It is amazing how consistently wrong REIT analysts are...

It is amazing how consistently wrong REIT analysts are about………GMG.
One analyst thunders :” there are cracks everywhere in this (GMG) business”
Another is trying to categorise the MQG and CIC facility as “Lender of Last Resort”
Yet another sees GMG going down the plug-hole FAST, he is waiting for the last gurgle.
These analysts remind me of the metaphor of the rabbits frozen in front of the glare of headlights.
This is the deadening effect of DEBT on analysts. Once debt is mentioned in today’s environment the analysts run for the hills in fear of the TSUNAMI. All the analysts are huddled on the hill watching debt engulf GMG.
Everybody that is anybody is rushing off to the altar of refinancing and renewing their marriage vows to never have another dalliance with debt. The bankers, instos, investors and brokers are witnessing the vows.And making a GOOD BUCK.
Anymore who refuses to along with this new ‘correctness’ is to be treated as a LEPER. And so it is the media today; all except for one insightful commentator, page 56, right hand column, Robert Harley. And more about that later.
Investing and business 101 says ; never travel the well trodden road. Always seek the road less travelled.
GMG has endeavoured to play ball with the banks. And the banks were going to refinance GMG, but on the condition that they raised the coupon interest rate on ALL GMG debt by 400 bps.
GMG said thank you but no thanks.
Instead GMG relooked at a long cherished company objective. That objective was to secure and strengthen its China foothold.
It is something that RIO was trying to do, and had to withdraw.
Initially GMG is not betting the farm, the CIC part of the facility is $200M. This shows that GMG-CIC-MQG are serious about the viability of the business of commercial property. There is some 9 months for this association to LEAVE THE WOMB and enjoy the light of day.
Meanwhile GMG are looking towards firming up its balance sheet with a LONG AWAITED EQUITY RAISING. This raising will feature MQG, and CIC if not the Canada Pension Fund (currently busy mopping up MCG)
And now quoting from Robert Harley, “Goodman is not retreating to become a vanilla domestic trust’, something our REIT analysts want.
The GFC will end someday.
Meanwhile for GMG the road ahead:
(1) Survival
(2) Establish a “BRIDGE TO EQUITY”
(3) Rights issue
(4) The GFC recedes and the new dawn of an international player in logistics and property funds development and management arises

GMG ……………….keep the faith