interest cover, page-7

I spoke to Rubicon Asset Management Company representative. He said the Business of rjt is going as usual. No problem. But the market is not happy with the level of debt and the uncertainty of afg and refinancing risk. He said the Y40B loan was only taken in November as a 6 month short term debt, If it was granted in November there should be no problem with the rollover.

Anyway he said there will be announcement around 28th feb on plans of the rjt reu and rat. among being considered is selling rjt assets to lower debt. but that means lower distribution and lower yield. But if sold at book value even if the asset proceeds are applied 100% to repay debt, the company NTA remains at .97C. Assuming they sold 30% of their property and apply to repay debt, the gearing will drop to 43% which should be happily accepted by the market. Distribution should drop to approx 7C but a very safe property trust given the strong balance sheet post sale, a 10% yield is acceptable and rjt should be valued at least 70C per unit