Did AOF fully think this proposal through? Sue, AOF was trading a discount to NTA back in Feb when the strategic review was announced, but so were all office REITS: investors were doubtful that things would go back to normal for office workers after the threat of covid-19 abates. AOF's discount was of the same magnitude as other office REITs. Thus, arguably, there was nothing fundamentally "wrong" with the fund. Then, the fund has a run at closing down the discount, like other office REITS; the announcement of the strategic review is made and AOF's share price takes a material hit.
Once can't help but wonder if the outcome of AOF's strategic review was more about Australian Unity doing what they can to hang-on to the management rights of their funds than it was about maximizing shareholder value. Their recent business agreement with Dexus suggests that they may have these sorts of considerations at the front of their mind.
AOF Price at posting:
$2.35 Sentiment: None Disclosure: Not Held
A personalised tool to help users track selected stocks. Delivering real-time notifications on price updates, announcements, and performance stats on each to help make informed investment decisions.
(20min delay)