With the Sale of 5 Eden park - AOF looks to be undervalued by...

With the Sale of 5 Eden park - AOF looks to be undervalued by the market.
Using the Aug-22 presentation as a starting point...
$554M Assets, $182M borrowings = $371.5M net assets, $2.26 per share (based on 164.5M shares on issue).

Fast foward to Feb-23.... $221M of assets sales. my estimate is $340M of property, $40M cash... would still be c. $2.26 per share NTA.
But the kicker is you have reduced gearing to 0, and as per the company accounement they are in a position to pay a return of capital to SH.
They haven't specified the amount, but I'd assume capacity for $80 - $120M, (would leave $40 - 80M of Debt, very comfortable against the assets, very low gearing).

So taking $80M capital return. 50c special dividend. Leaves you with $340M property, 40M debt = $300M net, or $1.81 NTA.
Meanwhile the theoretical Ex div price would be $1.20 ($1.70 - 50c). So significant 34% discount to NTA. With further sales in the pipeline.

Of the remaining assets, I am comfortable with Beenleight (new build, long WALE)< and the ACT asset (given low $/m2, and I like the Canberra market overall). On the others I am mixed. Parramatta already taken a massive haircut, so valuation probably conservative.

Brisbane and St Kilda rd... possibly OK, but low NABERs and valuation doesn't look super cheap, maybe some valuation falls for a sale on these.