Ann: Preliminary Update on Property Revaluations , page-29

re: Ann: Preliminary Update on Property Reval... Hi Coppertop, I am not overly concerned about the NTA either, unless it is going to impact the business adversely, eg. LVR covenant on the loans, which AJA do not have any more, fortunately.

The operational income (which is partly driven by occupancy rate) is the most important factor, IMHO. At the end of the day, AJA is a business, which is measured by how much money it makes.

However, I can't say that I agree with you about lowering distribution to pay down debt. IMHO, AJA should only amortise debt when absolutely necessary (read: in scenarios where a gun to the head by the banks). Look at it from different angle, we shareholders are part business owners, the profits from the AJA is OUR money. So, we use the money to pay down debt, we are getting 2% return (average interest rate that AJA pays). If we get the money from distribution, I am sure we all can put it to a place with better return (12 months term deposit is paying 6% in Australia). In my mind, debt is something that: if it doesn't kill you, it will make you rich. :)

Good luck and DYOR.

Snowfree