I think there is a consensus sell on IIF as of yesterday.
I question the view of the brokers and funds who have driven IIF close to extinction. They are foolish for not seeing that this is a temporary problem, and does not warrant the destruction of IIF through an asset firesale.
Yes, IIF is close to covenant breach, but so is every other REIT. Is the solution to bankrupt every commercial property company? lol.
The funds should never have sold this down like this! They have prevented IIF from tapping the market for even a mere 100m to keep it out of breach. But the fund managers know better, don't they? That must be why they alone are allowed to short stocks!
Amazing that all of this so-called panic selling has been perpetrated by banks and funds over the last few months. The pillars of the financial system!.
We can only hope the banks are not pressuring IIF for a huge private placement of debt swap at these levels.
I think IIF will likely breach covenants in a few months, as will every other REIT. IIF are going to try to sell assets and focus on Aus, but IMO they should only sell the bare minimum.
A better course of action would be to focus on finding a banking partner who is not going to hold a gun to their heads during this global multi-year crisis, as covenants will remain under pressure.
But I don't know if a bank exists that does not rapaciously live by the gun?
IIF Price at posting:
5.9¢ Sentiment: LT Buy Disclosure: Held
