Value

Would be great to discuss why this is trading at such a deep discount to NAV. My thoughts below, keen to get views from others:

Current Valuation:
NAV per Security: ~$0.815 vs Market Price of ~$0.58 → ~30%+ discount
Distribution Guidance (FY25): 5.0–5.2 cps → ~8.6% yield
WALE: ~5.5 years, with an ongoing strategic tilt toward healthcare (~80% target mix)

Why the Deep Discount:
Small-cap REIT with limited liquidity and low broker coverage.
Externally managed with stapled structure → adds complexity and governance discount.
Broader REIT sector pessimism (rising rates, macro uncertainty) driving indiscriminate selling.
Execution risk in healthcare pivot still unproven — WALE declined from 6.8 to 5.5 years.
Distribution yield looks attractive, but market questions its sustainability in a higher-rate environment.

Risk/Reward View:
Upside (20–30%+): From FFO stabilisation, rate cuts, and NAV convergence (buy-backs, asset recycling).
Downside Risks:
Rising interest rates = cap rate expansion → NAV downside.
Higher debt refinance costs → FFO pressure.Key tenant risk (especially in healthcare segment).
Execution missteps in healthcare asset acquisitions or divestments.

Re-rating Catalysts:
Interest rate cuts leading to lower cap rates and stronger NAV.
Continued buy-backs at steep discounts = NAV-accretive.
Sentiment shift toward A-REITs with inflation-linked leases.
Potential M&A or portfolio roll-up given mismatch between quality and market value.