My estimate of 7c pre-tax was perhaps a bit optimistic....

My estimate of 7c pre-tax was perhaps a bit optimistic. However, you’ve prompted me to re-check the figures. The Cash Flow Statements in the annual reports show total disposal costs divided by gross proceeds were 5.37%, 6.05% and 5.76% in 2020, 2021 and 2022 respectively. So it should be safe to use 6% for the future, as an average. (In the last 2 years, there have been a few sales at about 7%, or more, but there have also been several sales in the 4.5 to 5.5% cost range). Also, not all the assets in the balance sheet are property- there’s a lot of cash, bank reserves and other bits and pieces. At 31/12 22, property assets were about A$960m: today they would be about A$915m. Also URF’s 15% US deferred tax provision is for capital gains. There are large tax losses (not recognised in the balance sheet as assets) that should cover any (unlikely) profits that don’t arise from capital gains.

A$915m x 6.0%/ 733m units today = 7.5c. Since these costs would reduce the gross capital gains, the 15% CG tax rate should be applied; the after tax effect of disposal costs on all property assets would be about 6.4c per unit. So I take your point but think 10c is too harsh, especially after tax. 7 or 8 cents after tax allowance should be enough. In any case, the much bigger worry is how many years of sales it will to take to achieve full cash conversion (see my recent post).