From a larger piece in today's AFR on the woes of the Duxton group are these relevant gems:
Duxton, the asset management house founded by prominent South Australian businessman Ed Peter, has stopped investors from withdrawing money from its unlisted agricultural fund amid a strain on the finances of several of its portfolio of companies.
Duxton Diversified Agricultural Fund said it would sell its stake in another of its portfolio companies – the ASX-listed Duxton Water – and use that money to pay its investors 10 per cent of the money they had put into the vehicle. It will then consider its options, and whether it should sell properties or try to find a new cornerstone investor.
Duxton Water has a market capitalisation of $222 million after an 11 per cent fall in shares this year. Its investors include the Oatley family and Regal.
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D20's latest Monthly Update for August says 40% of its water rights are leased, so 60% are not generating revenue. Ouch!
Tinyteddy's observation above "However, when the next drought comes (and it will come) this will fly up regardless of management" is true, yet there must be considerable doubt this vehicle will still be intact when that moment arrives.
To be simultaneously conducting a dividend reinvestment plan AND a share buy-back is bizarre.
D20 will spit off shareholder value until somebody puts it out of its misery.
Ash
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