Personally I will be very interested in the June year end property valuations.
Personally I think the valuers will increase the cap rate to reflect increased risk, increased cap rates will obviously negatively impact on NTA. The question is how much will those cap rates rise?
Against this we have a large buffer between share price and NTA, so cap rates can increase quite significantly before NTA trades below current share price.
The other issue is debt, HCW debt is low at 32% odd, but UHF gearing is higher at 40%. That 40% gearing might get a bit uncomforable if Cap rates rise significantly and UHF might need to raise capital, if they do, then HCW will also need to raise capital given HCW owns 49% of UHF.
This is probably what's further jittering the share price.
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