nta may be understated

I've mentioned before a concern that far from the opportunitic bidder's speculation that asset values could fall or be 10% lower, there is a real chance that current NTA understates current asset values. Meaning this bid could be more like 50% below NTA. The independent directors should themselves commission external valuations of assets and not rely on conflicted management to do so.

I've seen several market commentators talk about a sharp re-bound in US property values, the latest in the last few days is below. Athough it's talking about US REITS. Its interesting and difficult to see that EDT's property values have been revalued upwards to account for the recovery being "valuations up 40% up from their market lows" !!

" Property values bounding up in the U.S: According to Green Street Advisors, market fundamentals have turned positive in every property sector in the U.S., and real estate investment trust (REIT) values are currently at the high end of a fair range. Property values are enjoying a robust recovery, with valuations up 40% from the market low and now remain 15% off the market peak. The stimulus-fueled economic forecast and job growth are considered to be the demand drivers. The supply of new apartments is growing fastest among all industry sectors, followed by strip centers and industrial properties. Retail REITs, especially those that own strip centers, offer the most attractive valuations in the current market. However, office REITs remain costly"

The "opening" bid is daylight robbery and their argument that this is fair is not supportable.

I made a comment on an earlier post that its misleading for the bidder to choose two office reits and then average their discount to NTA, to justify the offer terms as being reasonable. Retail is a different asset class with a lower risk profile. One of the office REIT's is distressed and so trades at a massive discount to NTA and this REIT is close to 1/10th the size of the larger one. The larger one trades at a moderate discount to NTA. If they used a weighted average based on asset value/market cap. or had they discounted using the distressed REIT as a comparable, this would mean a 28% discount to historic (not current) NTA is not supported and they'd need to increase the offer.

lets see (hold) if the hedge funds also see the value and have a cunning plan to unlock it