nta

Just flicked through the annual report and noted the impairment comments on direct assets. $8m impairment on $60m of assets.

However, in the NTA of $2.33, it states that direct assets are valued based on estimates assuming assets are held to maturity.

I wonder whether impairments have been taken into account in calcalating the NTA. It would appear not, although not definitive.

Bottom line is that IMO, the NTA is rubbery, particularly given that they intend to sell assets thus incurring redemption penalties and probably big discounts on direct assets if they push to sell within 12 months.

I expect there is good upside at 70 cents, but if they liquidate most assets within 12 months, I would not be totally surprised to see a final outcome sub $1.50, and potentially quite a bit below.