By my calculations on the facts available at present, the 2021 gross rent run rate (4 months of 2021 annualised) is ~ 5.5% higher than 2019 gross rents (albeit at a 96% cash collection rate over those 4 months - which, in my view, is not all that unreasonable so close after the COVID lockdowns in the immediately preceding months).
2020 capitalisation rate was also 27 Bps higher than the 2019 rate, yet there has been a 50 Bps rate cute over that same period.
Should the 2021 run rates continue (and ofcourse subject to a few other nuances) - it would not seem unreasonable to me for a fair market asset revaluation to surpass the 2019 value. On this basis, I find it difficult to see an NTA/share of less than $8.00 by FY end.
I believe these estimates are reasonably conservative. I very much welcome/encourage any alternative views.
May I also respectfully ask if @madamswer is still following this asset/if you have any views on its fair market value?
Jausty
CDP Price at posting:
$4.67 Sentiment: Buy Disclosure: Held
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