I think EHE should spin off a long wale REIT, with majority...

I think EHE should spin off a long wale REIT, with majority control retained, to do the developments. Most of EHE's properties would be freehold i imagine. Crown was similarly sold off heaps, but recovered due to spinoff of a REIT. all property trusts are valuable.

EHE forecast EBITDA of approx 105mil. Lease expense say around 25mil which will go to the REIT , leaving EHE profit of 32 million.

Keep a long wale of approx 15 years, like viva energy.

Transfer some debt across to the REIT.

Assume 22 mil net rental, the REIT @ 6% yield would be worth approx 350million.

Estia at profit of 32million would be worth x 12 p/e = $375 million, plus 51% control of the reit. EHE debt will also be lower.

this will also fix any capital concerns easily , and EHE head stock will trade much better as it owns 51% in its own REIT.