iif is no centro, page-20

i think the divended reduction as announced in Dec does very little ie it reduces debt by just 2% per annum. The risk i see here is as valuations adjust negativley, the gearing increases. It will take plenty of time to sell their assets unless they do a portfolio sale, Some commentators suggest industrial cap rates will increase and true values will fall 20% plus, particularily if it is offered as a large portfolio.
there is a tsunami of assets for sale globally, values must fall to effect transactions. I see no solution to IIF gearing problem. If it sells assets at the volume it requires ie around $1 - $2 billion, and at 20% discounts the gearing is unaltered, just the quantum of debt reduces.
I liked this stock becasue it is a purer rental model, what REIT's should be, however its Canadian acquistion has contaminated the book, they paid too much.