If you bought BBOX exactly 5 years ago , then your cumulative return would be 2.75%.
The charges are 2% pa, most equity funds are between 0.5% and 1.25%
The net assets are apparently 5B but shares at 20% discount don't agree. HL doesn't show where or how the money is invested, direct property or other property companies or other REITs etc. Would need to go digging.
Thanks for linking to the BBOX page on HL.
I had forgotten that HL. offers basic data on shares.
HL. shows annual costs of 2.09%.
Sharepad shows annual costs of 1.6%.
Which is correct? I know not. But I understand that the way in which those costs are calculated is the subject of much discussion in the wider investment trust world.
Comparing the 5 year data on HL. with my own experience, one of my tranches of BBOX, purchased in Feb 2019 and held since then shows IRR = 7.6% pa.
The current yield is 4.8% pa and it is the dividends that make the difference.
I have seen various figures of around 2.9% pa for the average annual CPI over the last 10-15 years, so I am content with that level of return.
The assets of BBOX are listed, complete with descriptions, at:
www.tritaxbigbox.co.uk/portfolio/As I wrote last week, I can drive around the UK and eyeball the assets...
What I cannot see is how well BBOX manages its debt, especially as it is now taking over UKCM. We shall see.
When discussing REITs, one of the usual culprits mentioned is PHP which owns lots of medical facilities in the UK and Eire.
Last weekend's FT had an article on the CEO, Mr Hynam, who runs the company.
In the article, he claimed that almost 100% of the current debt is fixed for 7 years and that the inflation linked leases would kick in soon, improving profitability.
With a bit of luck, that will also hold true for BBOX. I do not hold PHP.
I also note that a new REIT is coming to market. It is claimed that the REIT wants to raise £500m which it will invest in assets trading at a discount.
As most REITs claim much the same thing, I am surprised to find yet another competitor entering the fray but, hey, what do I know?
Dr Google will help: Special Opportunities REIT
REITs aren't for everybody, especially with the tax issues but, all in all, the world of REITs looks as if it might survive the savaging of the last 2-3 years.
MW