distribution announcement - closest to the pin, page-9

NTaylor,

No worries. But here was my rationale for 6.53 cents.

Interim results stated that there would be a full year distribtion of 10.53 cents entirely from cash flow.

Since they already paid out 4 cents per unit, hence my estimate of 6.53. As at the interim result date they obviously had an idea that they would have sufficient cash flow to make this payment.

Then we had an announcement saying the taxable income would be 10.7 cents with 3.3 to be in cash and the rest in scrip (ie 7.4 cents). This leads me to believe something strategic has changed with the company and I believe it has to do wit hshoring up the balance sheet. Even when they offered the scrip they had more than enough cash to make a full distribution in cash.

So 3.3 cents because they previously advised this, 1.5 cents for teh CGT owing by unitholders for the capital gain from SHinjuku plus say another 1.5 cents or thereabouts as I don't think they will need to apply all the net proceeds less unwindng the out of money hedge towards debt maturity in March 2010. I'll go with 6.53 cents.