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Adrian Harrington

The economy, bond yields and real estate: where to from here?

The gap between property yields and bond yields is known as the ‘risk premium’, the excess yield from investment in commercial property. The high yield spread signals limited downside to commercial property values.

Offices will live on in a post-COVID world

  The concept of 'activity-based working', where several people occupy one seat on a particular day, is gone. Businesses will need more space for the same number of people as an offset to the decline in demand.

Not all non-residential real estate performs the same

Retail assets, particularly those focused on discretionary shopping, will continue to underperform and industrial and logistics assets will be the winners for the foreseeable future.

Strong capital flows support non-residential real estate

In this 'lower for longer' rate environment, investors are recalibrating expectations of the required return from high-quality real estate, and foreigners are targetting Australia.

Sale and leasebacks benefit both companies and investors

Property funds are finding new assets in companies making better capital management decisions by selling their properties and leasing them back. It also gives investors strong long-term returns.

Long lease property funds: follow the income

Investors should not assume all property leases are the same, and long WALE funds have the advantages of tenant quality and term, plus look for the highly-desirable 'triple net leases'.

Latest Updates

Property

How cutting the CGT discount could help rebalance housing market

A more rational taxation system that supports home ownership but discourages asset speculation could provide greater financial support to first home buyers.

Investment strategies

The Ozempic moment for SaaS

Every investing cycle has its Ozempic moment, a narrative shock so compelling that the market briefly forgets that incumbents can and do adapt to transformative technology like AI.

Superannuation

Meg on SMSFs: Last word on Div 296 for a while

The best way to deal with the incoming Division 296 tax on superannuation is likely doing nothing. Earnings will be taxed regardless of where the money sits, so here are some important considerations.

Investment strategies

If people talk about a bubble, it’s unlikely to crash soon

It is almost impossible to identify a bubble in real time, and history shows they last far longer than we think, giving investors (perhaps misplaced) hope and short-sellers seemingly endless pain before the share price collapses.

Investment strategies

Seismic shifts that could drive private markets

Dealmaking appears to be on the mend, but investors could be well served to look through near-term trends toward six major themes that we think may drive private markets for years to come.

Latest from Morningstar

Corporations are winning the stock market. Here’s a new plan for everyone else

Retail investors have the worst trading record, according to a study of trading performance. Institutional investors weren't at the top either. Here are 6 ways to improve your odds.

Infrastructure

The bull case for Melbourne

A counterpoint to today’s prevailing narrative that Melbourne is the capital of a failing state defined by its strained public finances, COVID hangover and an opposition obsessed with undermining its own credibility.

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