AIMS AMP Capital Industrial REIT: Interview with CEO.

This was an interview session with Nicholas McGrath, CEO of AIMS AMP Capital Industrial REIT's management, on CNA late last year:



I like the explanation why the REIT took on a slightly higher cost of debt with its MTNs as compared to the secured bank loans which it retired. This is somewhere 2m 40s into the clip.

If my hearing serves me well, the advantages are three:

1. Broaden and diversify funding sources with dozens of debt capital market investors.

2. Able to borrow on an unsecured basis.

3. Increased the debt tenor of the REIT with 4 different maturity dates over the next 4 to 5 years.

It sounds to me like the REIT is paying a bit more on borrowings for a higher level of funding flexibility in both source and tenor. This could be a pre-emptive move against the almost certain increase in bank borrowing cost that would accompany a credit tightening in the USA if unemployment level drops to 6.5% by 2015.

Related posts:
1. AIMS AMP Capital Industrial REIT: 4.35% Fixed Rate Notes.
2. AIMS AMP Capital Industrial REIT: 3Q FY2013 DPU 2.58c.

Little Book of Value Investing.

For anyone who wants to learn about value investing, I discovered an easy to read book.

The message I got is that value investing is easy enough but most people do not have the patience for it.

"Patience is sometimes the hardest part of using the value approach. When I find a stock that sells for 50 per cent of what I have determined it is worth, my job is basically done. Now it is up to the stock. It may move up toward its real worth today, next week, or next year. It may trade sideways for five years and then quadruple in price. There is simply no way to know when a particular stock will appreciate, or if, in fact, it will."

Of course, there are many ways to make money from the stock market and value investing is probably one of the best known, if not the most popular.

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"Buying stocks that have fallen in price and yet still offer a margin of safety has resulted in successful investments."

I enjoyed the book which I feel is a well written primer on the subject of value investing. It is also inexpensive which makes it a value for money read as well.

Related post:
Warren Buffet: The world's greatest money maker.