Thursday, December 19, 2013

Reef rolls out returns

Reef Casino Trust (RCT) updated guidance yesterday which appears to indicate a robust result for the latest half and year:

Based on our distribution policy of distributing 100% of distributable profit*, this means that our current estimate of the distributable profit* for the full year 2013 is approximately $14 million. This is above 2012’s distributable profit of $10.8 million due to improved rental contributions from casino operations including main floor table games, electronic gaming machines and also premium gaming.

The 30% lift in distributable profit also results in a substantial increase in distribution for the half to 17.5c per unit. Would have to go back and check to confirm that any payment since the announcement would be in addition to the $4.35 offer proposal from Aquis?

RCT has continued to trade thinly well below the offer price but did lift yesterday on the news to $3.85 albeit still with less than 20,000 units traded. Full results and details will be out in the new year.

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