After sorting the property signals from the Coronavirus noise we will keep it brief with just one gem in our property news this week. 7-13 March 2020
Black Friday for share markets, but property soldiers on
I do not intend to add to the noise around COVID-19. We are in crazy times when America’s State of Michigan declares a state of emergency the day after their first two “presumptive-positive” cases.
Our job at Newland Burling & Co and Provincia Property Fund is to keep our heads while others are losing theirs.
Especially in our role as value investors at Provincia Property Fund, we are excited at opportunities to buy great industrial properties at very attractive prices.
As Warren Buffett said, “Be fearful when others are greedy and greedy when others are fearful”.
We see market downturns as “SALE” signs. Fingers crossed!
Our overriding focus is to acquire low-risk properties at great prices for our conservative fund so that you can enjoy a reliable and growing passive income with the bonus of capital gains.
We’ve paid better than 6% cash returns on the prevailing share price ever since the fund was established in November 2017.
Foundation investors are now enjoying 8.1% pre-tax cash returns and have seen a 35% gain in the value of their shares.
Total returns in the two years from inception to October 2019 were 24.3% p.a. If you’d like a piece of that, go here »
Provincia chairman Olly Newland has some wise words…
“I’ve lived through 8 big crashes and recessions – the 1967 wool bust, the 1974 oil price shock, the second oil price shock of 1979, the 1987 share market crash, the 1991 recession, the 1997 Asian financial crisis and NZ drought, the 2001 dotcom crash, the 2008 GFC – and now this one, and I was deep in the property market in each one. In each case the causes were different but the end results were the same.
“Our tenants are very solid: food, electricity, storage, basic household requirements, water, etc.
“We have a wide diversity of properties and tenants, a basic conservative strategy, low borrowings, simple structure, no retail or offices, and all in prime positions.
“Keep calm and carry on.”
To find our more about Provincia Property Fund, to request an information sheet, or book a seat at our next investor information evening, go here »
If you prefer to avoid in-person meetings right now, we will soon have an online version of our investor information evenings. If you’d like to express an interest in receiving advance notice of that, fill in the form here »