Ann: Monthly NAV Update, page-4

I agree. The URF RE Boardhas consistently refused to explain its strategy (if any) for capital managementas between buybacks, distributions and voluntary debt repayment. The large surpluscash balance has been growing for months, and will continue to grow rapidly asassets are sold. As you say communication has been poor and contradictory. TheBoard’s actions –so far- have been the opposite of its stated intention to returncapital to investors as efficiently and quickly as possible. I hope they arenot intending to make a large (voluntary) repayment of debt soon, as the loan costsonly 4% pa until May 2026. URF seem keenon buybacks yet, as others have noted, the market selling volume is far too lowto meet the 25% level approved.

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At 31 March cash held in Australia was only A$8.53m. Of this,$3.50m must be held as the AFSL Cash Reserve Requirement. This leaves free cashin Aust of only $5.03m for all purposes including funding the buyback andmeeting any working capital needs in Australia. On 1 May URF must pay $6.91mdistribution (1 cent). Thus before 1 May URF must convert at least A$2m to coverthe distribution- preferably more to allow for the buyback and local working capital.The silence/confusion makes me think that the Board doesn’t have a clear strategyfor the cash. This is the responsibility of the URF Board in Australia, not the US outsourced management. PerhapsURF will be kind enough to enlighten investors after the GA loan prepayment penaltyperiod finishes on 19 May.