Ann: Dividend/Distribution - TOT, page-5

Interesting that if we presume the vacant floors get leased and the 3c distribution for the year becomes sustainable this current share price brings us back to an 8% yield with the possibility of one further year of franking credits thrown in as a bit of a bonus. This is against a current (post capital raise) gearing rate of 31.1%.

The issue is the still tight cap rate of 5.3%.

Older buildings seem to be changing hands around 6% now and the the stand off between buyers and sellers has eased which is giving a bit more valuation clarity.

We potentially should factor in the high quality of these buildings and work on the basis of a 5.75% cap rate and the gearing blowing back out to the mid to high 30s?

I'd say we see the NTA drop a further 11 percent to 65 cents.

This would give us a current NTA discount of 43% or 38% if we see the NTA drop all the way down to 60c.

This is really an old fashioned "cigar butt" at this point worth more dead than alive.