It's crunch time for Brisbane-based Cromwell Property Group, which has been waging a war of words with its takeover target, $2.8 billion Investa Office Fund
Investa, chaired by Richard Longes and led by fund manager Penny Ransom, has taken a hard line with Cromwell's Paul Weightman, who has insisted he can't make a better offer unless gets access to Investa's corporate information.
And in case Weightman hadn't got the message yet, Investa backed up its tough-talking 'put up or shut up' stance with an earnings upgrade at its interim result on Thursday.
Now the spotlight is on the $1.8 billion Cromwell, which reports its result on Friday.
The longer the stand-off continues, the more time analysts and investors have to make a comparison between Investa, a pure-play property trust, and Cromwell, both a fund manager and landlord.
Cromwell is more heavily geared than its target. Its stock has slipped slightly since its last big deal, the $207 million acquisition of Valad's European platform two years ago. In that time, Investa's stock has forged ahead.
Weightman's operation faces scrutiny over the sustainability of income from his European adventure. Post Brexit, collecting fees from property funds management may not be so jolly a caper.
And at home, Cromwell has significant upcoming lease expiries in the Australian portfolio. That may prompt some queries about the strength of his ongoing core income.
Weightman must also keep his investors happy, with steady growth in annual dividend payouts.Some sharp questions may well be asked as to whether that dividend growth takes the payout above Cromwell's free cash flow.
