Member Info for PoxyTD

For sure there are potential big upsides in RGL. The property market is tightening, so hopefully, combined with falling interest rates, it should result in higher valuations of the assets in the next 18 months. This could reduce the LTV and make the shares much more attractive and reduce the discount substantially.

The fool article ignores the debt position however and this has been the problem for RGL. The facility that just got renewed was at a much lesser amount, but at a reasonable rate. Ideally the uptick in LTV needs to come before more debt needs to be renewed. Fingers crossed this happens,

TrekMadone, the 2.6 years is not the time to clear the debt, but the average amount of time until the debt is due for repayment.

Overall on RGL, having held from the point prior to the rights issue, I cannot support the current strategy. Selling non-strategic properties now when the market is down is just destroying shareholder value. For example if you buy something for 100 and revalue it to 60, and the sell it for 62, you may have a gain on book value, but you have lost 38 on the price you paid. How can we applaud a management team for doing that and trust them going forward?