Q: What are you thoughts on Cymbria plan to repurchase share @ 97% of aNAV (5 days preceding redemption date). Would you expect an upswing in share price that would be worth holding?
5i Research Answer:
Units are fairly thinly traded and also trade at an 8% discount. Buying at a 3% discount can help liquidity and also may narrow the discount over time. It is a relatively small purchase ($39.5M) compared to $1B in assets, but shows management is serious about trying to narrow the discount. We would not really expect much more than the move already embedded on Jan 11, just on this news. It will continue to trade instead with performance (not great at annualized 3.7% over five years) and the market itself.