The 13.3% discount to the June 2016 is very disappointing given the portfolio values were dropped in June 16. The problem is the forced sale nature of this exercise, a buyer picking up the portfolio at US$211.8m (13.3% disc to June 16 portfolio valuation of US$243.3m) would be getting an approximate gross and net yield of 19.5% and 8.4% respectively (based on half year gross and net revenue of US$20.7m and US$8.9m).
If shareholders had to sell the properties at this price, I would rather management raise equity to paydown debt and reinstate the dividend. There are a few institutional investors who have been holding on to this for a few years who could potentially support a rights issue.
RNY Price at posting:
4.0¢ Sentiment: None Disclosure: Held
