Multi Currency Real Estate Value

by | Feb 26, 2014 | Archives

Multi Currency real estate is everywhere,  but like the US stock market, the values in many real estate  markets have deteriorated.   For example Land Securities Group Plc, a British REIT, Ecuador real estate and Lake County Florida  real estate were recommendations and reviewed at our October  2010 and  February 2011 International Investing seminars and in our November 2010 “Running Risk – How to Profit in Risky Times” report.

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Click on chart from Finance.yahoo.com to enlarge.

Profits have been excellent, if you followed this advice.   Now is the time to set an exit price.

Eric Roseman who runs ENR Asset Managers, one of the overseas managers who looks after my portfolios, wrote this in the fact sheet of the ENR Viking Medium Risk Portfolio.

The only alternative investment we hold is British Land plc.

Based in the United Kingdom, British Land plc owns and manages commercial properties worth more than $28 billion dollars, mostly in the London area. The REIT has been very profitable since the low in the UK real estate market. We purchased the REIT at an average price of £5.56 or an unrealized gain thus far of 18% in dollars, not including dividends. The London property market is on fire since 2012 and earnings continue to beat consensus. To be sure, London is overheating and we’ve placed a target to take profits over the short-term.

The IRA eligible Viking Medium Risk Portfolio holds around 20 multi currency shares and has risen 14.24% in 2013.

The ENR Viking Medium Risk Portfolio is a growth-based investment portfolio typically over-weighted common stocks, foreign currencies and bonds. The portfolio seeks capital growth mainly from a diversified portfolio of large-cap global equities, mostly investment-grade bonds and foreign currencies. The strategy may also invest in commodities, publicly-traded real estate securities and other alternative investments.

The five largest holdings in the portfolio at year end were Wisdom Tree Japan hedged fun, Nestle, Vodafone plc, SAP AG and British Land plc  The portfolio was approximately 60% in equities, 21% in bonds and the balance in alternatives and cash.

This portfolio is one easy way to diversify globally through two of the safest banking countries in the world, Canada and Denmark.   ENR manages the portfolio from Canada but all funds and investments remain in Denmark with Jyske Bank, Denmark’s second largest bank.

You can get more information about the  ENR Viking Portfolios from Thomas Fischer at Thomas@enrasset.com

Join Merri and me with Eric Roseman, Thomas Fischer and more at our next multi currency investing seminar which will be conducted in Montreal, Canada.

montreal

Join us for the leaf change and an international investing seminar in Montreal.

quebec city

After Montreal we’ll  have an optional field trip and ride Rail Canada to Quebec City and spend the night at the Chateau Frontenac where we’ll talk about global economics, self publishing, super thinking or whatever.

Get full details of the Montreal & Quebec course here

What’s Next?

We are always looking for breakouts based on good multi currency value.  Right now we are holding an extra high percentage of Australian dollars.

finance.yahoo chart

Click on www.finance.yahoo chart to enlarge.

We continually search for a weak currency that has strong fundamentals.  Right now one of the currencies that has every reason to strengthen versus the greenback is the Australian dollar.   Yet in the last year it has fallen versus the buck over 12%.  So I am investing in Australian investments.

My favorite Australian share is TFS Corp.

TFS is the only public traded compnay that grows harvests and process sandalwood, a rare endangered tree.

An analyst who has visited the plantation issued a report on the shares of TFS Corp in 2013 and said that the acceleration of commercial harvest proceeds offers a substantial uplift in earnings to + $400m a year (in ten years time) versus the current $51.8m.  The analyst believes at some time in the future this will inevitably drive robust share price performance.

The analyst estimated that TFC will generate over $2bn solely from the sale of its owned trees over the coming fifteen years due to the ‘embedded value’ of its 5,900 acres of sandalwood plantation.

The analyst also stated that over the next decade  TFC could be generating sustainable income of $400m a year which could generate earnings per share of  over 80 cents  which if applied to a P/E ratio of  ~13x (a +25% discount to the current Australian stock market aggregate) implies a potential ~$10 share price.

Most US or Canadian brokers who can buy Australian shares for their clients should be able to purchase TFS corp. shares.  Readers who use the ENR advisory service to Jyske Bank via Canada can purchase them from ENR.

Learn More about Sandalwood Investing

You can research this business on your own (the company is called TFS Corp. and it is listed on the Australian Stock Exchange) or to save you endless hours and numerous calls to Australia you can order the report at Amazon.com.   The report will retail for $9.99, but right now in its introductory stage it is $2.99.

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Sandalwood Investing Report

There is always some good value in real estate, but the exceptional value that the 2009 recession created has eroded.  This is the time to consider setting an exit strategy if your goal has been short term profit.

Gary

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