Hi Rubs, they could pay 10%pa for a while if they get this deal...

Hi Rubs, they could pay 10%pa for a while if they get this deal done and take the cash, but I for one don't understand the rest of the post. Occupancy rate is 97%, not vacancy rate. TOT are not getting $254m of property and $200m war chest - i wish they were but they are not. They own roughly 87m IAP shares so they will get $165m plus $4m for March distribution and lets say $20m for the 50% of PMG (if we sell it). So i get roughly how you have the $200m war chest. But the next step is if they take up the option TOT will use that $200m cash plus a small debt facility (could be $50m+) and buy the 3 properties for $254m.

So the way i see it and using your $200m war chest number, they will end up with either ;

1. $200m cash, no debt.
2 $180m cash, retain 50% of PMG and no debt.
3. $250m worth of NZ Property and $50m debt
4. $250m worth of NZ property, 50% of PMG and approx $70m debt.

Personally i like number 2.

The numbers above are not exact (very ballpark) as we are talking A$'s and NZ $'s. I am just using Rubs numbers so do your own calcs to get exact when the financials are released on the 24/2/22. What is obvious is that TOT are worth more than 95c share.


cheers