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21:17
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Originally posted by rennis:
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They'd lose the management fee if they did, but it could be a possibility given their future plans. I'm actually a bit concerned about the plans they have in the agricultural space if they use VTH as it currently is as the vehicle into which they indiscriminately add other assets. To me, this thing currently looks to be relatively low risk with a good long term future, primarily when the tenancy comes up for renewal. But that is 5 or 6 years away, a lot can happen in the meantime if they leverage this up with risk. Having said that, astute additions would definitely add value, as this is currently trading at a discount, probably because of the perceived market risk of having one tenant, and because of its unusual rental payment terms (which I happen to like). So I'll suggest a 'cautious buy' position. For me it is currently ~5% of my portfolio, so I have enough for now.
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Good point about losing the management fee. They claim to be successful in managing a lot of other portfolios as well. So hopefully they know what they are doing. I haven't really looked into how successful they have been in their other portfolios though.
