well the deal they got was better than having to repay the...

well the deal they got was better than having to repay the facility so thats the way im looking at it.

if the occupancy falls to 90% they will still be able to meet their interest costs, the biggest risk is a continual fall in property values.

its hard seeing that in europe where most of the property is privately held, unlike here in Australia. so i dont expect to see massive deleveraging occuring in mainland europe, ie not to many forced sellers from REITs because they dont dominate the market like they do here and in the US and the UK.

so i wouuldnt be surprised to see them cut divs further, say to $0.04 or there abouts. they have to pay something out and they have to sell one or two of the properties.

the most frustrating thing so far has been that they have not given more of a current update to the market.

i have to say that buying these shares at $0.11 allows a massive margin for error. there is no way that RBS will want its clients being forced to sell assets because of a breach in the LVR, we are talking an LVR of 65% with gearing currently at 53%. property values have to fall a further 12% for a covenant to be triggered and i think that RBS will just let them increase the LVR out further if needed as they key matrix is interest coverage.