HLD Land Development Limited Partnership Units V.HLD.UN

RE: OK Here's How I See It:

[tbor]

Here are a few more things to think about: The limited partnership money has been spent to acquire land. The new company HLD plans to rezone, service, subdivide, and sell for profit these lots. HLD says they have enough capital for its foreseeable needs. On the surface it may look like there is some value, and it may, but I have concerns. With in the info I have read I found some interesting facts. · The only revenue in the last two years has been from bank interest. No sales have been recorded in 2 years. · They have relied on payments from the limited partners however most of these have been paid in full which has reduced funds to HLD. · They are paying themselves $259 000 plus .9% of the original capital of the partnerships (the reason this one concerns me is that the share price has come off and they have no incentive to improve it because the are paid on the original amount of the LP’s not on market value) · They have already mortgaged one property to fund liabilities · Proceeds from sales will go to pay down debt, then to build out a rolling reserve sufficient for subdivision, servicing and marketing of HLD remaining property on a phase by phase basis, then after all that the shareholders might get some cash. The mandate does not allow for the purchase of more property. The problem with this is that over time there could be significant problems, sales may not be higher than expenses. And the shareholders seem to be last in line. · The shareholder being last in line is also the most likely reason why the markets don’t like it. All that being said their plan could work, there could be some value. They have taken an awful long time to this point, so I am not so sure.