They had flagged large lease renewals as a difficulty for 2014 but I was hoping the improving US economy may help with that. In the end occupancy down from 81% to 75% was more than I expected and hence not surprising that property valuations fell US$ 10 million.
Some positives though;
. NTA 54c (up from 53c with currency gains overcoming valuation falls)
. Pretty conservative capitalisation rates used 7.98% and down only marginally from 8.04%~ in 13, especially given the fall in long bond rates
. inching closer to 2016, 2017 debt maturities which should provide lower interest rates / restructuring opportunities
. some positive post balance date events with a property sold and reduced mezzanine debt rates
. lease renewals for 2015 less challenging than 2014 (11.3% v 14.9%)
. one big lease renewal achieved already in 2015
Overall a hold for me at 34.5c
RNY Price at posting:
34.5¢ Sentiment: Hold Disclosure: Held
