The way I see it, this investment story is really about RNY improving their occupancy rate.
They've been treading water for the past couple of years, and to their credit they haven't tapped the markets for additional capital like just about every other listed property company. But, they are still struggling under the weight of debt with gearing levels still >60% at end of FY13.
Despite high gearing levels and terrible occupancy rates, RNY was still able to generate FY13 distributable earnings of $6.7m on a current market cap of $84m (plus a truck load of debt). If RNY can get occupancy rates up (say over 90%), they'll be able to start making significant reductions to the gearing level.
