply look at the footnote of the AR and conclude the impact of devaluation of ......
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By Sillyinvestor
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