URF September 2020

Speaking about URF, it is all doom and gloom. It has been so for quite some time. Mr AC Dixon and Walsh & Co used URF to fleece Dixon advisory clients of their hard-earned funds. They were bald-faced in their rapacity. All of this will be public knowledge shortly. https://www.copyright link/companies/financial-services/asic-takes-civil-action-against-dixon-advisory-20200904-p55scc

My post today is to look for the bright side. I think there is one. Some posters here see URF equity being restructured and the equity reduced to zero. I think this is unduly pessimistic.

These are my reasons.

1. Brian Disler and Kevin McEvey are in charge. They are bringing a sea of transparency to the dark and opaque world of the previous CEO.

2. Funds from Operations have improved nearly 50% from the PCP. Cashflow positive in 2021

3. Sales activity is continuing with 12M realised in the last quarter in COVID conditions. And a further 28M under contract

4. 11.3M paid off in bank debt in the quarter.

5. Wells Fargo interest rate reduced to 1.9%

6. 29% reduction in SG&A

7. 98% rental paid in the half year to June. No evictions. Problems resolved locally

8. July saw renewed leasing activity.

9. All this done …WORKING FROM HOME