NEW management will be the first to admit that the financial reports are dense and obtuse to say the least. This is a byproduct of the complex corporate structure (companies, trusts, stapled securities etc) in Australia and the US (presumably set up to optimise (minimise) tax.
I spoke to the CEO earlier this year when he was presenting the 2019 results to shareholders. He was also frustrated by the fact that the complex structure and reported financial results (such as the reported loss) bears little relationship to the underlying fundamentals of the business, which he believes are very sound. The main reason they are trying to sell a stake in the assets is to get an independent quantification the value of the assets, with the aim of boosting the share price on the ASX to better reflect the NTA. It is not because the business's finances need need the cash.
The distributions that NEW is paying are consistent with its original prospectus/business plan, and based on a percentage of NTA, not a percentage of ASX market capitlisation. NEW's 2019 distribution was 7.9 cents per stapled security - 7.9% return on current $1.00 ASX share price, and a fantastic return in the current environment. So you can look at it as high-yield investment, or as an undervalued stock with 50% captital growth potential, or some combination of the two.
If you haven't already, well worth a look at the 2019 results presentation:
https://webcasting.boardroom.media/broadcast/5e434649f9e971767d253a2aProbably the best way to track the intrinsic performance of the business is the weekly NTA reports.
