Ann: CLW 2024 Half Year Results, page-14

Peter you are unaware of the issues with CLW.

1. They are currently at ~41% look through gearing with a 50% covenant. It does not matter when their debt facilities mature, if they breach covenant the loans are in default.
2. Their valuations are still fake on most of their assets, not by a small amount but by ~10-30% generally. This is coming from someone who buys these types of assets, if you were in the space and spent the time doing an IRR model, you would know many of their assets would be no bid at their current valuations. They bought long WALE and generally fixed reviews at the peak. They also manufactured yields by buying leasebacks at inflated rents on long term leases with low fixed rent reviews. These types of assets are rightly worth much much less now, once again do an IRR calc to understand why.
3. Because of No.2 above, they have been unable to see many assets to de-lever.
4. Because of No.2 above, they will continue to have portfolio devaluations each half year.
5. This means LVR will continue to rise and they will not want to raise equity till the last moment because it will kill their reputation, this means they will raise at the worst possible time.

This was obvious 18months ago.

I think it will be very hard for them not to stave off a capital raise in the next 12 months. Look at TOT for how this goes.