- Cap rates are low vs term deposits yields, government bonds...

- Cap rates are low vs term deposits yields, government bonds etc
- Cost of debt has tripled and not improving on a look through basis
- Reduction in distribution
- Reduction in NTA

But lets not forget, this has been smashed over the past 18 months. Down from $5.40 in April '22 when NTA was $6.17 ie a 12.5% discount to NTA. Today, trading at $3.28 vs NTA of $5.63 or a 42.5% discount to NTA. In my view the above headwinds are more than priced in at these levels

The kicker is that the 2 properties that CLW sold in the last year were sold AT BOOK VALUE. CLW will almost certainly look to sell quite a few more properties in 23/24 and get their gearing back to the 30% historical levels. Based on the discount to NTA anything sold at any amount even close to NTA is would be an exceptional result but in reality anything sold for anything above a 42.5% discount to book, although unpalatable and highly unlikely CLW would agree to, would in essence still be a win for CLW.

I'm holding at a $3.68 average. The position occupies only 3% of my portfolio so not particularly bothered by the day to day fluctuations and i'm not emotionally invested either way. I'm happy to keep holding long and keep collecting the distribution for now.