Rennis. I don't really know how they work out the distributable income. I guess it would be in the original PDS however I'm too lazy to look right now :-) Although given they only distributed a fraction of prior years earnings they would techinically still have past earnings up their sleeve if required (and distributable).
I certainly agree that management is under the spotlight. Apart from the obviously close vote on letting the hedge funds out the discount to NTA is wider now than it has probably ever been. Traditionally LRF has trade close to the "post thoeretical tax" asset backing. It is not well well below even this - a 30% or so rise would be needed to get to that level.
The other issue that management probably has no idea what to do with short term is the units held in LRF2. They can not cancel them as that was voted down. Noone will buy them at a price that is allowed since that is well above current price. They are forced to hold them until the unit price rises to a level where they can be sold - which might be a long time in the current environment.
MJS
LRF Price at posting:
0.0¢ Sentiment: LT Buy Disclosure: Held
