Ann: FY23 Results presentation, page-13

I bought a first position over the last couple of days at $2.32. Very low liquidity, so makes creating a position not easy. And conversely with low liquidity it will also be difficult if I want to exit. So this might not be stock for everyone.

But at $2.32 with P/NTA of 0.62 (I would like it lower given the carnage in REITS and many other REITS trading now on even more of a discount to NTA) and gearing of only 28%, I thought its worth a 1st position 'punt'.

Just don't believe those historical dividend yields, like other REITS most of the debt interest cost is unsustainably low because they fixed a good portion of debt with low interest rates. As the fix hedging rolls over, DXC will incur much higher interest rates, this will really eat into distributions.

Worse, given the long leases with the majority of leases only having 3% rent increases, this will act as a chain as rents can't rise fast enough to offset future rising interest rates. I expect this to be a problem in FY26, so one can't even rely on management dividend guidance for FY24!! (since the hedges will still exist for this year)