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Dividends rise at Local Shopping Reit

Local Shopping Reit demonstrated the pernicious effect of high gearing when property prices are falling. The company’s portfolio of high-yielding corner shops only fell 2.8 per cent in value over the half, but that had a big impact on book value because the company operates at a gross loan-to-value ratio of 72 per cent.

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By Stephen Wilmot,
24 May 2012

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