Since the beginning of the fourth quarter, I increased my allocation to Italian REIFs as follows:

- Bought a 1.1% portfolio position in Amundi Re Italia at EUR 720 per unit;
- Bought a 0.3% position in Immobilium 2001 at EUR 1,500 per unit;
- Added a 2.1% position to my existing investment in Unicredito Immobiliare Uno at EUR 820 per unit.

This brings the total weight of Italian REIFs in my portfolio to 8.4%. The following table provides an overview for each fund (click on table to enlarge):

Notes to the table:

1) Cumulative write down as a percentage of total historic costs (based on current real estate portfolio).

2) Cash available plus short term investments and current assets less current liabilities as a percentage of current market cap plus debt.

3) Expected 2017 free cash to unit holders (after all cash costs).

4) Total annual gross rent as a percentage of current total real estate portfolio appraisal value (including vacant space and excluding developments / refurbishments).

5) Weighted average lease term as of YE 2017, best estimate given that disclosure differs by asset manager.

6) As of 6/30/2017, based on total leaseable area.

7) From a location perspective; note that other assets in the portfolio might have better characteristics in terms of leasing or asset liquidity.

8) Assumptions: liquidation at current NAV. In the case of Europa Immobiliare this scenario also includes a positive outcome from two legal claims.

9) Assumptions: liquidation of property portfolio at 60% of current appraisal values except for the best asset. Best asset to be sold at current appraisal value.

10) Assumption: liquidation of total property portfolio at 30% of current appraisal value.

11) Equal weighting of each scenario.

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I see 2 large downward price gap for QF Unicredit Immobiliare Uno on 16/Mar/2015 and again on 16/May/2017. wold you know what those events were ?

Do you read Italian ? I found the Torre web site (http://www.torresgr.com/it/uiu_comunicatistampa.asp#) …but it’s all in Italian! However, the Immobiliem 2001 fund has all information here (in English); http://www.investiresgr.it/en/fondo/scheda/11/fondoimmobilium2001

I’m an investor in Unicredit’s shares since last year based on the NPL reduction story which the CEO Jean Pierre Mustier seem to be resolving very well. I would be interested to buy the REIFs once I understand the opportunity.

Do you buy these funds with a view o holding to maturity ? What does WALT abbreviate ?

Wimal

The price decrease results from distributions. WALT abbreviates weighted average lease term. I expect to hold them until maturity.

Cheers

Ben

Thank you for the clarifications. Did you to each fund’s data to locate the NAV ?

I’m trying to work out how reliable the ‘expected liquidation date’ is.

If you could own only one of these 5 REIFs and you were only looking for risk adjusted capital gains, not dividend income, which fund would it be ?

I am afraid this is something you got to find out for yourself 😉

I own a nice basket of these REIFs as well, of course with a bit of overlap. But perhaps an interesting question to invert a bit, what are the worst ones are. What do you think?

I guess Risparmio Immobiliare Uno Energia that is trading at a premium to NAV must be a good contender? Or perhaps Mediolanum RE Classe A/B due to liquidation date in 2021?

That really depends. I think all of these funds can be good investments at some point of the liquidation process. It also depends on turnover given that UIU’s trading volume is roughly ten times larger than for Immobilium 2001.