Ann: Sale of Wandong Properties, page-2

This news is definitely welcomed.

The good: NTA is $1.58 based on book value, and Wandong is around $14.3m in book value. The sale price of $17m is around +20% above book value. So that's definitely a good data point to support it's NAV.

The bad: Wandong is not representative of their other properties. This is located near Melbourne and is being sold for development. Most of their other properties are in the Otways / south western Victoria, and are not the same situation. Extrapolating +20% on book value as the transacting price would be foolish across their +$100m plantation assets. Unfortunately, this was the last Wandong on the books.

The ugly: Tony McKenna has noted that the use of proceeds are for repaying debt, and the new CEO is still pushing this agenda of Geelong grain port. Geelong port is under utilised in their take-or-pay situation, so they need to do something. But throwing good money after bad is not what you want to see. I understood that they may return some of the gains to shareholders, but clearly no plans for dividends.