13.3% decrease in portfolio value, page-5

I agree with Annemc that on first blush many prospective investors will look at the 69% gearing, the B&B name, the fact that assets are in Japan and as a result may baulk at getting in.

However, I think that MM is correct in that BJT is looking all good from a fundamental perspective.

Strong ICR coverage, a steep discount to NTA, willing lenders, strong cashflows, 94% occupancy, a lot of cash in the bank and we are probably close if not at the bottom of the cycle, valuation wise.

IMO this latest announcement clearly shows that BJT is operationally viable and trading on an unjustifiably low SP relative to metrics.

When property assets start appreciating (as they will with time) the gearing ratio can just as quickly move in the reverse direction.

Although I don't think they need to do a cap raising, even if they do we should be rewarded with a MT SP appreciation that results from a de-risked balance sheet.

I'm definately holding for the low PE, low SP/NTA and high distribution yeild. If I didn't have so many I'd be buying more!

Cheers
John