Ann: Admission to Official List, page-31

1. its debt level already at max. so the development , where the money going to come from? Payout ratio is 250% ,so they are running a ponzi scheme, paying dividend out of debt, and development, debt most likely or equity. everything debt with this. I note the UBS banker is running the show, must have studied Financial engineering 101 at college.
2. Dropping cap rates. Is that specific just to HMC? Cos i thought every reit has that same benefit. Nothing especially unique to HMC. There are a lot of reits above 5.0% yield much better value than HMC. This has no trading history and trading a premium. Bizarre. Even AVN is on a better yield and has more trading history. This doesnt deserve a premium to AVN. AVN has most of its sites in sydney where a housing boom is occurring. i hold AVN.
3. Development. Half the developments are in regional areas e.g. Cairns and Regional NSW. Not that lucrative, the rents wont be that economic. Nothing compared to some of their trading sites. They will struggle to get their earnings to the mark to cover the dividends IMHO.