Suggest you all read closely the cap rate assumptions and page 14 of the report..which shows a sensitivity analysis. Bottom line is their nta of 83 cents is still based on June 30 2008 valuations. They even go as far as to say in the report that valuations since that time have most likely declined.
On my estimate all this raising does is put them back to a 45% gearing on present time valuations.
Quite clearly they have done this just to keep them out of breach of covenant.
Let me tell you now, that what they have provided is still very transparent. If this is the situation with these guys then there are many others well and truely in the red. Dont belive their (other LPTS) stated gearing ratios for one minute.
MOF Price at posting:
20.5¢ Sentiment: None Disclosure: Held
