Ann: COF HY25 Results Announcement, page-5

if you want to avoid a captital loss, then don't buy when the cap rate is low.

I remember years ago the cap rate on office properties was 8-10%, the share market remembers as well, hence the significant variance between NTA and share price (ie share price much lower than NTA).

Having said this, if the valuers and Mr Market decide the cap rate should be 8%, then there will be further erosion of the NTA. (cap rate is what now? 6.8%).

But the share price and NTA at 8% cap rate should roughly balance.

An 8% cap rate means the property holders are expecting an 8% return on the value of the property.
Lol pretty much what COF is paying out in dividends anyway.
Also at 8% cap rate vs funding costs, properties will be significantly cash flow positive. (unless interest rates go up another 2% odd which is not likely, the Australian economy is almost dead at a rate of 4.35% RBA rates)

So Net Net, I am a happy chappy.

Squatting and collecting my dividends as part of a diversified share portfolio.

Not buy not selling, squatting and collecting my very very nice dividend yield.