Ann: Small Security holding Sale Facility, page-7

Interesting that you've topped up Tinwins.

I've certainly considered it too because of the massive NTA gap but haven't been brave enough to pull the trigger yet.

I get the sense most of us on this forum are value investors at heart and can't help but get interested in a sector that's been one of the worst performing on the market alongside retail to try and pick out a few bargains.

We're basically in the perfect storm being in an out of favour sector (REITS) while holding the most out of favour asset class (office buildings) and being a tiny size whereby the funds outside the ASX200 have been hit significantly harder than those inside it (if you guys have access to Bell Direct then have a read of their recent deep dive into the REIT sector as it was very informative. If not I'm happy to email it out).

Regarding Joe Wolfs question as to whether TGP or TOT I think they both offer a level of value but the next 12 months will probably look very different for each company.

TGP has far more options with no debt, a higher market cap (although still small by overall REIT standards just bigger than TOT) and enough cash to have a very significant buyback in place at the moment. They've also got more diversity in income sources with a big stake in HPI (a hotel landlord) plus the recently enlarged TOT stake (plus management fees from this vehicle) and some financing activities also starting to happen.

In comparison TOT has a larger discount which I believe in my opinion is due to them having less options in the short term. Their looking at one more significant asset write down which may see the property portfolio down around the 200 million dollar mark (a further 11 percent drop).

With 84 million in debt outstanding (none of which is hedged) this takes us up to a pretty tight gearing of 42 percent (still comfortably within the 50 percent covenant), There is also the question of what a sustainable dividend looks like going forward which I hope to model out in the next couple of days.

But in a nutshell I think that's the trade off! TOT is probably better from a pure deep value and yield perspective but has more question marks around it and not a lot of financial flexibility at a time when that would have been perfect to have in real estate.

I suppose it's a lesson to all of us in spending your cash at the wrong time.