Carindale Property Trust

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Carindale Property Trust (ASX: CDP) is an unusual real estate investment trust because its sole asset is a 50% interest in Westfield Carindale, the largest shopping center in the Brisbane region -- over 116,000 square meters.

Carindale Property Trust is Small

This certainly seems risky, yet Carindale has been listed on the exchange since 1996.

It's managed by Westfield Management Limited, part of the Westfield Group. Frank P. Lowy is Chairman.

This concept is not necessarily bad, but does tend to indicate that the company is not interested in growth. Perhaps it was set up just for this one particular purpose, and somebody profits from it.

In Brazil, there's a structure similar to real estate investment trusts, and most of them are similar. They own one or just a piece of one property. The rent goes to an administrator. The required dividends are paid out to shareholders. And that's that. Nobody does anything else.

This company may pay dividends that will rise in time as rents for that shopping center go up in the future, however, and that's a form of security. But if anything were to happen to damage the prospects or value of that shopping center, this would be very bad for this entire small company.

Carindale Property is an A-REIT that is obviously not well diversified.

Next: CFS Retail Property Trust -- high quality shopping malls in Australia

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