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Ann: RNY debt update-RNY.AX, page-7

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kingston67

191 Posts.

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14/11/16

12:46

Post #: 20597582
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Originally posted by Darre11 ↑

The 13.3% discount to the June 2016 is very disappointing given the portfolio values were dropped in June 16. The problem is the forced sale nature of this exercise, a buyer picking up the portfolio at US$211.8m (13.3% disc to June 16 portfolio valuation of US$243.3m) would be getting an approximate gross and net yield of 19.5% and 8.4% respectively (based on half year gross and net revenue of US$20.7m and US$8.9m).

If shareholders had to sell the properties at this price, I would rather management raise equity to paydown debt and reinstate the dividend. There are a few institutional investors who have been holding on to this for a few years who could potentially support a rights issue.

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Some fair points Darre11. The trouble is now that the SP has been shredded any equity raising would have to be heavily dilutive to make much of a dent in the debt load. Interesting to see what Sandon Capital do now.

RNY Price at posting: 3.8¢ Sentiment: None Disclosure: Not Held
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