Even if they halved their proposed distribution it would still be a 13.7% yield on 70 cents.
I still think that everything is OK and the distribution forecast from last month will still apply. It was made quite clear at the last presentation that the distribution is to be paid out of rent received on properties owned and management fees from their various funds. There is no part of the distribution from development activities which reduces the risk on a reduction of the distribution significantly.
GMG has over $1 billion in undrawn facilities which is more than enough to cover their entitlement to the IOF entitlement.
Fear is providing a great opportunity.
I have been making money for the past couple of months on stupid funds selling out on irrational thinking and then enjoying good bounces such as AIO, GMG (after re cap), NUF, TSE.
This will be no different !
GMG Price at posting:
64.5¢ Sentiment: Buy Disclosure: Held
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