macro is retirement homes, page-5

ASF you may be right re. PBD. But although PBD's share price has collapsed, from my reading of FKPs annual report they only value their holding at 22.8 million. If FKPs fall is in response to PDFs fall than a massive overreaction on worst case scenario of total write off. (in any case PDF only has net debt of 41 million and has paid of 61 milllion over past year. Remaining assets could be sold in fire sale and still easily pay of remaining debt).

FKP are trading at steep discount to NTA around $1.20. 62% of income is recurring and recently FKP reaffirmed FY guidance for underlying profit increase of 10-15%. I think there is some risk with total bank loans/borrowings of around $800 million, but (1) repaid approximatley $300 million last year (2)excluding equity raising generated around $70 milliion free cash flow after interest payments last year (3)high recurring income (4)AMP and IOOF have been big buyers recently at higher pricces