"my research is almost done. with sizable debt and a valuation...

"my research is almost done. with sizable debt and a valuation heavily derived from over-inflated property price"

Are not the valuations relatively current ?
The recent sales at greater than 90% of book value indicate at least some of the properties are close to market valuation.
Or were these sales annomalies ?
Is not the debt geared at around 32% LTV not taking into account residential loans classified as current liabilities, 32% seems low to me.
Admitadly the interest cover ratio could still go lower and gearing could get nasty going forward if in 2014 they fail to get a low interest rate on the around $250M in debt that falls due
I dont know how their interest hedging works in mitigating an interest rate increase.
Also If they have a residential land project development costs higher than expected/with poor sales that could also negatively impact gearing, the inability for QLD to compete with Kalimantan on coal could help to keep construction costs low in QLD.

The downward trend in share price however indicates your assumptions are more in line with market sentiment towards FKP than mine.