it is still generating real income, check out the interest coverage ratios.
so the only real issue is an LVR breach. if you look at some of the LVR's they are only at 60%. most people buy their home with an 80% LVR and the banks never ask for more secuity when values fall so why do they want to screw over commercial property holders?
the way see this playing out is that the banks offer a higher LVR across the board and direct all of the income produced from the properties to be used to reduce gearing.
so we can probably kiss any income good by for a while, however the real asset values will be preserved.
where can you buy an asset worth $0.60 for $0.05? because thats effectively what this is offering.
if AEZ attempts a capital raising i will be commencing a class action against the managers of AEZ. surely they wouldnt try and raise capital at this low price? surely they would be better servered by selling one or two non core properties?
i would rather they are forced to sell down all the assets and return the capital to unit holders. even if they did that you would get much more than $0.05 back.
i wonder how many people knew what the revals were and traded on that info?
AEZ Price at posting:
4.7¢ Sentiment: LT Sell Disclosure: Held
