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1.41%

35.0¢ us masters residential property fund

Borrowing to fund dividend payments . . .Wow, that's some...

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Loxodonta

17 Posts.

2

11/02/22

11:54

Post #: 59507714
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Originally posted by evansc6: ↑

If the properties go up in value, and they are revalued by a 3rd party and this is realised through the P&L, then they would have grounds to pay a dividend, even though they have negative operating cashflow.
That said they'd need to borrow the funds from a lender against the higher property value's - and by the looks of things they're in a long-term fixed 4% loan which they can't break. This would require them to borrow at mezzanine rates, which almost defeats the purpose.
The stock is much like Australian Negatively Geared property owned by individuals, they're making a cash loss (e.g. no divi's) but hope to recover this and some via leveraging capital gains; because property always goes up right?

I hold URFPA's only.

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Borrowing to fund dividend payments . . .
Wow, that's some strategy.

URF Price at posting: 28.5¢ Sentiment: Buy Disclosure: Held
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(20min delay)
Last 35.0¢		Change -0.005(1.41%)		Mkt cap ! $247.0M

Open	High	Low	Value	Volume
34.5¢	35.5¢	34.5¢	$74.77K	210.7K

Buyers (Bids)

No.	Vol.	Price($)
2	39250	35.0¢

Sellers (Offers)

Price($)	Vol.	No.
35.5¢	387357	5

View Market Depth

No.	Vol.	Price($)
2	39250	0.350
2	112504	0.345
3	255313	0.340
1	100000	0.335
3	140600	0.330

Price($)	Vol.	No.
0.355	387357	5
0.360	379970	5
0.365	205000	3
0.380	28888	1
0.385	84000	2

Last trade - 15.31pm 07/10/2024 (20 minute delay)

URF (ASX) Chart