Ann: Independent Valuations and Leasing Update, page-3

I'm reasonably happy with this and would say the new NTA of 0.93 cents is slightly ahead of my expectations. I'm actually relieved to see a substantial initial valuation hit as if they'd come out with anything less than 10 percent I don't think the market would have believed it anyway and we'd be in the same boat for another 6 months tracking sideways at a huge NTA discount. I guess we now have to work out whether we think there are further write downs to come? Personally I can't see the cap rate doing much higher than 6 percent as a worst case scenario. I'd also like to see some commentary from management in August around the timing of acquiring these 2.5 properties because as much as I think they are very good assets it's pretty ugly to cop a 15 percent write down in the first 12 months.