Ann: Monthly NAV Update, page-4

Agreed. Property sales are chugging along nicely. Of the book valueof assets sold in May, an average of 6.8% went in disposal costs, 53% on compulsoryrepayment of debt matched against the sold assets, and a net 40% retained as cash.The April figures were 7% on costs, 62% to mandatory debt repayments and the31% residue retained as cash by the fund. The GA loan balance at 31 May 2025 was US$163.7 m: this reconcilesclosely with the 31 March loan balance and the April/May asset sales, so it appears thatUS operating costs roughly offset interest income in the US.

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The capital allocation table reveals, once again, that nearlyall of the “available cash” is still held in the US:URF has not transferred any cash to Australia for a long time. Of the $7.9m cash held in Australia $3.5m is frozen in the AFSLCash Reserve, and $1.86m is reserved for share buybacks They don’t say how much of the A$11.27m held back for working capital is in Australia, to cover the fund’s Aust operating costs, butI guess $1 or 2m. On these figures there is almost NO free cash in Australia. URFhas allowed a modest amount of cash to fund buybacks of up to 5m shares. Aftera year of waiting, URF has still not said how it intends to deploy the A$106.25mcash held in USA.There are three possible uses- a much more aggressive buyback (although that dependson investor appetite), extra loan repayments, or distributions to equity holders.I believe the third option is the most value-enhancing for investors. What is unacceptableis just to keep the cash in the USbank earning perhaps 3%. As I and otherspredicted the volume from holders wanting to sell into the buyback is tepid: I don’tunderstand why the Board seems obsessed with buybacks and avoids the obvious,but much better, options of paying a large distribution to investors -or at leastmaking big extra repayments of debt. The status quo is eroding investor valueand there is still no communication from the Board about its intentions.