If you are looking for an investment opportunity that yields solid returns, you may want to consider Stanlib Fahari I-REIT. This investment offers investors the flexibility of buying into the stock at any time. You can earn a healthy yield and diversify your portfolio.
The Stanlib Fahari I-REIT’s dividend yield currently stands at 6.52%, which is below the yield of other high-income investments like government bonds. However, the dividend yield is relative to the underlying assets and stock market, so it can be used to determine if a given investment is undervalued or overvalued.
This trust owns income-generating real estate and operates through four segments – Retail, Office, and Industrial. The Industrial segment offers buildings such as warehouses. The Financial Assets segment contains cash and financial assets valued at fair market value.
As the Kenyan subsidiary of STANLIB, the Stanlib Fahari I-REIT is a vehicle for investing in real estate in the country. The company manages assets on behalf of a variety of clients and has a strong track record of innovation in the real estate sector. In fact, the firm was instrumental in establishing Income Real Estate Investment Trusts and Development Real Estate Investment Trusts in the country.
Value of underlying assets
The value of the underlying assets of Stanlib Fahari I-REIT reflects the performance of the investment. Its dividend yield is 6.52%, which is lower than the yield of government bonds or many other high-income investments. However, this yield is based on the underlying assets, not the value of the stock market. Therefore, you can use this yield as a guide when assessing the value of the investment and deciding whether it is worth investing in.
This Kenya-based company is one of the top asset managers in the region, and has a strong track record in managing assets. Its portfolio is composed of income-generating properties such as commercial, retail, and industrial properties. This allows the I-REIT to offer investors stable income streams and liquidity.
Potential for capital growth
STANLIB Fahari I-REIT is a real estate investment trust that manages and owns income-generating real estate. Its objective is to generate capital growth from these properties. The firm operates three business segments: commercial, residential, and retail. The retail segment generates the most revenue for the company.
In 2017, the REIT reported total returns of 8.4%, a decrease of 0.1 per cent from the previous year. However, the company has made prudent decisions with regard to the renewal of leases and the capital growth potential of these properties. It has also announced plans to add a 300-seat cinema in its Greenspan Mall.
Risks of investing in a Stanlib Fahari I-REIT
The Stanlib Fahari I-REIT is a real estate investment trust listed on the Nairobi Stock Exchange. Since it started trading in November 2015, it has reported total returns of 8.4% for 2017 and 8.8% for 2016. However, the company’s dividend yield is lower than the yield of other high-income investments. This is because the dividend yield is relative to the market value of the underlying assets. Thus, investors should consider the risks of investing in a Stanlib Fahari i-REIT.
As a real estate investment trust, Stanlib Fahari I-REIT is associated with a pan-African multi-specialty investment company called STANLIB. This company has offices in 10 countries across Africa. The company will invest at least 75 per cent of the funds raised in property.