What does it all mean?
The minimum will be 3.3 cents as this has been previously announced.
Then you have the net proceeds of the recent sale of $81 million which equates to approx 16 cents per share.
Now the decision BJT need to make is as follows;
1. Forex counterparty hedging issue, can it be extended, re-negotiated or will it need to be paid out.
2. Assuming the hedging issue is resolved then BJT manangement need to decide whether utilise the $81 million in part to supplement the dividend.
From my point of view as an outsider looking in i would be expecting 4 to 5 cents per share be released from the sale proceeds, hence paying a div of between 7.3 cents and 8.3 cents.
Also the dilutive effect of the the pro rata has been removed which is extremely positive.
No surprise by the panic selling (profit taking), as we all fear the unknown.
BJT
babcock & brown japan property trust
