BC ECONOMY
Saved by @Alex1Powell

A product which provides a fixed income which is better than FD & an upside like equity.

Should you invest in Real Estate Investment Trusts (REITs)?
A Thread 🧵👇

 1/ REITs are a vehicle to invest in income-producing real estate properties managed by professionals.
2/ In India, we have REITs primarily focused on commercial real estate properties having 7-9% rental yields.

In listed REITs, Most of the completed properties are pre-leased to big companies.

Why no residential? As yields of 1-3% make them unattractive to investors.
3/ How do you get the benefit of such yield?

REITs have to distribute at least 90% of their taxable income to their shareholders.

Both listed REITs trade at 6-7% dividend yield (which is also tax-free)
4/ Moreover, 80% of their total value must come from completed & income-generating properties + it must avoid speculative land acquisitions.

What about debt then? There's a restriction there too.
Not more than 49% of the total equity.
5/ Looking interesting, right?

REITs are traded on the exchange (like stocks). Yes, Instant liquidity in a very illiquid product (Bulky Commercial Real Estate)

An investor can take part by buying 200 units at a time (60-70k rupees)
6/ let’s talk tax.

Under the current structure, Dividends remain tax-free (6-7% yields vs pre-tax FD yield of 5%)

On capital gains, while selling your units:

STCG of 15% on gains (if sold in less than 3 years)
LTCG of 10% on gains (if sold after 3 years)
7/ what makes us optimistic?

US REITs have 5 decades of history behind them & they have continued to outperform the broader equity markets

Interesting fact: US has 194 listed REITs with a combined market cap of $1.3Trillion
8/ Interestingly, Rents of both the listed REITs are at a 30-40% discount compared to the current market rents.

This leaves an upside potential once contracts expire.

Moreover, REITs have contractual escalations of 10-15% every 3-5 years.
9/ This is getting a bit complex, Let's talk about an alternative?

Directly buying RE? Get ready for 👇

- Huge Ticket Size (vs limited capital)
- Hassle of managing operational cost
- No valid data source
- Illiquid investment with high transaction costs
10/ Convinced already, things that must be tracked:

- Committed Occupancy & collections efficiency (higher the better)
- Weighted Average Lease Expiry (WALE)
- Sector Concentration (lesser the better) & Quality of tenants
- Healthy Balance Sheet
- Upcoming portfolio
11/ Will WFH kill the Commercial Real Estate business?

No (in the context of India)

- Rents are a fraction of global rents
- Indian Outsourcing is a big opportunity given the resilience & performance in COVID
- Young Population needs direction via physical interactions.
12/ Due to the hits from Demonetisation, RERA, GST, IL&FS crisis & COVID-19

Commercial RE supply is hit, especially for Single Building Projects, Speculative construction, Strata Title assets

Most are facing a cash crunch

Great for future rent scenario, if demand increases
13/ Risks with Investing in REITs

- Slowdown in Commercial RE (follow vacancies)
- Oversupply: Renegotiation at lower rates
- Concentration risks (tenant & location wise)
- Difference b/w REIT yield & FD rate
- Broader stock market movements will have an impact on unit price
14/ 2 REITs are already listed & 3-4 lakh crore worth more REITs could be listed.

REITs allow developers to

- Raise money & deleverage
- Provide liquidity to shareholders
- Increases market value due to increased transparency

As an investor, you are ready🙂

More from JST Investments

JST Investments
JST Investments
@JstInvestments
Real Estate Investment Trusts (REITs) Simplified.

A product that provides a fixed income that is better than FD +an upside like equity.

A Thread 🧵👇

1/ REITs are a vehicle to invest in income-producing real estate properties, managed by professionals.


2/ In India, we have REITs primarily focused on commercial real estate properties having 7-9% rental yields.

In listed REITs, Most of the completed properties are pre-leased to big companies.

Why no residential? As yields of 1-3% make them unattractive to investors.

3/ How do you get the benefit of such yield?

REITs have to distribute at least 90% of their taxable income to their shareholders.

All 3 listed REITs trade at 6-7% dividend yield (which is also tax-free)

4/ Moreover, 80% of REITs total value must come from completed & income-generating properties + it must avoid speculative land acquisitions.

What about debt then? There's a restriction there too.
Not more than 49% of the total equity.
REITS , ALL , REIT
JST Investments
JST Investments
@JstInvestments
Rallis India Annual Report Takeaways.

