No. of Recommendations: 1
Also, when your stock is at 33-34x, it makes a lot of sense to buy up companies on lower P/E around the world using your stock as currency.
P/E arbitrage.
Kind of reminds me of the conglomerate era actually, they operated by glueing low P/E companies into a blob and paying with high P/E stock.
Consequently, ConglomerateCorp gets a big jump in earnings per share from the value stock they picked up, and that 'earnings growth' naturally justifies their high P/E.
However, if the US market were to randomly dump in price*, the bid may fail or Segro stockholders may end up disappointed.
There is a lot more air underneath the prices of US REITs than UK REITs.
TRS
* korean market dropped 30% in the last week or so, for example
