Ann: Dividend/Distribution - LSF, page-3

LSF's dividends, while remaining conservative, now provide an attractive yield and are clearly sustainable.

Section 16 on page 38 of the results report shows that the dividend franking account (funds available for future franking credits) increased from $17.7m to $197.2m during the year to 30 June, after deducting $11.7m for franking credits for the latest dividend of $0.045.

The dividend profit reserve (funds preserved for future dividend payments) increased from $505m to $603m during the year, after allowing for the latest dividend.



LSF's NTA peaked on 8 June, then went into decline until 15 July, and since then has resumed its more usual upwards trend.

The SP is currently at nearly a 10% discount to the NTA. If the SP-NTA discount continues to grow then the buyback can come into operation while the discount is greater than 10%.

So, any further SP downside appears to be limited, whereas there is potential upside of more than 20 cents to close the SP-NTA discount - plus there is potential upside of whatever the future NTA increase may be if the current trend is maintained.