'Launched and promoted 2 botanical biopesticides'

Hit the 'retweet' & help us educate more investors.

A Thread 🧵👇

1/ From the desk of Mr. Bhaskar Bhat (chairman) ✒️

- Talks about how the reforms in the 🇮🇳's sector over the long run: will make it more organized
- Record production of foodgrains this year: 303 million tonnes
- Focus is to increase R&D infra & manufacturing capacities.


2/ Crop care business (83% of rev)

- 10% YoY growth in domestic & 3% growth in exports (incl. CDMO)
- Launched 4 new products in Crop Protection (3 in-house formulations) & 6 new products in Crop Nutrition (2 in Biopesticides)
- Enhanced dealer network by 5%.


3/ 🇮🇳 Crop care

- Formulations was up 14%
- Channel network of 3879 distributors & 48K dealers

Exports Crop care

- Acquired 9 registrations
- Global leadership in most active ingredients
- Adding 2 new manufacturing plants in Dahej & scale-up facilities for CDMO biz


4/ Seeds business (17% of rev)

- 11% growth in rev
- Challenging business environment
- Launched 4 new products
- Sharpening focus on segments having successful products
- Plans to set up new retailer loyalty programmes, combined with a hybrid demand generation model.
RALLIS
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JST Investments
JST Investments
@JstInvestments
Sterlite Tech: Stable (Low Base)

🗼Rev up 49% YoY, 18% EBITDA margin, Pat of 116cr (vs 6cr)
🗼 Order book at 11.2Kcr
🗼 Successful field trials for programmable FTTx
🗼 New R&D facility in 🇬🇧 & Optical Fiber cable facility in 🇺🇸 committed to

#Q1withJST #Telecom


Acquisition of Clearcomm: a 🇬🇧 based network integration co.

🗼 At less than 0.8 times Price/Sales, growth of 25% cagr in the last 3yrs
🗼 Capitalise the fiberization wave in 🇬🇧
🗼Has customer relationships with tier 1 telcos.
STERLITE TECH
JST Investments
JST Investments
@JstInvestments
HDFC AMC FY21 Annual Report Takeaways

'We are the fiduciary to our customers – their interests clearly supersede'

Hit the 'retweet' & help us educate more investors

A thread 🧵👇

1/ What has helped HDFC AMC to grow this large?

The Trust associated with the HDFC brand.

A one-stop shop for individuals, families, corporates, and institutions when it comes to their investments.

The most profitable Mutual Fund.


2/ Promoters continue to own 73.9% in the company:

52.7% by HDFC Ltd & 21.2% by Standard Life investments.


3/ Numbers that matter

Rev up 3%
76% EBITDA margin
Pat up 5%
AUM up 24% to 3.95 Cr (43% Equity, 39% Debt, 16% Liquid) | PMS & big accounts at 9.7K Cr
53 lakh investors
1254 employees
Digital transactions: 82% of total
13.7% market share in MAAUM & 12.6% in total AUM


4/ Product Portfolio

In Equity, will increase the diversity in their investment style & approach: have faced the brunt of underperformance in the past | 24 schemes

Debt schemes were able to tide through the tough phase of defaults by a large NBFC & HFC, COVID-19 | 68 schemes
HDFCLIFE
JST Investments
JST Investments
@JstInvestments
Laurus Labs FY21 Annual Report Takeaways 🔬

'Capex plans are already under way to increase capacity by 1.8x by 2022'

Hit the 'retweet' & help us educate more investors.

A Thread 🧵👇

1/ About the company:

Leadership position in generic APIs with a major focus on Antiretroviral drugs, Hepatitis C & Oncology drugs

FDF: Moved up the value chain in formulations

Synthesis (CDMO): KSMs, Intermediates & APIs to pharma innovators.

Bio: Recombinant products


2/ Strengths of the business:

Robust R&D & Process chemistry skills
Compliance that meets the most stringent regulatory expectations (USFDA, etc)
Long-standing relationships | Top 10 global pharma cos. catered

750+ scientists (R&D) | 61 DMFs | 27 ANDAs | 150 patents (292 filed)


3/ APIs: 54% of rev

- Leaders in various high-value & high-volume APIs.
- 4 high potent manufacturing facilities: 4186 KL, increasing capacity by 24% (Strong demand)
- ARV APIs were up 70% | Onco APIs up 25% | Other APIs up 56% (higher contract manufacturing orders from 🇪🇺)


4/ Formulations: 35% of rev

- Backwardly integrated: in house APIs
- Sales to LMIC, 🇺🇸 & 🇪🇺
- 27 ANDA filled: 9 approved+ 8 tentative.
- Capacity of 5 Billion units/yr, Increasing capacity by 100%
- Sales up 102% (growth across markets)
- Launched TLE 400 in the LMIC market
LAURUSLABS

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My friend @itsafronomics wanted to know the breakdown of student debt by income, so I pulled data from the SCF.

