Capital GrowthThe company's capital growth prospects are relatively low, and the portfolio equivalent yield is not expected to provide sufficient headroom for capital growth.
Market PreferenceThe equity market has a clear preference for companies with embedded organically produced rental income growth, but the nature of the company's low-yielding rarified portfolio means shareholder returns are largely confined to capital.
Valuation ConcernsThe shares were materially undervalued at a near-50% discount to NTA last year, but that discount has now narrowed to 25%.