Be very careful with this lot. The current fund raising for the Diversified Property Fund, as well as diluting the previous shareholders almost out of existence, is intended to get the gearing within the arguably unhealthy and accordingly expensive 70pc NAB limit, however as far as I'm aware, the number crunching in the prospectus now available to outside investors (given that existing holders have failed to come up with sufficient funds) seems still rather "interestingly" based on Dec 08 property values and current interest rates. If the former have fallen (and most recent REIT reports suggest they have significantly) and the latter rise (as it would now be prudent to assume), the gearing issue could return and the forecast yield will presumably be cut to fund interest payments to the bank. Obviously the APZ headstock is a separate issue, but the questions about the management's approach are common. Still, 10/10 for brass necks in apparently offering to outside investors a scheme which their own paid researcher Lonsec has advised that it cannot recommend!
APZ Price at posting:
27.6¢ Sentiment: Sell Disclosure: Held
