I would see MDT as similar, but not really comparable to BEC. Compare MDT to CER,
MDT vs BEC Property Trust ; Developer and Trust Manager and Trust USA ; Aus Retail Commercial; Residential and retirement (other commercial via trust exposure) Lumpy to sell properties ; lots of units to sell Selling prices at 30% below peak; selling prices of units at 10% below peak (maybe at 0% below peak really), sites at 10% below peak too (write-offs from development expenditures as far as I am aware) severe recession ; downturn - maybe no recession Managed by third party ; self managed Usually sell at a bit under book value; usually sell at 2 times book value Property surplus ; Property shortage Desperate desire to maintaining higher book values ; possible perverse advantage to having more write offs, to create good projections from next FY report onwards Need to refi ; can let trusts go to the dogs if totally necessary without being wound up US CMBS finance ; Aus bank and Aus non securitised finance Few options to raise cash (Sell or cap raise or refi) ; many options to raise cash (also sell management rights, partner / JV in management rights, sell units, turn sites into government social housing - bankable for finance
There are a lot of differences. BEC is strategically in a totally different ballpark to MDT.
Good luck to all holders and sellers of BEC. BEC did pretty well post that announcement - I doubt it'll go down much from here.
BEC Price at posting:
$25.00 Sentiment: LT Buy Disclosure: Held
