update, page-5

Granev, I think a writedown was expected by the market given the generally accepted condition of the property market. Hence why the stock was trading way below NTA and the share price sunk from $2 to $1 (or $6+ from 2007 to $1 now). I was expecting about $40-60 million in writedowns, given the current valuations relative to the value the properties were carrying in the books. You'll notice that every financial statement also showed a few million in property writedowns, rather than this being an ongoing process, future writedowns are now brought forward to the current year. NTA per share will thus be ~$1.15 to $1.30 after the writedowns PLUS any profit the operating businesses generate.

The share price reaction is typical for an announcement of this nature, I'll be looking to sink some in tomorrow and next week, see how we go. Given the discount to post writedown NTA and the operating profits, smart types I presume will jump for this.

The share buyback will likely recommence after the financial results are announced, but I'll see if I can get it to be resumed immediately.