down ramp, page-4

Having checked through the process I am not so concerned on the property valuation. The discount rate has not moved higher. That is key they are probably a bit lower on occupancy so a few properties lowered the valuation by 1.5% or 12 million. This equates to 3.4c of nav. so the nav moves to about 57.5c. However there is an $23million swap book liability that keeps reversing over time. This is over 12c going the other way over time which sets up a nav of close to 70c.

This is just another accounting process that's correct but over time illogical as its makes no sense to keep adjusting the value. The value is the value over time and as cap rates stabilise the increase in rentals will start the whole process of reversing and increasing values again.

I am only too happy that the market doesn't view these things correctly as otherwise I would struggle to find investments. Yes I would take up at 40c unless I get another mad day and can purchase below that.

By the way I dont believe they will scale back I think they will just take the money as it gives them more flexibility. However I think that the price weakness is delaying them at the moment. No good launching it when the sp is hovering 1 c higher.

I think these guys are appalling communicators and really shareholders get a real raw deal on information but in reality the numbers have looked reasonable all the way since January 2009. I am sure the cornerstone investor is influencing things and I like what I see.