at some point the market will realise there is value but why say that the divs will be paid from cash flow in June and then pay nothing now? its like saying the market didnt beleive us so now that the price has tanked we can cut the div because the price cant go much lower.
$1.3b in assets $750m debt, how about they take a 25% haircut (75% x $1.3b = $975m) on the properties and then use all of the excess cash ($975m-$750m = $225m) and then pay out the capital to the unit holders, by my calcs thats a capital return of ($225m/550m = $0.41).
Thats right, they sell off the properties at a 25% discount to their book value and we would still get $0.41 per unit.
for the market value of the units to be equal to the current value of the portfolio the property portfolio would have to be ($0.085 x 550m = $47m) ($47m + $750m = $800m) therefore a fall of 38.5%.
AEZ Price at posting:
8.6¢ Sentiment: LT Buy Disclosure: Held
