Hi Madoff,I just put together a quick spreadsheet to check the...

Hi Madoff,

I just put together a quick spreadsheet to check the numbers based on the half yearly.

I agree with your income figures, but I have expenses at $25m for the year. Perhaps you didn't include property expenses?

Anyway that puts me at about 10c distributable per share. I have assumed the slightly lower debt cost of 8.5%.

Figures in millions..

lease income 33
rec out 5
other inc 0.8


legal 0.2
other expenses 1
(borrowings 171 x debt cost 8.5%) 14.535
prop exp 7.6
remun 1.8

net op income 13.665
shares on issue 135
c.p.s. earnings 10.12


While the s.p. should be higher for this sort of risk/return, the real problem is that the 50% gearing isn't getting very much bang for the buck. We have a property yield of 9.5% and a debt cost of 8.9%. We have all the risk with not much benefit. (Thankyou banks).