EG - thanks for putting in the time and effort to attend the AGM...

EG - thanks for putting in the time and effort to attend the AGM and meet with the UOS management. I, and I'm sure many other holders who don't make it to the meetings, appreciate any information or insight you can share with us on this forum or in your EGP blog.

I agree with all of the points in you post, although I don't think there are any significant capital allocation inefficiencies introduced by the DRP unless excess surplus cash is generated by the high uptake rate. This doesn't seem to be the case for two reasons. First is that the bulk of reinvested dividends goes toward parent company reinvestment in UOADB, and second is that the nature of UOA/UOADB business requires a war chest so that large purchases can be effectively negotiated when required - i.e. a low return on cash held is the price to pay for a high return on development business enabled by holding the cash. The proof of the pudding is the high rate of return over a long period. I would only see it as an issue if there were more cash held than reasonably required for a war chest. When a large excess cash position existed immediately following the spin off of UOADB, UOA promptly paid an 8c/share capital return.

The issue is often raised that the discount given to DRP participants is unfair to dividend takers. Valid argument, but I think it's around 2%? of non-participants, and the easy work-around is to participate in the DRP and then sell shares on market (no discount) if wanting to raise cash. A bit fiddly, but not difficult.