aapzb risk

There's a non-trivial chance that Australand will eventually exchange the ASSETS for shares. Yes, that will be heavily dilutionary, but given that they've just done a 1:1 rights issue at a whopping discount to the (then) share price, why would they baulk - if credit markets are bad in a year or two - at an issue at a 2.5% discount to the VWAP?

And issuing $275 million shares to investors who are mostly after a reliable income stream could drop the share price considerably. So I wouldn't count on getting that 30% capital gain to close out with.

Even as a straight 16% income yield AAZPB looks attractive, but there are other contenders to consider.