APW 0.00% $1.52 aims property securities fund

Largest discount to NTA ever - Only one sensible action

  1. 1,204 Posts.
    lightbulb Created with Sketch. 77
    The problem with this stock there are a lot of unknowns. We own the majority of the following investments but don't receive the financials for these investments-
    https://hotcopper.com.au/data/attachments/1779/1779190-cc3dd785097f9e404ba0e1ba78ae140d.jpg
    We should be able to have access to them.

    If I was not a cynic Id say management are doing a brilliant job.
    On 1/12/16 the funds constitution removed any payment of management fees, performance fees or other remuneration to AIMS Fund management ltd- Brilliant.
    The NTA has increased from $59.5M in 13 to $114.6M in 19.
    The NTA has increased from $2.09/share in 2017 (share price was $1.50 - discount to nta of 28%) to $2.57/share in 2 years, yet we are facing the biggest discount to NTA ever of 44%.

    The problem is there is not enough transparency. Many people believe the assets are not worth what the books show and that management are not doing the right thing by shareholders.

    If the valuations are correct there is only one right thing for management to do. An asset should be sold such as the Laverton industrial asset (there has been reports of buyers interest) and the money should be 100% used to do an off market buyback to buy the shares at a 20% discount to NTA.
    The buy back would be fully subscribed for as the price would be $2.06 and the company would be buying an asset with an instant 20% uplift.

    There is no better way for the company to spend money where it could get an instant 20% uplift and shareholders would be over the moon.

    The only reason this action would not be the best move by management is if the valuations were inflated.

    We have just invested $6.5M in the AIMS real estate opportunity fund. Surely we could have used this money first to aggressively buy back shares from a discount of 44% to NTA all the way to a 20% or 15% discount? This is the easiest way to boost the value of our investment and the share price.

    This should be the number one action to benefit all shareholders,including management who are major shareholders.

    @friendlydwarves - You constantly warned shareholders of sbb who never had the assets they claimed to have, yet you have been a buyer of this in the past- what are your thoughts re the value of APW and the best course of action?



 
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