article in bus spec, page-7

IR reduction = Asset price increase

Im hoping they sell minimal anything - its not the best time to sell your hotel when its business is depressed - thats stupid unless you need to.

I was comforted by the minimum drop in asset prices at recent revaluation - Im hoping the next move might be a revaluation upwards... or at least flat... that being the case there is still no need to sell in my view.

Fin review today seemed to think that at least a 6% devaluation in asset price was inevitable... and that it would trigger a lookthrough LVR covenant... - How much was that debt facility for? I dont recall... but nonetheless, they still have 6% after this recent revaluation - not sure when the next one is due... presumably end of year...

Anyway.. we're buying assets - anyone owning assets wants them to yield returns - and sell them when there is a compelling case to do so.

I like it that they fired 60 finance people in Europe... maybe fire another 100 here and there. Fix the management and the costs - dont throw out quality assets because you've done a sh!t job!

A passive REIT built on collecting rents should largely run itself shouldnt it? - or at least needs minimal human interference. its only when you do the complicated shenanigans like the BNB JV that you really need to hire lots of expensive people to dip into our profits - at least thats my view.