Given that we could have caused the Trading Halt, I am sure AEU are well aware of our shared view on a rights issue !! lol...
IMO the announcement was very positive for LT holders as the higher risk ABC2 centres are largely sorted.
Really good to see that the price is holding up during the sales process of both closed centres and development sites (ie non income producing crappy assets).
Given the steep discount between SP and NTA shareholders have little risk of receiving <25c in a worst case scenario.
With the expected 88% return for all closed centres on PRE-IMPAIRED book value, and expected 75% return for all development sites I think a large chunk of debt will be repaid and the $1.14 NTA will not be savaged.
Well done AEU during this process.
I am sure some ST punters will dump as there is no prospect of immediate dividends but patience will see 200% on the SP within 12 months IMO ---> By this time next year SP will be 75c, still lower than NTA, forward PE of about 8, and with an 8c distribution expected for FY11.
My opinion only. Cheers John
FET Price at posting:
25.0¢ Sentiment: Buy Disclosure: Held
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