Yesterday was a curious day, with Irongate (2/3 of the TOT market cap), zinging up to 52 week highs, $1.67. And TOT trickles down...
The recent newsflow for IAP has been positive (both Half yearly results, then on Friday sold an Canberra asset 18% above book value). I don't know the cap rate on this asset sale - I assume close to 5%, though I should look it up. ANd of course, 1 asset sale can't be extrapolated to the rest of the portfolio (+18% in Book value). Though if they could sell 1 or 2 more that would help firm up the punchy valuations.
There is more to play out for the Irongate story, over the next 6 months. Quite possibly 360 will sell out at the right price. To another group with deeper pockets ($1bn is alot less money to Dexus, Centuria etc.... with the firepower to take it over more easily).
Still smoking do you have a view on the NZ investment (PMG?) I think the market hasn't woken up to this yet, though it would help to publish some more detail on the profitability of PMG (currently only metric is the FUM, which has grown strongly, and obviously highly linked to Profitability, though I still prefer to value assets on cashflow/NPAT etc).
TOT Price at posting:
91.0¢ Sentiment: Hold Disclosure: Held
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