eofy results!!!, page-33

val1828 - whats with that sleep "hoo ha" anyways. Rest the mind, repair the body, keeps you young - who needs all that stuff.....! Just kidding. If this moves the right way - will make some time for a catch-up nap.

More "mid night musings" in honor of MLC as follows.

Have done some more reading. Had look some time back - but today in more detail - of course.

See the following link for original MIX share float PDS.

It reads as a pretty sorry tale of ticking all the wrong boxes back in 2005! Asset values down, tenancy down, $AU up, US economy down - kind of went ALL impossibly wrong. In any case is testament to MIX managements efforts in saving this REIT from complete disaster.

It is a scan from ASX - more than good enough.


http://www.asx.com.au/asxpdf/20050428/pdf/3qngr0tt2c8qd.pdf


Some of our other concerns are partly addressed here (given the minor risk of having all assets clumped in one city)

1) NATURAL DISASTER - see section 7.13, page 65 - all are insured at least to some degree

2) TERRORIST ATTACK - see section 7.13, page 65 - all insured specifically against this

Would be nice to email MIX and see that this is all still up to date?


REGULATIONS
See page 80. As for the almighty governing code that MIX must adhere to - PDS refers to the "US INTERNAL REVENUE CODE OF 1986". Will go hunting for a copy of that later.
Yes - have not bothered before.

DISTRIBUTIONS
See page 94. Very clearly states that the trust MUST distribute at least 90% of taxable income.
Limiting factors?
The one that immediately concerns us is -

1) US SubREIT will be able to pay its debts in the usual course of business after making the distribution. I can't see where that can be too far away. Just depends on your version of short term.

As for clause 2 - maybe someone with a bigger brain can tackle that calculation? Will have think about it later.

INCREASE OF UNITS
The only reference I can find to dilution anywhere having read PDS again is on page 107.
DRP limitations are - no more than 5% discount for new Units issued - shareholder can of course decide if they want $$ or more units.
Calculated as VWAP for the previous 10 days trading on the ASX, prior to the 1st business day following the date the distribution is paid.

So timeline for additional units being added in my mind is...

MIX confident it can have a decent profit
MIX announces distribution (29th June, 31 Dec 20XX or extraordinary announcement)
MIX share price goes gang-busters
MIX share price trades up and down for a month or so
MIX 10 day VWAP prior distribution payment date is calculated
MIX pays distribution to ME and YOU! (31 August, 29th Feb 20XX)
Then the opportunity to re-invest distribution funds in MIX is given at no worse than the 5% discount on 10 day VWAP.
MIX share price stays fairly steady - as we have some dilution - but a strong share price and real money to buy more property or pay down existing debt.
Comet crashes into the globe and we all dead anyway.

Something like that?




Constitution is also on ASX and has further info on distributions and new units issued.

See link below.

http://www.asx.com.au/asxpdf/20050519/pdf/3qy68468sxcwg.pdf

Sleep time