Madoff... I don't have the answers but have for some time had...

Madoff... I don't have the answers but have for some time had the questions rolling around in my head. If my basic maths is right this is teetering on a yield of about 20% + !!!

The issues lists however gets longer:
1. I would have expected property cap rates in Japan to have firmed. Surely the reconstruction program post horrible tsunami is starting to generate some economic prosperity. And presumably all construction / engineering capability has been deployed to that part of Japan therefore slowing any office space inventory build in the south. But alas, overall to June have been reported as weakening.
2. I'm yet to interpret the AUDJPY behaviour and impacts given ever changing hedging program. What ought to be simple to interpret is not so simple to understand. Need a pencil, paper, rubber, calculator and 2 hours I guess.
3. The continued resilience of the AUD is breathtaking. I have attributed it to demand ex Chian building and feeding itself...hence it can continue IMO
4. I have no doubt the AJA is about to accelerate the transition to a lower debt ratio. Hence reintroduction of DRP. The end target debt equity ratio has not been stated but I suspect significantly less that 70/30. IMO they may target a obscene lazy management 50/50 which will require significant dilution. Hence swapping low cost debt for high cost equity...
5.I also expect that the restructuring of currently out of the money debt facilities will be reset with an equity component as part of the package. So if you were a wiley banker having to accept equity as part of your recovery plan, would you take a loss on a small volume of shares thereby pounding the price south?? The prize of course is a greater number of shares.
6. I expect that the building stock is aging gracefully, but aging nonetheless. Everybody loves new. Is AJA's portfolio into that 'getting uglier' stage?? Possibly need to overlay construction in progress to answer the relevance of this point.
7. If you follow the sector you would have seen the circus of EDT, another listed REIT. The strength of the AUD and the financial communities reporting and interpretation IMO accentuated the underlying value changes and presented foreigners a very attractive price. Let me explain. At the end of the day as a shareholder the only exchange rate that matters is the one prevailing at time of your dividend cheque. Any other time, I wouldn't give a rats! All I have to do is form a view what will be the long term prevailing exchange rate... ie that around my dividend cheque time...and IMO it's not 1.10! Regrettably, I'm not sure the market shares my view but the suitors of EDT possibly do...
8. Lastly, compliments of the Greeks and the Italians and the Americans and etc etc, the market continues to soak up as much uncertainty as ever imaginable. The market looks to be off another 300 pnts this morning ... after all, how much can a koala bear?

.....AJA is bricks and mortar, management continue to dumb it down to a pure Yen based bricks 'n mortar play, have stayed true to their plans and endured at least 2 shocks (aka tsuanmi and GFC1...), yield is tastefully high... it has to be worth a look.

Selling 15000 shares is terribly terribly terribly stupid ...

On balance though, sadly I think there is much more softness to come ...

Have a great day.

All of the above basic rants and opinion!