Student debt is more concentrated amongst high earners, but disproportionately amongst Black borrowers. The plot below plots the average within Income Quartiles.
1/n


But those are the averages. What's the share that's above 10k? (This is the Biden current cutoff for debt forgiveness, so a useful benchmark).

For comparison, 20% of white Americans have student debt, and 31% of Black Americans.


Let's contrast that with say, above 20k. I was surprised at how high the share remains.


When we get to 50k of student debt, or more, we see it's only about 5% of the US, and around 8% of Black Americans. Strikingly, it's a huge share of high income Black Americans (this is a known fact in the education literature, I believe).


So what does this look like put together? Overall, we see a higher share of Americans with debt above 10k, and 20k. We would cover a decent amount with 10k, but miss Black Americans especially.
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hegelian vs predator \U0001f42c
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🚨🚨 THREAD TIME 🚨🚨

let's talk about the differences between income, wealth, and class

tl;dr: income is earned, wealth is bought, and class is inherited

also hi friends, while on the topic of income, this work is my only source of it! times are tough and folks are really struggling, but if you have a couple extra bucks please consider sending a tip my way

💰 venmo rachel-kahn-5
💵 cashapp

INCOME is the amount of money a person makes from labor and investments

so if you work for 2,000 hours and are paid $40,000 in a year, that's income

OR if you have a $1,000,000 stock portfolio with a 5% return rate and cash out $40,000 of it, that's income too (fucked, right?)

WEALTH is the amount of capital you own

that could be owning a house and land worth $150,000

or owning a small business with $150,000 in assets

or owning $150,000 worth of stocks

wealth is the investments that are themselves accruing value

CLASS is about what you stand to inherit

in the united states we use a lot of weird doublespeak to avoid talking about the proletariat, the petit bourgeoisie, and the bourgeoisie directly

proletariat ~ working class
petit bourgeoisie ~ middle class
bourgeoisie ~ upper class
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1/x The market continues to try & shake out weak hands from overextended positioning by both HF & Retail...After a strong Vanna run up overnight, as expected, retail exuberance exploded on the open in the form of retail call buying, this fragility, paired w/a)Mean reverting flows


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3/x flows, & point to continued likely index RVol an IVol pinning...Historically, the week of quarterly OpEx markets are notoriously volatile intraday, but also mean reverting like we saw today. I think it is fair to expect continued IVol compression & more of the same underlying

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1) Get used to the following term: “budget reconciliation.”

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2) But an understanding of the process may shed light on the policy – and the political realities of Capitol Hill.

President Biden and Democrats in Congress have long memories about how Republicans responded to big legislative initiatives in 2009.

3) The country reeled after the financial crisis. But many Republicans made a pact to reject a stimulus package to help boost the economy. Later that year and in early 2010, Republicans also voted nearly in lockstep against Obamacare.

4) Right or wrong, Democrats felt they waited for Republicans to help out. But were met with blockades and political opposition at every turn. Democrats are wary that they can count on GOP support this year. They still feel the sting of 12 years ago.

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American collapse is gonna be a horror show because we are an economic parasite on the world, and collapse will be the host cutting off our proboscis. We cannot self-sustain.

Robert Reich once bragged that our economy was transforming into one where 20% of us would be well compensated "symbolic analysts" and everyone else would be servants to this class.

This is echoed in Primary Colors where Fake Clinton tells the shipbuilder union to get ready to go back to school because making things is over. We are all "symbolic analysts" now.

That's only possible because the rest of the world makes stuff for us to consume. On a net basis the world makes while we take. Capitalism is the international legal system which ensures this will happen through the enforcement of investor and property rights.

This is the "system of international rules" that Biden has warned China must be obeyed. Or else.

The world makes, we take (and pay in USD).
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1 - open trading view in your browser and select stock scanner in left corner down side .

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4. Then manually select the stocks which are going to give all time high BO or 52 high BO or already given.

5. U can also select those stocks which are going to give range breakout or already given range BO

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