better than expected results?, page-2

Hi David 75,

Whilst the results are better than expected - the desire to raise more than 1 capital raising of 15% to by way of preferred institutional placements means that ordinary retail holders can be diluted quite significantly. ie at current prices of around 26 cents a further issue of 534 million units would raise the princely sum of $138 million and reduce nta to around $1.

As a comparison, if the Dutch Office Fund is liquid they could sell the 13.4% of units and obtain $327 million in cash and reduce gearing to 31% and unitholders would not be diluted. This would of course reduce management fees so probably won't happen.

Are you going to vote in favour of further raisings?


Steer