I think what is important is that for every property sold at less than book then the NTA is reduced.
IE 5 x $1 Mil properties each LVR 60%
therefore 3 mil loan
$5-$3 =$2equity
lets say 2mil shares on issue (for ease)
Simply NTA $1.00
Sell one property at $800k then
Asset = $4mil (no revals)
Loan = $2.2Mil
4-2.2=1.8
NTA = 90c
Further more if asset sold at less than LVR ie @ $550K
then LVR will always increase
Asset = 4mil
Loan = 2.45mil
LVR = 61.25%
NTA = 77.5c
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I think what is important is that for every property sold at...
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