Interesting that if we presume the vacant floors get leased and...

Interesting that if we presume the vacant floors get leased and the 3c distribution for the year becomes sustainable this current share price brings us back to an 8% yield with the possibility of one further year of franking credits thrown in as a bit of a bonus. This is against a current (post capital raise) gearing rate of 31.1%.

The issue is the still tight cap rate of 5.3%.

Older buildings seem to be changing hands around 6% now and the the stand off between buyers and sellers has eased which is giving a bit more valuation clarity.

We potentially should factor in the high quality of these buildings and work on the basis of a 5.75% cap rate and the gearing blowing back out to the mid to high 30s?

I'd say we see the NTA drop a further 11 percent to 65 cents.

This would give us a current NTA discount of 43% or 38% if we see the NTA drop all the way down to 60c.

This is really an old fashioned "cigar butt" at this point worth more dead than alive.