19/9/22

I've decided that in my RL portfolio that I'm going to take the cash for the units I currently hold. I think there's too much that can go wrong if I take the unlisted units.

I'm not confident that the asset values will hold up. The unlisted fund will be highly levered so any decreases in valuations will smash NTA. Even if the NTA held up I'm not confident that I'll be able to redeem the units when I want to.

If I took the unlisted units and held them for at least 5 years and assumed that the unit values held steady, I would be getting the units at an approx. 11% discount to NTA and a cash distribution of 5-6% each year. This would get you a return of 8-9% p.a which doesn't seem like enough compensation.

27/06/22

Well I was wrong.... ERF will be selling it's Tweed property and giving unit holders the choice between:

1) $1.15 in cash (including a $0.36 Special distribution)

2) units in an unlisted trust worth $0.88 each (with limited redemption opportunities) and a $0.36 Special distribution. Total theoretical value of $1.24....

Regardless of which option you take unitholders will also get a 3.5c distribution in the meantime. This is a good outcome for anyone who has bought in the last two years.

I'm not a holder in SM but I am in real life.

I haven't quite decided which path to go down. The redemption mechanism allows 5% per quarter to be redeemed at NTA, will there be a rush for the exit? Theoretically I like the idea of the units but getting my cash back could be more difficult than it seems on the surface.

Will see if a little more information comes to light in the meantime.

28/02/22

It seems that there are no plans to consider the sale of the whole portfolio and return capital to shareholders which is somewhat disappointing. The below assessment still seems pretty spot on once they use their spare debt headroom to make an acquisition.

Given annual distributions of 7-8 cps I think the current price is about right.

Given managements track record I think more attractive opportunities may be elsewhere right now.

14/8/21 After the special distribution I've kind of been lost with this one. I think it will still spit out at least 7-8cps in distributions but it's hard to get particularly excited about much else right now. The locations have all avoided lockdowns and Elanor have a strategy of trying to swing assets towards non discretionary and medical uses. I'll back this is at a 10-20% discount to book value but any closer to NTA and I'd be tempted to sell. I still think there are plans in the works. Time will tell.