I guess seller might be Orbis not being a subs holder?IIF played...

I guess seller might be Orbis not being a subs holder?

IIF played the REIT collapse far better then IOF did considering they had much higher gearing and lower ICR.

Their strategy of delaying the inevitable capital raising to reduce gearing has given rewards to those shareholders that stuck with them during the decline or bought near the bottom.

IOF on the other hand *in my view* sold out those who stuck with it or bought in, in a dilutive low priced share placement to instos near the bottom.

Even after the current placement, IOF still looks like a better LT investment to me due to much lower gearing which should enable it so do some cherry picking when things improve in the REIT sector.

I dont think anyone can fault IIF management on the timing or price of this placement, but it seems destined to remain higher geared than IOF. And as the property sector might not be out of the woods for a few years yet (even if stabilized for now) it remains a higher risk proposition.
That was also the reason I liked it at the bottom...because it had such high gearing to a change in sentiment.

It is possible the SP is being supressed prior to a prop post completion, but I wouldnt count on that. It may be than many have had a good run and are willing to quit?

Last I looked they had a big CA deficit due to upcoming refi (dont know the specifics or whether that is complete) and the placement was inevitable to get the bankers onside.