I increased my holding at $2.99 yesterday by 10%. It trims my...

I increased my holding at $2.99 yesterday by 10%. It trims my average price to having a "3" in front of it, which is nice. Larger quarterly distributions too. At $3.00 we're on an almost 8.7% yield and a > 45% discount to our fictitious NTA. I won't be touching this again until $2.70 (so, hopefully that means never!). However it's no time for big bets from me on this fund. I'm taking things very carefully.

Last night I re-read the speech from our AGM a week or so ago. Then read it a third time. After that I went to YouTube and found the AGM on Charter Hall's website. I recommend checking out "Section 3: Questions". None of the questions are from analysts. They're all from retail investors who expressed a mix of emotions ranging from frustration to anger. I thought the fund manager and chairman handled them incredibly well -- especially the last question from a disgruntled and confused unitholder who actually made some good points. Avi and the chairman were very honest. No shirking questions or trying to pass blame.


(photo of the YouTube video. It's audio only)

CLW admitted to not going hard enough with hedging. Reading between the lines, there's a tangible, concerted effort being made to sell assets "but definitely not a fire sale". It sounds like there's at least two properties in advanced negotiations to be sold which should sell for a few percent below book value but nothing serious. It sounded like an announcement could be expected before Christmas. Reading between the lines and something Avi said I'm guessing here, it's office sales at slightly below NTA.

Hedging is sorted this year and next and is being monitored closely. Obviously they want exposure to interest rate cuts (as implausible as it sounds today!). Properties are 99.9% leased to tier 1 tenants on long leases. They mentioned how it's a sector wide issue, not CLW specific, which is causing the underperformance. They also said there's significant headroom with income and asset value covenants.

I was also encouraged by this morning's announcement by VCX which has sold a couple of retail assets and various unwanted land parcels *above* NTA.

I was encouraged by this information and hope it helps other unitholders make decisions on what to do with their positions. For mine, I feel the almost 50% discount to NTA and almost 9% distributions compensate me enough to feel comfortable holding, and nibbling at my position as l await better days.