Ann: TPG: Postponement of Extraordinary General Meeting, page-8

  1. 443 Posts.
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    The timing of the transformation of TOT from a debt free investment in IAP to owning 3 buildings with 30% gearing could not have been worst...

    Going back to the HY22 report:
    Building 1 - Cremorne VIC - no mention of rent review...

    Building 2 - Brisbane - 3% rental reviews - would have preferred CPI
    Single tenant - Michael Hill whose share price has dropped 33% YTD.
    With cost of living rising there is expectation that people cut discretionary spending - jewellery at the top of the list.

    Building 3 - Canberra - 55% government tenant with annual rent review at 3.5%.

    Another unknown are the terms for the 90M$ debt TOT has taken for the acquisition.
    Can the div be maintained?
    If the buildings remains 100% occupied (risk of recession?) and the rent reviews compensate for the interest rate rise on the debt then yes.
    But that's a lot of "if".

    With bond yield rising, the current discount of ~33% to NTA is quite justified considering all the unknown.
 
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Last
42.0¢
Change
0.000(0.00%)
Mkt cap ! $90.91M
Open High Low Value Volume
42.0¢ 42.0¢ 41.5¢ $14.13K 33.88K

Buyers (Bids)

No. Vol. Price($)
2 75208 41.5¢
 

Sellers (Offers)

Price($) Vol. No.
42.0¢ 63114 1
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