Ann: Closes Adelaide - Announces Pasadena Leasing, page-4

re: Ann: Closes Adelaide - Announces Pasadena... not really.

The only good news was they managed to contain the losses to NAV to 6% (assuming the rest of their portfolio performs the same as the tower in murdertown). But that is still confirming everyone's views that MOF's NAV is overvalued, and that price realisations will be lower, hence they are closer to their covenants than they made out in their glossy billion-page brochure for the rights issue.

This is also an Australian property, not an American property. Sure, they realised one sale in the US for a haircut, but that was a few months ago, and in this Great Recession, a few months is a long time.

So, really, the reaction is fairly understandable. MOF has a loooong way to go to overcome its LVR headaches and realise value for its illiquid assets.

I'm rating it a hold, as usual, because despite the above, its no surprise.