Guys...BBC like others in the property arena will have a shocker in FY09.
Sure, retirement assets won't suffer the property devaluation of the general and commercial marketplace but BBC has been pretty rich with their property revaluations in the past...so what has been ramped up will also come back quicker.
Here's proof: In 07/08 BBC had a NP of $41m....but that included revenue from property revaluations of $71.8m! EPS was 6.66c
The BBC asset portfolio is valued @ $1,788m @ 30/6/08. I've heard industry sources claim that write-offs of 30% are on the cards...that means a potential write-off of up to $536m!
Personally if I was CEO I wouldn't be recommending a div because it will have to be borrowed in any event.
That said, I've now got a reasonable stake in BBC because at my accumulation price I am well under the NTA (even adjusting for the write-offs) and I think LLC will give it the forward momentum it needs...particularly the development of the future pipeline in an area that is and will be in HUGE demand.
BBC will emerge as the dominant player in the industry along with FKP which is now backed by Stockland.
Conclusion: Think longer term with this one and you will be rewarded.
BBC Price at posting:
17.0¢ Sentiment: Hold Disclosure: Held
