my revised nta take is now 1.32, page-14

Hi Sacrophagus

The US devaluations will increase NTA as detailed in the first post on the thread largely due to the AUD/USD exchange decresing from 0.96 to 0.69 from 30 June to 31 Dec.

My issue with the ann released on Friday is, it states that the Australian property portfolio fell in value by 10.3% and stupid people from the media have said that CER have written off $x amount from its portfolio.

They havent written off $200m from its Australian portfolio. What theyve done is write off the $200m less the proceeds received for the sale of Southport, Barrintons and Meadowlands. These properties were sold for marginally under book value.

$120m was written off its Australian portfolio. The other $80m decrease in the Australian portfolio is attributed to the sale of the above 3 properties.

Same issue with the US portfolio. There were some properties which have been included in the book value figure as at 30 June 08 but not included in the book value figure as at 31 Dec 08 as these properties were sold.

For example, Hannaford Plaza was sold for abot $23m (CER share $22m). Yes this has decreased the portfolio value as at 31 Dec by $22m but this has also decreased the debt value by the same amount. In accounting this would be known as double entry bookeeping. We cant reduce the asset base from the sale of an asset without recognising the same increase in cash.

US$22m (AUD $30 @ ER of 0.692) or about 1.3c per share will need to be added on to the NTA calc.

Therefore the adjusted NTA figure would be $1.32

+ 3.5c as calculated in previous post due to the sale of Australasian properties

+ 1.3c for sale of Hannaford

+ the sale of any other US properties that occurred from 30 June to 31 Dec.

= approx $1.37 NTA


Cheers