hi spec, i see that option thrown about quite a bit lately...

hi spec, i see that option thrown about quite a bit lately especially with regards to the property trusts which have been smashed on the market, trading well below "NTA".

the reality is with these geared property trusts is the NTA will not be a constant if for instance the shareholders agree to cop a 40pc discount to sell the lot - a contingency you must accept given the lack of funding/buyers/state of the market.

the hypothetical discount to "book value" would be xmas without the gearing. but (off the top of my head) MCW holds 5.7b in centres and owes 2.9b in debt.

so you end up with consideration of 3.4bill, pay off your 2.9bill and are left with 500 million divvied up between 1.4 billion shares.

circa 36c per unit.

please dont take my post as down ramping, i have no interest in knocking this stock down further than it already has been. i simply want to try and shed some light on the reason for the apparent disconnect with the share price day to day and the stated "NTA" of the trust.

i just feel the market is saying to wind her up you would need to take a massive discount to your current valuations, and thats all she is worth.

wether or not you agree with the market is another thing, and if you dont then there is some good buying here.

i would love some feedback on MCW (and other REITS in general) on how to find the balance between retaining income to paying down debt and distributing it... given the tax implications the trust is subject to.