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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