A few additions and clarifications: 1. Trinity reported a value...

A few additions and clarifications:

1. Trinity reported a value of $24.5M for the Yamaha Centre in 2013 (not $25.5M). Apparently independently valued by Colliers during 1st half of 2013. As explained above, I'm skeptical how they arrived at the same value (or slightly lower) one year later.

2. TIX two Qld properties increased 6.62% for year to March 2014 (vs 8% for TIX entire portfolio). No breakdown of property valuations to Oct14 (average 5.5% increase), but $27M is still likely closer to actual market value of the Yamaha property.

3. Initial yield is indeed likely 8% (not less than 7.5%). This is based on: (a) purchase price of $27M, and (b) net income of $2.16M*
* Colliers stated NET passing income of $2.071 in March12. CPI averaged about 2.2% to mid 2013 and 2.5% to mid-2014, so current net income likely around $2.16M. Probably need to also add in transaction costs, but also rental increases for the additional 6 months. Overall, data suggest 8% is likely actual initial yield (and TIX would have evidence of this relative simple calculation).

4. CPI increases do not eat into debt-related earnings as long as interest rates remain stable and NTA remains stable (or decreases less than income-interest difference). Debt becomes a problem when interest rates rise and/or the asset's NTA falls more than the income-interest difference.