Harm Meijer

Real Estate Rules (eBook, ePUB)

The Investor's Guide to Picking Winners and Avoiding Losers in Listed Property

• Format: ePub

Produktbeschreibung

The incisive guide of how to effectively invest in real estate and REITs

In Real Estate Rules: The Investor's Guide to Picking Winners, Avoiding Losers in Listed Property, celebrated real estate investor Harm Meijer delivers a startlingly insightful and eye-opening roadmap to successful property investment. This book explains the golden rules of investing in European real estate companies, including Real Estate Investment Trusts (REITs). It's full of real-world examples and anecdotes drawn from the author's long and storied career in the industry.

Real Estate Rules contains:

• Robust tools for making informed investment decisions and staying clear of the "vicious downward spiral of doom"
• Understanding market cycles and mastering the art of acting contrarian during downturns to maximize your investment
• How macro drivers, central bank moves and government stimuli can be game changers for real estate markets
• Techniques for assessing the management's value creation and its alignment with shareholders
• Insights to ensure a solid capital structure and avoid leverage traps in downturns
• Advice on how to navigate the European stock markets with its unique challenges for Real Estate Investment Trusts
• Real-world case studies illustrating these principles in action, highlighting key lessons for investors

You'll also learn why acting on conviction, thorough research, strong relationships, and most importantly, trust are key to achieving lasting success.

Perfect for Real Estate Investment Trust investors, people interested in investing directly in individual properties, and other market participants, Real Estate Rules is also a must-read for anyone involved in the real estate industry looking for an insightful investor perspective on the sector.

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Produktdetails

• Verlag: John Wiley & Sons
• Seitenzahl: 310
• Erscheinungstermin: 10. Februar 2025
• Englisch
• ISBN-13: 9781394324866
• Artikelnr.: 73345421

Autorenporträt

HARM MEIJER is a Founding Partner of the real estate fund manager ICAMAP, with a strong track record in listed real estate. Before ICAMAP, he worked as a real estate analyst at JP Morgan, during which time he was ranked number one six times by Institutional Investor and five times by Extel. He has also held board memberships, contributed to EPRA, and is a frequent industry speaker.

