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The Value of an Office

The Money Café with Alan Kohler

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Charter Hall Long Whale REIT's Gearing Level Is 42%

The gearing level that the most debt governance have is around 50%. So we had yesterday Charter Hall Long Whale REIT, which is one of the Charter Hall REITs. All of their properties went down 360 odd million, about 5%. But the office properties fell harder. So they were down 9% over the course of the year. The problem is if you keep getting the valuations falling, you start to get near this point. You start to potentially breach these debt governance.

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