**just revisting an older discussion on the Notes vs. URFPA...

**just revisting an older discussion on the Notes vs. URFPA buyback** have had difficulty posting to the forum due to my non-chrome browser
es, but the 6.5% coupon is based on a $100 face value. The market value of preference shares is $50. Therefore, if they can be bought back on market at these prices, they are effectively generating a 12.5% yield (same as investors who purchase URFPA at these rates). But then the company can just cancel the shares, and avoid future distributions (incl the Jun distribution). It is strange that they still permit a DRP (whcih should be suspended while the trade at such prices, and therefore effective yield). Unless there is some ruling or constitutional provision that prevents URF doing this for preference shares? (Which would surprise me as ordinary share buybacks are very common).

But as to the availability of cash - I thought there was something like $40 - $50m in cash as at the last quartly update (or April update). Which would make a fair dint in the $100M of URFPA on issue (@ current market price).

As others have commented before, managements plan to use 7.75% debt to purchase properties yielding 2-3% net. Net result - even at 50% gearing (+ mgmt fees) they burn cash. Genius!!!