yet another new aja poster with a view..., page-5

Quote from morley's post:

"But at about 72% gearing, they only need another 8% move in valuations for this to trigger the 80% debt covenant."

There is no 80% debt covenant. No loans can be called until they fall due. ( there was one that could but that was renegotiated recently, I believe - working from memory.)

It is a prety good deal, due no doubt to pretty good. rental returns that cover the interest repayments twice over or more. AJA had no trouble to refinance two of their loans this year on same terms, although at touch higher interest. I believe the average interest on all loans combined is under 2%.

Also, most leases are long term leases with fixed rents with quality tenants that comfortably cover the repayments, interest, runing cost and leave some for distribution, mainly because the Japanese interest rates are very low.

Sorry that I am not quoting the actual figures. I am bit tired after watching footbal last night and could not muster enough entusiasm to look them all up, but it is all there if you read company announcements and previous posts.

Nothing horenderous. Main risk would be if any of the lesees went bust and could not countinue with the lease, but as long as they are solvent, they are locked in.