Plough and Quikbux - ignore my unhelpful earlier response to your good question.
Resident loans total $1,275.5m as a current liability on the balance sheet. Don't forget that these are non interest bearing loans (or interest free deposits) from residents.
As the fair value of investment properties was reduced in significant part due to the tenants staying for longer - now ten years from nine years (from memory), the NPV of the interest free loans is greater - by $86.7m. See note 1(z) resident loans. So this partly offsets the reduction in income from "reselling" property one year later than earlier factored.
While this is 6.8 percent of the total resident loans and you cannot get that return easily - don't forget that there is a compounding effect as interest builds up on interest from earlier years. (This may need to be adjusted with interest rates going down in future years, but lower interest rates will probably decrease cap rates so end up being net beneficial for FKP).
FKP Price at posting:
$1.33 Sentiment: ST Buy Disclosure: Held
