Hey Kevi. Gearing was actually up from 50% in June. I guess that is part of the reason why the market is spooked. That & the fact that the recently announced sales have only partially completed & the 2nd phase has a reduced number of properties now (15 down from 23 - from memory). So, the buyer either doesn't want those extra 8 properties, or can't get the finance for them.
On the positive side, it doesn't appear that MCW is operating "ghost" malls. The average leasing for their malls in the US is 95%. Not too bad. Their portfolio outside of the states is better though.
I can't see any reason to sell my now very small holding, which has tanked ever since I bought. Surely it can't get much worse than this. They still have quite a bit of headroom left in their leverage covenents. I would've thought 7.5% capitalisation rate is quite reasonable, considering the type of tenants they have, and with interest rates very low at the moment. OIF only has around 6.7% cap rate with Woolworths as their main tenant (warehousing).
MCW Price at posting:
11.5¢ Sentiment: Hold Disclosure: Held
