Ann: Preliminary Update on Property Revaluations , page-8

re: Ann: Preliminary Update on Property Reval... From Appendix 4D Announcement dted 24th February 2010-07-23
Page 6 of 26 Directors Report

Fair value of investment properties

In accordance with the Astro Groups investment property accounting policy, the Astro Group assessed the fair value of investment properties during the period which resulted in a downwards movement of $73,501,000 to $1,437,194,000 (Half year ended 31 December 2008: $125,461,000 net downward movement). Refer note 1d(i) in the Notes to the Financial Statement regarding investment property valuations in the current
economic climate.

So as at end December 2009 Yen 1437,194,000 is the value of assets in the portfolio.

This is what you drop by 5%

So, 1,437,194,000 x 0.05 = 71,859,700

Therefore 1,437,194,000 less 71,859,700 = a portfolio value of 1,365,334,300

Liabilities do not drop by 5% though.of course.

Cheers and good luck.

LVR looks to have probably climbed a bit of course too. Probably around 75-7% mark.

Again the point here is that debt reduction from cash flow is not an option because it doesn't work. There is not enough cash to dent your debt more than upward revaluations will achieve. We just have to ride out the cycle and as long as interest coverage is there then from what I understand this is exactly what management intends to do.