Ann: Acquisitions and Capital Raising , page-5

kingston,

I don't see much bad news at all.

They have been slowly accumulating these distressed assets out of existing cash on hand, from operations and from asset sales like New York, but there is a very large, very distressed market of quality assets out there ripe for the picking. They just don't have the cash on hand to get everything they'd like.

So I'm happy that they decided to bite the bullet, raise capital at a good price (small discount to NTA as you said) and get a bunch of these A-grade projects at firesale prices while they can.

Organic growth is all well and good, but the best returns in business usually come to those who make judicious use of debt/equity leverage at the appropriate time.

And that's what this is. It's also good that the offer was fully subscribed - shows there is a lot of confidence towards this company and its business model.

Agree with your comment about the NZ deal, but look at it this way - when NZ finally does settle we'll have another cash injection for more acquisitions!

Results come out in about 8 weeks... will be interesting to see the revised NTA in particular, and also the dividend. I suspect they will maintain it at 0.5c, and that makes good business sense (use the cashflow for growth rather than frittering away in divs) but part of me wants to see a little bit more. :) It is my largest holding now, and my second-largest div payer.