Are things going to get Sticky for Listed Commercial Property outfits ?

[nztx]

https://www.nzherald.co.nz/business/...FQN34J7D44CBQ/

Oyster fund $19.4m profit turns to $22.5m loss, Pastoral House payments stopped


So all it took to trigger this was Property Revaluations - all Unrealised suddenly turning negative - likely funneled through as part of Profit ?


Have to take care traversing delicate Oyster Shells it seems

[ronaldson]

https://www.nzherald.co.nz/business/...FQN34J7D44CBQ/

Oyster fund $19.4m profit turns to $22.5m loss, Pastoral House payments stopped


So all it took to trigger this was Property Revaluations - all Unrealised suddenly turning negative - likely funneled through as part of Profit ?


Have to take care traversing delicate Oyster Shells it seems

And that was for year end 31 March 2023. A lot riding on valuations as at 31 March 2024 methinks.

[nztx]

And that was for year end 31 March 2023. A lot riding on valuations as at 31 March 2024 methinks.

Why would the Fund be so hastily scurrying around putting Stuff on the block for sale now - less than 2 weeks before 31 March 2024 - as reported in first article ?

[dibble]

Why would the Fund be so hastily scurrying around putting Stuff on the block for sale now - less than 2 weeks before 31 March 2024 - as reported in first article ?

Selling assets to reduce debt and/or gearing only helps if you sell them for more than their value. Its all relative.
In this climate it would be rare to realise more than book value (and dont ignore sales costs).
I guess we might thus surmise this class of property company (syndicators in particular) is cash strapped and perhaps close to insolvency (to meet interest payments). One late paying low quality tenant could be the trigger.

[kiwikeith]

Selling assets to reduce debt and/or gearing only helps if you sell them for more than their value. Its all relative.
In this climate it would be rare to realise more than book value (and dont ignore sales costs).
I guess we might thus surmise this class of property company (syndicators in particular) is cash strapped and perhaps close to insolvency (to meet interest payments). One late paying low quality tenant could be the trigger.

That is a problem with property syndicates compared with Listed property companies. The listed property companies often have a large number of tenants so can withstand one tenant being unable to pay. Property syndicates often have only a few tenants and sometimes only one tenant.