- Stock watchers discussed the potential benefits and risks associated with investing in CAL, including its high yield at 10.78% and a significant discount to NAV of over 40%.
- Concerns were raised about the downward trend in NAV, influenced by major shareholders and market conditions. Confidence in the investment remains mixed.
- Some expressed satisfaction with the company's strategic maneuvers, such as the delay in audited results combined with the release of unaudited figures, which was seen as a tactical move.
- Discussions also included the complexities of withholding taxes on dividends in different investment wrappers like SIPPs and ISAs, with some watchers looking for ways to avoid these taxes.
- Concerns about the company's management of assets and liabilities, including high LTV ratios and the impact of potential recessions on property values and rental income, were prominent.
- There was talk about Growthpoint's potential takeover and its implications for shareholders, considering previous NAV declines and ownership stakes.
- The acquisition of shares by the employee share ownership trust and its implications for employee incentives and share price stability was also debated.
- Optimism was shown in some quarters due to increased dividend payouts and strategic acquisitions like shopping centres, which are expected to yield high returns.
- On the downside, the potential for losing management fees from asset sales and the impact on dividends were points of concern, alongside discussions on the future refinancing risks due to the current economic climate.
- Lastly, the management's strategy regarding debt covenants, particularly the vagueness about covenant cover and headroom, was critically discussed, indicating a cautious outlook from some investors.