Well, that, was, needless to say, painful.And I do hope the...

Well, that, was, needless to say, painful.

And I do hope the settlement of CJF4 transaction occurred as planned on the 5th (e.g. there was no some get out clause). I guess an announcement is due on Monday?

However, I just thought it is important to remind myself about extremely fortunate timing with refinancing/closure of all 3 major facilities recently. If all comes through as planned, MIX should have two loans with no maturities for almost 5 years. I think Mirvac facility could be repaid soon from cash flows. This leaves small, clean REIT with a massive discount to NTA and exposure to purely USA commercial Real Estate.

Based on valuations so far, NTA should be at least 15c when the next report comes out. Interest coverage is very safe in other words business is strongly cash flow positive. It would not surprise me at all if MIX reinstated dividend in not too distant future.

Now, on US economy. As I said before, QE3 in my opinion will be hugely positive for real estate, given US dollars are being devalued, investors will look instead of cash at tangible safe assets like RE. All events of last week make QE3 a much more likely possibility IMO.

I think all the truly bad news that US could have had are out already capping it with losing the AAA rating. The latest job report was good and with any luck recession will be avoided and if not it will be short and shallow. Corporations are loaded with cash and made more money than forecast. My bigger worries rest with a possible slow down in China and Europe as the whole Euro currency experiment will have to unfold one way or another.

For MIX the only real danger that I can see now is another massive US recession and a fall in RE prices in which case our high gearing is not comfortable. As mentioned before, should RE prices continue to appreciate, the same high gearing is extremely favorable for NTA.

Personally I think ST the market has still some falling to do as bottoms are rarely coincident with vicious days like Friday. I think it will drift down with volatile swings up and down for some time. Everybody has their own view and situation and should of course make up their mind based on their circumstances. As for me, I will hold and wait for the next annual report which should be out this month.

Cheers

MLC