mdt valuations out, page-4

Mervyn's going under had a massive effect on MDT's bottom line. It contributed 10.3% of annual base rent!

No doubt this had an unfavourable impact on valuations for this HY.

See extract from ann dated 12 February 09.


Mervyns’ portfolio update
The Mervyns portfolio contributed 10.3% of annual base rent and was 78.2% leased as at 31 December 2008 (compared to 100% as at 30 September 2008). Subsequent to 31 December 2008, Mervyns has vacated all its locations.
The Trust has made progress on its 37 former Mervyns’ sites. The Trust has sold five sites and had a further lease acquired at auction by Forever 21.This comprises 76,550 sqft and located in Palmdale, California. Following Gottschalks filing for Chapter 11, lease negotiations with this retailer on a further property within the Mervyns’ portfolio have halted.
The Trust continues to have discussions with various national retailers and others who may have an interest in leasing or potentially acquiring any of the remaining 31 locations.
Macquarie DDR has received the proceeds of its share of the Mervyns’ security deposit letter of credit amounting to approximately US$7.8 million (US$3.9 million, MDT share). It is anticipated the funds will be allocated to debt service and operating expenses in an effort to assist the financial obligations of the Trust while leasing up the vacant space.