I think you forget that many leases will adjust to market rates as they are renewed. Industrial rents have been appreciating at a greater rate than CPI or 3% in some cases. This should counter increases in borrowing costs and at least maintain current dividends now nudging 7% and tax advantaged.
If interest rates are approaching their peak and may even fall in 12 months time then I think the model put forward although interesting is a little simplistic.
The recent sales at book value show to some degree the integrity of the valuation of the portfolio which is around $3.20 per share so the current trading price around $2.40 p.s. makes for excellent buying.
I think you forget that many leases will adjust to market rates...
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Last
$2.94 |
Change
-0.070(2.33%) |
Mkt cap ! $932.7M | |||
| Open | High | Low | Value | Volume |
| $2.99 | $3.03 | $2.94 | $1.188M | 399.8K |
Buyers (Bids)
| No. | Vol. | Price($) |
|---|---|---|
| 2 | 4804 | $2.93 |
Sellers (Offers)
| Price($) | Vol. | No. |
|---|---|---|
| $2.96 | 1804 | 1 |
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