Ann: Dividend/Distribution - TOT, page-12

For me the question is what a sustainable dividend might be going forward. I posted this "worse case scenario" model in one of the other threads. Do you guys have any comments on it?

I've just been trying to do my own calculations on how much current income is coming into TOT from the 2.5 office properties to build a bit of an adjusted "worst case scenario" model.

I'm working on the basis of a further 11 percent decline in the property values to bring us to 200 million and an approximate 6 percent weighted cap rate.

Divided by 144 million shares on issue (and presuming a steady debt of 83 million) this would give us an NTA of 0.81 cents plus Home HQ Artamon which I've rounded down to 4 million to be conservative (adds 2.8 cents) and cash of 3 million (adds 2 cents)

This would give us an NTA of 85 cents and a discount of 30.5% based on todays SP of 60 cents.

The gearing would be 41 percent which isn't great but still within the covenant of 50 percent.

Now I'm trying to workout a future dividend yield if TOT were to simply pay out net earnings from their offices.

To me it looks like 11.9 million in gross income minus 7.9 million in property expenses and finance costs.

That comes out at 2.7 cents per share which would be a hypothetical dividend yield of 4.5 percent.

I did see a previous poster mention that this income isn't a full 12 months from the properties but I can't find this wording anywhere in the management presentation.

Am I going wrong somewhere?