BC ECONOMY
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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🙂

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A Thread of our threads on the Business Analysis of specific companies 🧵👇

RT if this adds value to your investing journey.


1/ Chemcon: A specialty chemical company that is a globally dominant player in its molecules, most of which go into the Pharmaceutical industry & have a high criticality attached to


2/ Aegis Logistics: An oil & gas logistics company, with a stronghold on the LPG supply chain & riding the tailwinds of increased exports owning to weak domestic production. Their fight to grow much larger is on, short-term demand problems


3/ Varroc Engineering: An auto ancillary company that has propelled down under its own enterprising projects fueled by a ton of debt. Will the fortunes ever illuminate for this significant participant of the global automobile


4/ Jubilant Ingrevia: A specialty chemical company that has redefined backward integration as it begins from the basic chemicals to achieving complex vitamins & many more. Their fight to outgrow commoditized parts of the business goes
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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
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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.
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JST Investments
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Saregama India 🎼FY21 Annual Report Takeaways

'India's only entertainment company into Music, Films, Web Series, TV Serials and Retail'

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

A Thread 🧵👇

1/

India’s Largest Music IP - 130k+ Songs
Content IP rights of - 61 Films

Retail Business

Distribution network - 30k+
TV Serials - Content IP rights of 6k+ Hours of Television Serials


2/

To take pole position as a Pure play content company, capitalizing on the global boom in content consumption

IP CREATION OVER THE NEXT 3 YEARS -

20-25% Market Share in New Music
50 New Films and Web Series
1200-1500 Hours of new TV serials content

3/

Monetization of Existing IP

Through licensing to EVERY 3rd party digital and TV platform

Carvaan transitioning from being a Product with only a one-time margin to a Platform with upfront margin and recurring advertising and subscription revenue

4/

Building of New IP

Cementing leadership position with New film and non-film music acquisition across Hindi, Tamil, Bhojpuri, Punjabi, Gujarati, Telugu, and other regional languages.

Producing Thematic films & series, with Story as the only hero, targeted at youth.
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2021 is coming to an end.

Here's a list of 45 threads we wrote this year discussing multiple companies & Industries 👇

Do let us know of the topics you want the thread to be written on next
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Window dressing: : the act or an instance of making something appear deceptively attractive or favorable

Tens of thousands of of businesses shut down, economy in shambles, windows showing abandoned stores and restaurant are staring at you ugly when you are passing by. Now the same leftists responsible for this disaster think they found a solution to fix the ugliness they created.

This is the solution our Dem leaders have chosen to remedy the scars they created and the livelihoods they destroyed: apply some make-up. Make art installations in the windows of the abandoned stores and restaurants. Apply propaganda lipstick on the leftist pig and call it "art"

God forbid our leftist betters who run our cities would have thought of stopping this closure madness and helping people go back to work, re-opening stores and restaurants. That's not what they want. They want you to stay at home, afraid and dependent on their hand-outs.

In Socialist Romania during the years of the Ceausescu regime they did pretty much the same thing, only they didn't call it "art". The grocery stores and butcher shops were always empty, there was no food anywhere other that on the black market.
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What happens with the limited volumes of food aid that are sent to Tigray?

Testimonies on aid to the war-affected Tigray &

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I have read through the grooming report from the Home Office.

Here, in this thread, I will take you through the mathematical hoops they have jumped through in this deeply flawed analysis.

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tadzio_mueller
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Until 2050 we'll likely see "a #supercycle in investments in 'clean' energy infrastructure, 'clean' transportation & everything that's required for the '#green' transition."

There's so much bullshit in here, I'll unpack some of it in a

2/x

1st (cf. @MGSchmelzer): there is no reason to assume that a massive productivity- & hence production-boom will lead to reduced emissions, because it will increase production&growth, & it is those two variables that global greenhouse emissions track most closely. #Degrowth.

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Every time capitalism has made massive productivity gains (e.g. w/ the #steamengine; the taylorist #assemblyline; computers), that has led to a *radicalisation* of capitalism as a mass production system (as opposed to earlier versions, where luxury goods were for elites),...

4/x

So there's no reason believe that a new round of capitalist accumulation (#accumulationbydispossession / #primitiveaccumulation) - in this case: some kind of "#greencapitalism - will in any way positively impact emissions rates, but every reason to believe the opposite...

5/x

I would like to look into this, as it speaks to an often-overlooked issue: the relationship between different phases of capitalist development, such as imperialism, fordism, & post-fordism, connected to energy regimes (coal-based, oil-based, renewables-based capitalism)?
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For those who haven’t heard, we are witnessing a globally coordinated plan (conspiracy) to use fear and safety as cover for a #GreatReset of the world economy & society. This is a planned and internationally coordinated strategy by the most powerful global elites-the ruling class

The aim of the global ruling class is to refashion global capitalism into what we can call neo-feudalist technocratic bio-fascism-or ‘global fascism’ for short.

The aim is for remaining liberal democratic rights and freedoms that have been in place at least formally in the ‘west’ for the last few hundred years to be eroded and withdrawn.

There’s lots of different terminology and branding, for example: Great Reset, Fourth Industrial Revolution, Technocracy. The main aim of this plan is the concentration of power over capital, wealth, people and nature in the hands of a the very largest corporations and monopolies.

This plan for a new phase of global capitalism is enabled by national states and governments, international organisations & quangos (EU, UN, NATO, IMF, WTO, WHO, Gates, GAVI). With no clear lines between state and non-state actors, this is also a form of global corporatism.
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