TOT rights issue
Large rights issue at substantial discount, almost 1:1 to reduce borrowing/ pay interest. Endorsed [? tersely] by related party. Gross 10% yield projected on TERP. How would you assess?
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Hi Paul,
For subscribers not familiar with 360 Capital REIT (TOT) its an Australia-based investment fund that invests in various forms of real estate assets. It includes ownership of direct and indirect property and real estate financing through senior and mezzanine credit.
The companies paid a 3c p.a. fully franked dividend since September 2020 yet the stocks fallen by ~45c over the same timeframe, i.e. not exciting. We have no interest in a company whose shares have fallen consistently over the last 8-years however attractive their dividend looks today. Ultimately, we think these guys get their priorities wrong, failing to have broader shareholder interest as their north star…
