Ann: Update on Debt Repayment Extension, page-3

Those significant asset valuations are too rubbery to take seriously.

With tenants not paying rent all over the country we will see property management businesses falter very quickly as they stop taking in sufficient revenue to pay wages.

Multiples were already adjusting downwards from 4 times to 3 times and below.

As far as mortgage book valuations the pre Royal Commission valuations of 2 times are done now.

This business can not continue as a going concern and their bankers know this.

The business has completed in excess of 5 cap raisings in the last 3 years and I believe investors both existing and new are now tapped out on putting in fresh equity on the promise of one last time.

With GCI earnings on property sales now falling to levels we have NEVER seen in our lifetime one would want to see mass cost cutting exercises across the HQ function.

I cant see the business surviving the next 6 months.

Shame as I have always said, I really like the business model but it just did not scale up fast enough.

I see a death spiral in the SP over coming weeks.

10x