comments on the report, page-2

Hi.

What is interesting about IEF is that they have somehow booked another large loss for the half. Realistically at this moment this is a property trust where the only beneficiaries are the banks who lend to them ( getting 8.6% interest on their secure loans) and ING who rip out a good 1% of net assets management fee plus expenses ( $381k for half year - refer page 5 half yearly report).

There is hope for the punters yet. Check out the prices that LEP have been getting selling their pub portfolio for, particularly their sub $10 million pubs - yields below 6% and even one pub where the purchaser will only get a 4.4% yield. Mind you LEP has WOW as a major tenant, not Icon.

LEP has been cleverly offloading pubs at very good prices, what does IEF do in the last six months - not sell one pub!! IEF has a LVR of 70%!!

You may want to have a look at the conditions of the convertible notes before you stump your money. The convertible notes are $20 million versus current market cap of not more than $30 million.

Underperforming greedy external management has destroyed what should have been a solid investment.

Sold out over a year ago and never came back.