Richard Hemming, Under the Radar, is unimpressed with the bank...

Richard Hemming, Under the Radar, is unimpressed with the bank guarantee in which RFF is involving itself.

"However, we are lukewarm about the investment in the bank guarantee. It is complex, changes the total portfolio’s risk profile and appears to be inconsistent with what a property trust should do, i.e. investing in hard assets to earn an income steam to fund distributions. While there is no direct operating risk associated with the guarantee there is a risk that if RFM were to default on its $250m bank loan facility, this guarantee will be called upon by the bank. "

any thoughts on this?

fredo