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$1.31 vitalharvest freehold trust

I hope you're right about the distribution. I just assumed the...

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BlueTea

49 Posts.

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19/07/20

21:00

Post #: 45968403
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Originally posted by rennis: ↑

The dollar value of the base rent paid won't decrease, it can only increase, but the of course there are costs to pay, including interest on monies loaned, capex costs and opex costs (e.g. management fees). So that can impact what is left to distribute.
The company has not been listed long enough to see a trend in payments over the years. What I will note is that in June last year they estimated a distribution of 0.5 cents based only on the base rent, but the payment eventually made (which included the variable rent component) was 1.65 cents. This time around they've put the base rent component at 1.5 cents, or 3 times higher than last year. If I keep it really simple and assume approximately the same variable rent contribution as last year, then the final distribution could be around 2.5 cents per share. But, I stress this figure is a complete guess, as I have not tried to take into account any seasonally specific events affecting last year and this year, e.g. bushfires.

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I hope you're right about the distribution. I just assumed the estimated distribution was equal to the base rent. But it does make sense if they subtract operating expenses in their estimate. That would give the company quite an attractive yield once variable rent is accounted for.

VTH Price at posting: 79.0¢ Sentiment: Buy Disclosure: Held
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