Interesting to look at Pages 38 and 39 of the Offer book. This lists their properties with values, cap rates etc.
Take a look at their "Single Box" which at a value of US$166m is 11% of their portfolio. These are the ex-Mervyns properties and have only a 17% leased rate. They are valued using a capitalisation rate of 13% !
This is obviously not a good situation but has huge upside both in terms of possible extra income and also capital gain if cap rates improve.
But obviously the risk is very high. Could be an interesting ride if the US really picks up.
The sensitivity to exchange rate (p49) is also interesting. NTA of 10.5c seems to be based on a rate of US0.91 - if it goes to 0.89 the NTA rises to 10.7c. A US rate of $0.80 starts to look interesting!
Alf
MDT Price at posting:
5.5¢ Sentiment: Hold Disclosure: Held