Inhaltsangabe

Foreword xiii 
Preface xix 
Introduction - A Sector Not to Be Ignored 1 
Real Estate Is an Important Asset Class 1 
Two Undesirable Features of Real Estate 5 
Listed Real Estate Has Attractive Features 6 
But Listed Real Estate Is Not Always Preferred (Although It Should Be!) 8 
Listed Real Estate Is a Great Hunting Ground and Poised for Growth 9 
Book Organisation 11 
Notes 12 
The 20 Golden Rules of Real Estate 13 
Part I Real Estate 15 
Chapter 1 High Yield for a Reason 17 
How Is the Yield Exactly Calculated? Is It 'Dressed Up'? 18 
Is It a Good Asset? 19 
Chapter 2 Look for a Rent Compounding Machine with Minimum Capex 21 
Real Estate with Strong Supply/Demand Dynamics 22 
Ability to Capture Rental Growth Potential 29 
Minimum Capital Expenditure and Incentives 33 
Chapter 3 Scan for Value Add Potential 35 
Refurbishment, Extension and Alternative Use 35 
Cluster or Platform Creation 36 
Development 36 
Acquisitions and Disposals 37 
Services 37 
Chapter 4 Real Estate Is Cyclical 39 
Warning Signs 40 
Taking the Contrarian Side 44 
Note 45 
Chapter 5 Expected Returns Should Beat Cost of Capital 47 
Yield and Price per Square Metre 48 
Expected Return 48 
Beat the Cost of Capital 49 
Conservative Underwriting 51 
Act! 52 
Chapter 6 Central Bank and Government Stimuli (or Lack of) Can Be Game
Changers 55 
Central Banks Tend to Get Their Way 58 
Engineered Volatility, but ... 58 
Bail Out if 'Majority Is in Trouble' 59 
Stimulus or Restrictive Policy Will End One Day 59 
Arbitrage Opportunities Opening Up 59 
Part II Capital Structure 61 
Chapter 7 Prudent Use of Financial Leverage: Don't Get Caught Out by
Downturns 63 
Capital Markets Do Not Reward High Leverage, the Opposite! 64 
Loose or No Covenants 65 
Can Absorb a Value Decline of at Least 40% 65 
No Endless Leverage on Valuation Gains 66 
Increasingly Difficult to Degear above 50% LTV 67 
Note 69 
Chapter 8 Don't Assume That Financing Will Always Be Available 71 
Sufficient Cash Flow 72 
Spread in Maturities and Lenders 72 
Equity Should Be Raised When Conditions Are Favourable 72 
Alternative Financing 73 
Good Relationships with Debt Providers 73 
Rights Issues Value Destructive in Downturns 74 
Notes 78 
Part III Management 79 
Chapter 9 Continuous Value Creation Is Key 81 
Value Creation Leads to Superior Shareholder Value 81 
Optimising Total Returns from the Real Estate (ROIC) 83 
Optimising the Capital Structure (WACC) 84 
Cur Défense - An Example of Strong Value Creation 85 
M&A Can Add Value, But Frequently It Has Not 90 
Notes 97 
Chapter 10 Radical Action Needed in Case of Shareholder Value Destruction
99 
Change Management, Board and/or Governance 100 
Return of Capital 100 
Circle Property Trust: Liquidating Itself 101 
Chapter 11 Overconfidence Leads to Downfall 103 
Capital & Regional - The Remarkable Example of Overconfidence 104 
Chapter 12 Corporate Governance Should Be Top Nudge 107 
Risk Management 109 
Transparency 110 
Governance Dynamics 110 
Remuneration 111 
Compounding Goodwill 115 
Part IV Investing in Listed Real Estate 117 
Chapter 13 Scrutinise Property Investment Vehicles 119 
First Impressions Can Be Misleading 119 
Focus on Cash Flow 122 
Mosaic Theory 125 
Notes 126 
Chapter 14 Significant Upside Based on Multicriteria Valuations 127 
Historical Performance Analysis 127 
Six Basic Valuation Metrics 128 
Modelling 131 
Invest with Margin for Error 134 
Chapter 15 Focus on (Upcoming) Value Creators, Be Careful with Destroyers
137 
Introducing a Framework: Get on the Right Highway! 138 
(a) Firing on All Cylinders 139 
(b) Potentials 144 
(c) Stuck 144 
(d) Fighting for Survival 146 
The Accelerator Effect 147 
Note 150 
Chapter 16 Look for Maximum Pessimism and Maximum Optimism 151 
Chapter 17 Ensure Management, the Board and Other Shareholders Are Aligned
with Investment Objectives 155 
Management and Board Alignment 156 
Investigate the Shareholder Base 159 
Note 160 
Chapter 18 Be Aware of Self-Liquidating Companies 161 
Unsustainable Dividends 161 
Sustainable Dividend Policy 162 
intu Properties Plc - In Denial 163 
Chapter 19 When Trust Is Gone, There Is No Limit to Downside 177 
Spotting Red Flags 177 
The Downfall of SBB 178 
Adler Group: Everything That Possibly Could Go Wrong Went Wrong 181 
Note 192 
Chapter 20 Understand the Stock Market (Rules) 193 
Have a Conviction, Listen to the Models 193 
Be Proactive 194 
Analysts Not Good at Spotting 'Turning' Points 194 
When Management Teams Are Upset ... 194 
Every Day Is a New Day 195 
Have a Wish List 195 
The World Wants to Move Forward 196 
Can Management (and You!) Present a Convincing Business Case with Numbers
in One Minute? 196 
Kitchen Sinking and Conservative Guidance 196 
The Market Is Lazy and Does Not Reward Complex Companies and Long-Term
Developments 197 
Don't Be Too Eager Picking Up Stocks in a Downturn 197 
Watch Out for the Wallstreet Crowd! 197 
The Psychology of Numbers and Patterns 198 
Activism or Company Repositioning Takes Time 199 
Exploiting the Reversal Patterns for Similar Companies 199 
Benefit from Benchmark Investors 200 
Monitor Insider Trading and Shareholder Notifications 201 
Acknowledgements 203 
Appendix I: Some Terminology 207 
Appendix II: Six Basic Valuation Metrics Explained 211 
Appendix III: The Great Financial Crisis (GFC) 215 
2004 - Cheap Credit 217 
2005 - Securitisation 217 
2006 - Strong Valuation Growth 218 
2007 - Credit Crisis 219 
2008 - Lehman Collapse 219 
2009 - Balance Sheet Revival (Rights Issues) 220 
2010 - Economic Uncertainty 221 
2011 - Wait and See Attitude 222 
2012 - Slow Recovery 223 
About the Author 225 
Index 227