This is not an unqualified good.
A manufacturer needs land and buildings to operate from. If owned, it has a dull asset on the balance sheet that can be borrowed against; if leased, it has a long term liability and certain cash outflow. Which is more attractive?
The Richlands Qld facility sale is ahead of a move to better premises. The Takanini NZ sale includes a 12 year lease back, so MXI is staying put.
Still, with a 5.3% gross yield (who pays outgoings, rent rises not revealed) MXI has cut a reasonable deal for an industrial property.
IMXI may simply be lining up its ducks ahead of the refinance of its $60m debt. $16m off that, even with an unused M&A tranche available, makes refinancing a lot easier and cheaper.
I suspect MXI is considering other merger opportunities, most likely in the truck parts sector as it builds out its national network.
Ash
Ann: MXI - Capital Allocation Update - Auckland Sale & Leaseback, page-2
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Last
$1.92 |
Change
0.020(1.05%) |
Mkt cap ! $106.2M | |||
| Open | High | Low | Value | Volume |
| $1.91 | $1.92 | $1.91 | $23.92K | 12.48K |
Buyers (Bids)
| No. | Vol. | Price($) |
|---|---|---|
| 1 | 681 | $1.91 |
Sellers (Offers)
| Price($) | Vol. | No. |
|---|---|---|
| $1.92 | 9209 | 1 |
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| Last trade - 16.10pm 31/01/2025 (20 minute delay) ? |
| MXI (ASX) Chart |