attn hotrock1, page-3

Hi Hatch,

Got back recently and noticed your post.I have been reading the posts on HC re Valad over the last week..as I said before..one of my bad habits.. I just can't help myself.

I haven't gone through the full financials or report fully yet..I spent an hour going through the FKP results @ 8.30 this morning and that was one report too many...Athough I Did have a quick peek at the pertinent bits on the Valad report.

I read Stringticklers post and must say he has hit the nail on the head..thumbs up! A true "Amateur" (??)FA from a long termer...you know from my last post a week ago that I work on FA and look at situations from a long term perspective.

Quoting from my last weeks post:

"Do not expect the results to be brilliant.I am sure there will be devalautions. This should have been a foregone conclusion to investors who should have factored in the current state of the market"

So! as far as todays results go in my opinion it's been

1. A Good result

2. Dumped after announcement.. normal..Day traders out.

3. A Very large Volume day

4. given Large support @ 12.5c late afternoon with a small sell off @12c at 4.10pm given the volume.

Notes from report:

Minuses:

A:
Nil Distribution to be paid (underlying distribution 2.2c).This will answer another posters question.

B:
Debt for equity swap..subject to stakeholders approval.
Valad would be better off taking the unsecured loan option and not diluting IMO.

Positives:

C: NTA is 24c so plenty of scope for upward SP movement..sht term ..much better long term after debt reduction

D: Gearing: 43%..this will keep the Lenders at bay.

E:
Decrease in Valuations was 7-8% from Dec 08 to June 09.
Very good..although I wouldn't trust Valuers' results.
Any valuation less than a 15-25 % reduction,as I expected,is a pretty good result.

F:
WACR (Weighted average Capitilation rate) has improved from 8.6% to 8%..what this basically means is they will be getting 7% better prices for their assets when they sell them.

G: $9.2Billion under funds management..great cash cow here.

H:
Leases have a WALE (weighted average lease expiry) of 4.6 years ..good,safe figure.Occupancy rates of 95.9% and rental arrears of 1.8% of gross income.

I: European mess sorted

J: Back to basics business over the ensuing period.

I won't go to Z in the points..I'm getting RSI.

In a nutshell:

It should open higher in the morning and after the usual ups and downs should end higher than today. Long term it appears to be a safe enough bet for me to finally buy some stock.

Autralia will be (IMO) insulated from any double dip recession. We will be underwritten by the Energy /Resources sector which will rapidly filter through to the property market in the Commercial and Industrial sectors.

Once in a lifetime opportunity to be in Property.

Must get some of my old mates to jump in again with some larger buy positions.

Well done to the true believers..remember only a few weeks ago most posters were excited about $0.001 movements in this share.

The current price makes it a very attractive Takeover target.

Boy! That was a big nutshell.

Thanks Hatch..been busy today trying to snare a few office blocks on a 10% net yield basis..not much luck.

Stringtickler..I'm about to resume my glass of Plonk and I'll have a drink for you.

Disclaimer: Don't blame me for the above..the wine made me do it.

DYOR.