Ann: Appendix 3Y - Peter Done, page-7

A lot of people are a little bit hysterical out there. Interest rates are not even at pre covid levels yet when COF was trading around 3 dollars a share, and some are already panicking. Meh. Will the RBA be able to really raise the cash rate to 3 to 4% without completely crushing the economy? I really doubt it. A couple more raises and the demand destruction which is sure to follow as people cut back spending should tame inflation a bit. Time will tell.

I too will also keep buying as it falls. Will I run out of money before this hits the bottom? Probably but it doesn't matter too much in the long term. Yield is now approaching 10%, and even if the distributions decrease a bit over the next couple of years, it should remain decent relative to the current SP. Sure, NTA will come off somewhat, but it's the FFO that interests me rather than NTA. If they can increase their occupancy from 94%, which given we are coming out of a one in one hundred year event (a pandemic) I think is probable, the FFO should be protected even if interest costs rise.

The only thing to worry about is the gearing, as NTA falls, but you have to give management some credit otherwise one should not be investing here at all.

So I will let Mrs Market have her tantrums and accumulate as it falls. Then sit back, collect my part of the rent (ie dividends) and see where we are in a couple of years. I am patient because I know I can not get rich quick (not many can; many think they can and should, it's their right!).