Hi. What is interesting about IEF is that they have somehow...

Hi.

What is interesting about IEF is that they have somehow booked another large loss for the half. Realistically at this moment this is a property trust where the only beneficiaries are the banks who lend to them ( getting 8.6% interest on their secure loans) and ING who rip out a good 1% of net assets management fee plus expenses ( $381k for half year - refer page 5 half yearly report).

There is hope for the punters yet. Check out the prices that LEP have been getting selling their pub portfolio for, particularly their sub $10 million pubs - yields below 6% and even one pub where the purchaser will only get a 4.4% yield. Mind you LEP has WOW as a major tenant, not Icon.

LEP has been cleverly offloading pubs at very good prices, what does IEF do in the last six months - not sell one pub!! IEF has a LVR of 70%!!

You may want to have a look at the conditions of the convertible notes before you stump your money. The convertible notes are $20 million versus current market cap of not more than $30 million.

Underperforming greedy external management has destroyed what should have been a solid investment.

Sold out over a year ago and never came back.