Ann: Fund Update - Independent Valuations, page-9

all office assets have taken a hit across Australia so feel it’s hard to blame management for the declines in values.. DXS, COF all taken a hit

be interesting to see if they mention in their results whether they have tried to sell any of the assets..the retail asset is obviously for sale by Fortius but that’s only a small asset- I would have thought that a sale of one of the other assets would be high on the agenda as don’t think they want to risk values falling again in the next 6 months which could push the gearing levels closer to the upper end of their target gearing range

unless management believe these valuations are really the bottom in which case then it’s probably better to wait to lease up the vacant space to maximise the values

40% discount to NTA is quite large though given where we are in the valuation cycle - all now depends on how much further interest rates will rise..