Ann: Financial information as at March 31, 2020, page-162

Interesting to see a discussion about dividends and the tax leakage related to them.

In normal times, for property companies, the dividend (after-tax) is traditionally an important determinant of valuation.

However, the current time is clearly not normal, and I think that the conjecture around however the dividend lands is a bit of a distraction from the real valuation issue, namely the steep discount to NTA.

As some posters have pointed out, at a P/B of around 0.2x, the company is being priced for an extreme impairment of the value of its assets.

So, it's not a yield story right now; rather its a discount-to-NTA story.
The yield is a side show.

My thoughts on the stock have changed in recent weeks. I initially thought that it was cum- a capital raising (I still think there is a 50% chance of it happening), which would be an overhang over the stock price for some time.

But then I reminded myself that, as a value investor, trying to time these kinds of things with a degree of finesse is a fool's errand, so I have been buying the stock this week, and will continue to do so today.

Thanks for the heads-up to those who have been posting their thoughts on the valuation.

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