"If they want the $50m (or $100m) they could reduce the...

"If they want the $50m (or $100m) they could reduce the distribution further or do a Capital Raising. The asset would go up in value so I'd be happy either way."

At the current level of 23cp (assuming an annualisation of the FY2021 interim dividend), that equates to around $16m of annual distributions, meaning that if they wanted to effectively raise capital by reducing the distribution, it would require cancelling of the distributions for a full 3 years (to merely conserve ~$50m, the lower figure you quoted.)

As for the merit of a capital raising, (you say you'd be happy because the asset would go up in value anyway), how does the fundamental value of an asset increase when the equity capital being raised gets deployed at a rate of return which is lower than the cost of that equity?


"I'm happy to wait but if you think CDP is such a crappy prospect why don't you sell?"

It an insignificant position for me.
Besides, like I said; I am not in a position to sell it myself [*], otherwise I would already have done so some time ago, because I clearly don't believe CDP presents a good long-term investment proposition.


[*] I have carved out a sliver of my family's capital to a younger family member to manage; for the past few years he had been learning about finance and valuation and last year he stepped up to learn about portfolio management. He owns CDP and I don't care to influence him because the investment returns he generates need to be of his own doing.

.