Ann: Dividend/Distribution - SCG, page-23

Whilst I am no accountant, the subordinated notes are not calculated in any corporate structure unless they are not designated as a Hybrid note. When I had shares in Babcock & Brown, I held staples and Hybrid notes as insurance, hence I did not lose any money when they went into receivership. With SCG, as you have pointed out although not in a red circle...like ANY OTHER CORPORATE STRUCTURE...Hybrid notes are never calculated within a pro forma debt structure.
This is where a lot of investors unless informed of Corporate debt structures as apposed to Sovereign debt structures have an uncanny way of paying back debt very rapidly & not affecting the 70% to 90% rule with regards to REITS.
SCG are going with 70% less 6.4 times EBITDA because we are now in the unforeseen circumstances...to say the very least...NSW being shut down is about as bad as it would get for them. The money they lose due to these unforeseen events gets written off and still be able to pay 5% divs even in the worst of times. There is a good reason why Super funds want these structures in their portfolios as a defensive.
Hybrid notes allocations are not leveraged debt with an end of year as far as I know. It is an MOU leveraged against income and not Assets. Quite clever when you think about it which is why Australia & Singapore that adopted our model are the safest REITS in the world. The GFC changed all that....
As a disclaimer, I also hold Hybrids with SCG & VCX on third tier tranche in Swiss currency.

Once again, as always...happy to be corrected for educational purposes...thanks for your reply....