- Majority of institutional investors based on the east coast
- Chairman and Deputy Chairman hold around 20% of the business
- Retail includes a large contingent of retirees looking for a reliable income stream
The Property Tribune previously spoke with Cedar Woods (ASX: CWP) managing director, Nathan Blackburne in Real Story, where the Perth born and raised MD spoke about his journey from studying the only property undergraduate degree available in Perth at the time to leading an ASX-listed developer.
Overview
The Cedar Woods register comprises 50% institutional investors, 25% retail investors, and the remaining 25% board and management.
Mr Blackburne said CWP’s institutional investors are based around Australia, with most in Melbourne or Sydney. The international contingent was “quite small”.
“There is a mix there [the entire CWP register], and a good story with skin in the game for management and the directors,” said Mr Blackburne.
“In particular, our Chairman and Deputy Chairman hold around 20% of the business and have been there from the start.
“They have the mindset of a retail investor, and that has a very positive bearing on the way our company is run and governed.”
Retail
The company has a loyal investor base, Mr Blackburne said many of their retail and institutional investors have been with CWP for close to a decade.
“There are varying profiles of retail investor, but the most common… would be someone nearing retirement or retired, who is looking for a reliable and growing income stream,” said Mr Blackburne.
Eligible shareholders of CWP also have the opportunity to receive a 5% discount on land and 2.5% discount on houses, townhouses, apartments, and commercial units in Cedar Woods’ projects.
One must, of course, enquire how many investors choose Cedar Woods for the discount, Mr Blackburne said:
“It would be fair to assume some retail investors, perhaps smaller ones, may have been attracted to the shareholder discount offer, but hopefully the experience we’ve been able to show them as an investor in Cedar Woods, in terms of delivering dividends, means that they are enjoying both the property they have purchased from us and the investment that they have in us.
Institutional
As previously mentioned, institutional investors in Cedar Woods are mostly based in Australia, and focussed around Melbourne and Sydney.
Like many of Cedar Woods’ retail investors, Mr Blackburne said many of the company’s institutional investors have spent significant time with CWP.
“The institutional investors have stronger regard to the macro themes at play at any point in time, in investing in stocks such as Cedar Woods, but of course they’re making decisions based on the dividend yield, and the growth that they would expect to enjoy from a stock like Cedar Woods.”
