long term effects of currency hedging

I'm concerned that distribution is likely to fall after present hedging lapses (assuming present A$/Euro exchange rate is maintained)

From REU Half Year Results June 2007

> REU has entered into foreign exchange hedges for 100% of its Euro income for the next 6-7 years at an average
rate of €0.49
(This is what I want to know - what happens afterwards?
See my guess calculation below)
> REU’s equity capital exposure has been hedged through a series of cap and floor arrangements as per the table
below:
0.6479 0.5301 Nike HQ
0.6351 0.5197 Hermes Plaza
0.6808 0.5530 German Portfolio
Cap Floor Assets / Portfolio
(pg 17)

Q – What happens after the 6-7 year period? Would the distribution change according to the current exchange rate. Eg assuming present exchange rate of Aus$=€0.5991 is maintained, and hedged distribution would be 10.1c, would distribution after hedging become 10.1c * €0.49c/€0.5991c = 8.26c? (still quite respectable given current at sp of 47.5c)

Anything else we should know about the currency hedging?