the point of strategy?, page-4

Guys Im a massive fan of the REIT sector

I have been for a while

Have you ever wondered what GPT would be trading at today if they didnt raise billions of equity at rock bottom prices?

Management always have a nice way of putting a spin on raising equity to shore up the balance sheet etc etc

Raising equity is a soft way out for management. They should have held the banks to ransom and threatened them to place the company into receivership. I bet you there would be no way a secured creditor would place the company into receivership given the consequences it would have on the whole commercial property sector.

If Centro is still here today, Im sure GPT would be also.

Even if a secured creditor placed the company into receivership, it would only require the company to sell one asset the debt was secured against at a discount to relieve its receivership status.

Thats still a much better scenario than raising billions in equity. Everyone thinks debt is an evil but equity can be even more evil.

Was there any need for GPT to raise any equity? Their EPS would be so much higher now.

New shareholders probably dont care so much but the old shareholders should be fuming.

Just curious to get your opinions on this?

Cheers