BC REITS
Saved by @AnmolNarula11

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.
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: the US has 194 listed REITs with a combined market cap of $1.3Trillion.
8/ Interestingly, Rents of all 3 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/ Surprise! we did a compilation of all the important factors for you ✌️

Let us know your insights in the comments section.
12/ 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.
13/ 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.
14/ 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
15/ 3 REITs are already listed & 3-4 lakh crore worth more REITs are incoming.

REITs allow developers to

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

See, A Win-Win situation all 🤝

End of Thread.
Feel Free to ask us all your questions on REITs.

More from JST Investments

JST Investments
JST Investments
@JstInvestments
Happiest Minds FY21 Annual Report Takeaways.

'Investing in next-generation digital technologies like Blockchain, Robotics & Drones, and VR/AR.'

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

A Thread 🧵👇

1/ Happiest Minds completes its 10 years of business: They have 13Kcrs in just a short span of time 🤯

Starts with the COVID 2.0 impact on the company: 8% of the team was tested +ve by 17th May, 26% of which were hospitalized.

Led to the terrible loss of 5 young men.


2/ Coming to the wins:

- Employee culture has been the biggest investment as per the chairman Mr. Ashok Soota
- Customer retention: One CFO has been a customer with the 3 companies he worked with ( Power of 💪relationships)
- Invested in all new technologies including next gen.


3/ Did you know? IP-led services (High margin & High operating leverage) account for 10% of their revenues.

Restructured the three business units (PES, DBS, IMSS) such that each caters to their specific high potential industries 🚀


4/ Talks about their Vision 2021-2031: How most businesses survive less than a half-lifetime of humans

This wouldn't be the case for Happiest minds as it is being 'designed for perpetuity': addressed succession risks

Guidance: 20% organic growth+ Lower PAT due to higher tax
HAPPYMIND , ALL , HAPPIEST MIND
JST Investments
JST Investments
@JstInvestments
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
SCREENERS
Advertisement
JST Investments
JST Investments
@JstInvestments
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
JST COMPANY ANALYSIS
JST Investments
JST Investments
@JstInvestments
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.
LEARNINGS
JST Investments
JST Investments
@JstInvestments
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.
ECONOMY

You May Also Like

foone
foone
@Foone
So there's a class of puzzles called "river crossing puzzles" which involve having to cross a river on a boat/bridge containing some set of individuals/items with restrictions on which ones can be on the boat/left on each shore, right?

and the most common subclass of these problems is the one where you have 3 items/animals to cross with.
This is alternatively called the "fox, goose, and bag of beans" or "wolf, goat, and cabbage" puzzle.

the idea is that your boat can only carry one item at a time, but if you leave the wolf/fox unattended with the goat/goose, the wolf/fox will eat the goat/goose.
and similarly, the goose/goat will eat the beans/cabbage if left alone

so you have to set up a set of actions that never leaves either side of the river in one of the lose-states.

the solution to this variant being:
1. take the goat/goose over
2. return empty
3. take the wolf/fox over
4. return with the goat/goose
5. take the cabbage/beans over
6. return empty
7. take the goat/goose over
GAMES
WAKE UP AUSTRALIA WAKE UP
WAKE UP AUSTRALIA WAKE...
@WakeAustralia
Facebook originally a CIA program called "LifeLog".
LifeLog, via DARPA, terminated on Feb 4th, 2004.
Facebook was launched on Feb 4th, 2004.
Many of the LifeLog team became execs at FB.
Zuckerberg is a figurehead.
CIA allowed Cambridge to help Trump win

https://t.co/enzOXDCogV


Pentagon Kills LifeLog
BUSINESS
Advertisement
Chuck Wendig
Chuck Wendig
@ChuckWendig
TRUMP: "I've decided to eat babies."

PEOPLE: "He can't eat babies, that's super illegal."

TRUMP, on TV, eating babies, not even cooking them first: "People are saying that I really am the best baby-eater, folks."

NYT: "Trump Vs. Babies: The Rhetoric On Both Sides Must Stop"

Jeff Flake tweets: "It is a sad day in America when this callous man can eat babies live on TV"

Jeff Flake, 10 seconds later, votes to help him install a series of 4,000 new judges that are very, very pro-babyphagia.

Judge Kavanaugh, found drunk in a Capitol Hill closet: "I LIKE BEER. OKAY? I LIKE BEER AND I LIKE BABIES AND THAT'S NOT SO WRONG. THAT'S RIGHT. I LIKE BABIES DIPPED IN BEER. I JUST DIP EM. IN THE BEER. THE BABIES. THE BABIES I EAT. OKAY? THAT'S AMERICA."

Mike Pence, wringing his hands about the baby-eating: "We must take care of our children. Our youngest must be protected on this troubling day."

Mike Pence then invites a Baby Chef to say a prayer.

Twitter Users: "It's a distraction technique! Trump eating babies is trying to DISTRACT YOU from ALL THE OTHER HORRORS, which are themselves distractions from the BABY-EATING. It's DISTRACTIONS ALL THE WAY DOWN."

Trump: *eats tons of babies at a rally*

*literal tons of babies*
POLITICS
Christina Warren
Christina Warren
@film_girl
A brief thread on Jovan Hutton Pulitzer, the crazy con man who is now claiming to have hacked into the Georgia voting machines in Fulton County. 90s kids and tech aficionados might remember Jovan as the inventor of the CueCat, the dumbest gadget of all time.

Also, for anyone who wants to claim that Jovan Hutton Pulitzer (not his given name, but one he changed legally after the CueCat debacle) invented QR Codes: he did not. Like that other right-wing crazy man who claimed to have invented email, Jovan didn’t invent QR Codes.

He did invent the CueCat, a product that somehow raised $185 million dollars for a tethered barcode scanner for magazines and newspapers, so you could get ads from your ads. As I said, the dumbest product of all time. Good backup barcode scanners after they were hacked, however

Oh, that’s another thing. When CueCat was a thing, its systems were hacked. I guess that’s what makes Jovan a security expert. His bankrupt company from 20 years ago was hacked and widely mocked. He’s a genius.

In recent years, Jovan pivoted to being a treasure hunter who was featured on and widely mocked on Curse of Oak Island, because the man is insane.
POLITICS
Vibhu Vashisth
Vibhu Vashisth
@VIBHU_Tweet
Santkumaras-The four adorable kids of the Universe.

The Kumaras r the four sages who roam the Universe as children from the Puranic texts of Hinduism named,Sanaka, Sanatana,Sanandana& Sanatkumara.They r described as the first mind-born creations &sons of the creator God Brahma.


Brahma,who had received the knowledge of Puranas from the Universal being(God Himself), imbibed this to his 4 Kumaras.
Sanat Kumaras then taught the Puranas to Narada.Narada transmitted it to Krishna Dwaipayana who in turn scripted them in monumental epic documents of 18 Puranas.

The Vishnu Purana is recorded in two parts,the Vishnu Purana & Naradiya Purana.The teachings of Sanaka of the Kumara brothers r contained in the Naradiya Purana which is also divided in two parts, the first part containing the teachings of Sanaka &second part,teachings of others.


Born from Brahma's mind,4 Kumars took lifelong vows of celibacy against their father's wishes.They r said to wander throughout materialistic &spiritualistic universe without any desire but with the aim to teach.All 4 brothers studied Vedas from their Childhood&travelled together.


The Bhagwata Purana lists the Kumaras among the 12 Mahajanas(great devotees or bhaktas) who although being eternally liberated souls from birth, still became attracted to the devotional service of Vishnu from their already enlightened state.
ALL