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Industry Discussions / Real Estate Inv. Trusts: REITs


Subject:  Re: SCPZF: Not all that glitters... Date:  2/10/2013  8:34 PM
Author:  aleax Number:  73665 of 83858

Sprott announced an eye-popping dividend a few weeks back, and it got mentioned on this board as a farmland play. See this link and read the comments as well as the article.

Alas, it's gone behind a paywall now. Wonder if a freely readable copy exists anywhere. I did read the article back when it was free, but don't recall every detail (it was a long and extremely detailed analysis).

Roughly 25% of Sprott is gold bullion, 25% agriculture (both farms and fertilizer producers), 50% energy.

One can read the financial statement as of end of Sep'12 at -- and yes, there's a recorded loss, though it's a non-cash loss due to large impairments in investments WestFire and Guide (before they merged to form "Long Run Exploration", which does development and exploration of oil and gas mostly in Alberta).

One Earth Farms actually leases much of its land (from Canada's "First Nations") -- kind of the reverse of a farmland REIT!-)

I bought a very small allocation, but I don't think this is widows and orphans material.

Yep, it's quite an ebullient and very actively managed resources play... should work out fine if prices of gold, food, and/or energy, increase, but it doesn't appear to have much to do with REIT investing. That said, I've also initiated a position, but that's because I aim for a very diversified portfolio -- REITs being only a part of it...
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