what is the estimate taxable income, page-15

Capitain,

here is the link for you which tells us how REIT works

http://money.howstuffworks.com/personal-finance/real-estate/reit.htm


and i think defabstar's post explains it (Post #: 4047696)

Hi all

Below is taken from pg 25 of CER presentation 29 Aug 08

This is distributable income calc.



Distributable income - $256m

Net cash flow from operating activities - $92.6m

Net cash outflow from investing activities - $(8.3m)

Net cash outflow/inflow from financing activities - $(73.1m)

net increase in cash and cash equivalents - $11.2m


Cash at beginning - $21.3m
Effects of exchange rate changes on cash and cash equivalents - $(1.1m)


Cash and cash equivalents at end - $31.4m

Distribution to be paid - $32m


Basically what ever cash is on hand at year end needs to be paid out according to the above calculation.

It is unrealistic to assume that CER will have zero cash at year end. that means when they declare the div in June, they come up with an estimate as to what the cash on hand at year end will be.

cheers i hope it helps..