VCX 0.75% $1.32 vicinity centres

Long Term Good Buying Opportunity

  1. 2,052 Posts.
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    If the forecast NTA was $2.23 pre placement but already factoring in a reduction in property prices of 11-13%.
    And the SPP is at $1.48, and there is roughly 20% capital dilution through additional shares from the SPP, then I come up with a post placement NTA of around $2.07.

    And with gearing post placement reduced to 26.6%, which now becomes a very conservative gearing ratio especially factoring in the reduction in property prices of 11-13%, I think VCX is conservatively geared and will attract future income players once things calm down.

    Remember once the savers gets used to RBA effective zero interest rates, there will be huge demand for income generating assets. An asset generating even a 5% yield becomes much more attractive in a zero interest rate world. Hence I see the market re-rating VCX share price upwards over time.

    The SPP price of $1.48 is still around 30% below the new adjusted post placement NTA of $2.07

    I will be fully applying in the SPP even though I acquired a sizable position when it was trading in the $1.00-$1.10 a couple of months ago.

    VCX is an A-grade REIT.
    Last edited by noomxx: 01/06/20
 
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