Ann: Fund and NAV Update, page-8

New management selling assets. Expensive debt repaid, so new sales should head towards paying back the preference shares, which at AUD199m is a lot so this may take awhile, although to repay the AYUHB and HC they sold AUD265m of property. Pref conversion date is Jan 1 2023. Conversion at the current share price would be a disaster given the conversion max of 205 shares per pref would result in the issuance of 405m shares vs the current number on issue of 385m. Such dilution still occurs up to a share price of 48.7c (100/205), after which it is a sliding scale. Hence conversion to be avoided at all costs. At $50 AYUPAs are a better bet than the ordinarys (which are still cheap at 20c but will take longer to double your money unless a takeover comes along). Meanwhile Mr Pitt after failing to get managements attention 18 months ago has launched a bid for the parent EP1. The bid is floundering as its too cheap however whats he really after???