You need to understand the nature of this fund, and that is why I asked for you to the homework on it.
Lease Income is coming directly from Timbercorp themselves, so it is secured as long as TIM is still solvent. Irregardless of the water allocation suspensions etc.... this is a risk that is taken on by the managed investment scheme investors when they invest in the almond projects. It is the money that these guys pay to TIM, which is used to pay the lease yields to TPF. So, contrary to people's opinion, TPF is not a play on the actual projects (it doesn't matter if it is a cr@p year for almond growing), the TPF fund will receive its lease yields no matter what. Rain and future crop estimates is of minor consequence.
With respect to buying a genuine agri landholding property trust, this is a genuine bona-fide land property trust. GTP just spun-out their almond assets into an unlisted property trust through RFM Riverbank, however, from memory, it is not paying the yields that TPF is.
TPF requires a real understanding of the nature of the investment, the state of play of water rights and allocations and an understanding of how & who is paying the yield.
The major problem with TPF is that volume is low, however, it is a listed property fund, which (unlike an unlisted fund) gives you an immediate "out" should you need the cash.
The risks on this one is that:
a) Timbercorp goes broke and cannot pay its rental obligations to the Fund; and
b) land and/or water right values tank.
My reason for investment is due to my belief that the above won't happen (in fact, the opposite will), and that you are buying assets at a discount to what they have been valued at.
Cheers - PT
TIM Price at posting:
0.0¢ Sentiment: LT Buy Disclosure: Held
