Agree psi81.Good to see 3 year high - group now has low gearing...

Agree psi81.

Good to see 3 year high - group now has low gearing and a potential 9c per unit to come in asset sales (shame about high AUD)

Taken from the II Funds Management Quarterly Report (they have good access to management):

"ILF makes something out of nothing

Just before Christmas ING Real Estate Community
Living Group (ILF) announced that it would be
writing up the value of its US assets by $0.07
per unit in its 31 December accounts. Normally,
changes in accountants’ estimates of asset values
are meaningless—investors should be focused on
cashflow and their own valuation of those assets.
But the ILF announcement provides useful data.
These US assets are up for sale and the new
valuations are reflective of a number of indicative
bids received by ILF. Due to the large amount of non
recourse debt against these assets, the net value
on ILF’s balance sheet was only $0.02 per security
(versus $0.26 of total net tangible assets). The
revaluation means the board is expecting at least
$0.09 per security from the sale of these assets.
For comparison, the unit price at 31 December
was just $0.16.
The proceeds probably won’t be returned to unitholders.
CEO Simon Owen, who we hold in high regard,
has a number of sensible incremental investment
opportunities that will utilise most of the capital
released from the US.
Progress is also being made on an internalisation
of ILF’s management and a potential solution is
expected to be put to unitholders soon. With a bit
of luck, by the time June comes around ILF will be
paying regular distributions, have its own wellregarded
management team, own a portfolio of
quality Australian retirement assets and a pipeline of
attractive future investment opportunities."