A few thoughts on EDT's results and financial position
-Core earnings 0.88c/unit - Ok at 16% of SP (or 8% NTA) -Gearing 65.6% - High by today's standards but all non-recourse -Weighted av debt maturity 2.7 years -Weighted avg lease expiry 5.1 years -Occupancy (excl Big Box )88.5% -Cap rate (excl Big Box) 8.6%
Where we go from here depends on the US economy but with scope to improve occupancy and a cap rate which has room to fall I would hope that there is some upside to come.
Walking away from Big Box will help - although with low occupancy and such high cap rates I thought the only direction was up!
Exchange rate changes will play their part in affecting our A$ position. Plenty of talk about the US $ being at risk of a fall, but then so is the A$ if China stumbles. It's still a gamble.
Lack of distributions is a problem - and from my calculations will only improve gearing by about 2-3% in any case. The real improvements will come from increased occupancy and/or improving cap rates. Will we get these - I don't know. For every person who quotes US improvement stats (as EDT does) there are several others who are still talking "double dip".
I will be just holding on tight!
EDT Price at posting:
5.6¢ Sentiment: Hold Disclosure: Held
