Rafa Nadal turns 40 today.
I bought his racket when I was 15.
20 years later, it still took me a year to work up the guts to watch his Roland Garros farewell.
I've read every interview. The autobiography. His Players' Tribune letter. The new Netflix doc.
What he taught me 🧵
@JSE_Invest@TheAnalyst777 If they use all their net profits for the next 40 years to pay down their debt,then only will they be able to sell their properties and realise their nav
@JSE_Invest You didn't say it but im pointing it out because its not healthy for a reit not to be able to buy new properties,thats a red flag on its own
@JSE_Invest The banks want them to slowly grind this thing till the end where theres no loans and no properties left also,thats where its heading,thats actually the best case scenario for delta and the banks also,if they making 100m a year net profit itl take them decades to free the props
@JSE_Invest Another thing you may not know,due to lease escalations over the years,alot of these leases are higher than market related prices,so if the government tenant leaves,delta can only fill up at half the price,at that rate they wont even be able to repay the interest on their loans
@JSE_Invest The banks rolled the debt because they know if they had to demand it they wouldnt get paid the principal amount for the same reasons i mentioned,the banks have no choice at this stage,if for some reason the government decides to vacate the properties,delta will be liquidated
@JSE_Invest Take a look at their book values for their properties,it isnt in line with reality,its probably worked out on a roi basis,these properties wont sell on a roi basis due to location and tenant profile,your best bet is if they go on this way until their loans are paid off in full
@JSE_Invest Im not following,if this was step 1 and they definitely wont pass this test,how are they investable? Il make it easier for you,their disposals,go and see what price they paid for these properties verses what price they sold it for? They have been selling for 50% less