cortlande towne center sold for 78 million, page-15

Rough estimate of the distribution is as follows:

CSF made net profit of $51m for six months ending 30 June 2008.

Therefore for 12 months, it would make $102m

However, you need to subtract the decrease in rental income CSF generates. I had a play with my spreadsheet yesterday and I came up with $10m decrease in CSF ABR as at 27 Jan 09. I can email it to you on Monday.

In addition to the $10m decrease, we need to subtract the revenue foregone from the sale of Cortlandt Town Center. In my spreadsheet, I predicted a decline in CER ABR to $7.9m.

We will need to subtract $10 and $7.9m from $102m.

This will give us about $84m net income. This may be a bit higher as we will save some money on interest payments as the debt levels have reduced.

CER has 2.3b shares on issue so we are looking at about a 3.5c distribution from CSF to CER per year.

Distribution in August IMO will be 1.5c - 1.75c.

Any comments?

Cheers