This is a longer term opportunity, and I'm patient. Regardless of the extent of the dilution of Costa shares, VTH is still entitled to 25% earnings before tax, in addition to the 8% base rent. This year will hurt the variable component, but in the longer term, there will be a recovery. Costa will also be a stronger company on the back of this, and so VTH will have a more financially robust tenant. A quick 'back of the envelope' calc suggests we might only get a 4c distribution this year, so about 5% at current price, even with Costa woes currently. The drop in VTH share price means I took a position today @80c, and will look to purchase more if they fall to ~70c.
VTH Price at posting:
78.0¢ Sentiment: Buy Disclosure: Held
