Maxine,It is still a very high dividend yield. In terms of...

Maxine,

It is still a very high dividend yield. In terms of pricing BJT Stock you cannot ignore the first half distribution. 3-4 cents for this half plus the 4 cents from the first half = a very high yield.

As far as cash is concerned, quite frankly BJT is VERY cashed up. More so that other REIT's. Again, as with CER, BJT is playing coy. We know that they have budgetted for at least 3.3 cents payout in cash. So they estimated that they would have at least this much.

As at end December 2008 BJT had 107,659,000 in cash and restricted cash. Ignoring the restricted cash as it is obviously restricted for reasons we do not quite know, BJT still had 79,941,000 in cash (or about 16 cetns in cash per BJT unit on issue).

Also they have netted 81 million from Shinjuku. Assume 40 million is fully required to close out the hedging situation, then that is freely available additional cash of $40,000,000 (or about 8 cents per unit on issue).

I wholely believe (LVR issues considered) that BJT WILL NOT use all of the $40,000,000 as in the illustration above to reduce debt. I believe this based on their interest cover and that there are no debt maturity issues in the medium term.

Now you could be an eternal optimism (and be unreasonable) and assume that there's all this cash and based on BJT's cash position (as they put it) we could get a distribution of 24 cents since distributions will now be based on cash position.....but that would be stupid.

I maintain, particularly given the fact that there are institutional investors and institutional interest in BJT that it is wholely unreasonable to pass down a CGT liability without at least providing the cash for the tax bill. That is around another 1.5 cent distribution.

I posit a "earnings" distirbution of about 3.3 cents plus a "capital" distribution of 1.5 cents. As I posted originally, based on the average investors' tax situation, anything less = being screwed over.

Even then, all of that will likely go to the ATO but that's cool. Remember just because of this Judgement (whatever it actually means), taxable income will still be 10.7 cents and presently I can't see how my (and your) taxes will not be calculated accordingly.