RAT have announced today that they intend to write down their...

RAT have announced today that they intend to write down their properties by about 7% overall.

For the properties acquired 2-4 years ago, back to square one, cap gains since then were illusory.

This puts RAT in breach of some of its covenants.

But its not really news, is it ? A 7% devaluation has been on the cards for a long time, the market been telling all the property stocks that news.

There was no disclosure about unexpected vacancies or substantial shortfalls in tenant rent collections.

So is this fatal ?

Is there any particular significance to them announcing today rather than any other day ?

Are the securityholders whose convenants have been breached going to act ? Would they be better off by doing so ?

Any thoughts on this ?