Superk28 and all,Firstly the caps lock was for effect. I resent...

Superk28 and all,

Firstly the caps lock was for effect. I resent being labeled a bully. If you knew me, which you don't, you would know that I am just the opposite.... I have always campaigned in my own way for rights and respect for those weaker or less fortunate.

In relation to sgoni's post there was CLEARLY (caps is that ok?) error in it. The post implied a cash distribution of 9 cents.

If we start at the notice we got regarding the Bamford case, putting the reasons aside in regard to why BJT reacted as they did, the fact is that BJT is a Trust. As a Trust it is a "look through entity. In fact it is not even an entity as such. Prior to this Bamford ruling (again ignoring the implications) BJT were well aware of their obligations hence the whole cash and scrip issue. Before Bamford they had to pay out ALL taxable income full stop.

Sp from previous notice, we can assume reasonably safely that “Taxable Income” for the second half to June 30 is approximately 10.7 cents. In my view this figure has not changed.

The 12.5 cent figure referred to by sgoni is “Net Operating Cash Flow” not Taxable Income. At this point we need to ignore this and stick to the original notice. Just because we have a 5 cent distribution, it does not make that 10.7 cent figure that was announced back in April incorrect. However, the Capital Gain on Shinjuku should figure into Taxable Income somewhere. I have worked out that the capital gain is around about 3.3 cents per unit. This is yet another aspect I am unsure about. Prior to the sale of Shinjuku we knew that a distribution of 10.7 cents was on the cards and that this in turn would be based on taxable income. If we allow for the capital gain, taxable income would be around 14 cents per unit for this half.

The distribution is approximately 5 cents and that we know is a fact. I have said before that (purely my view) this would merely pay the tax you (we) all owe. We are entitled to 14 cents profit/income per unit and as far as the taxman is concerned that is what we got even if we only get 5 cents, which is the case.

The 5 cents will/should just about pay the tax bill on the distribution. I will say this though, to the best of my knowledge Australia does have double-taxation agreements with Japan so I am not sure to what extent the foreign tax credits apply to the distribution but they will probably figure in there somewhere.

Regarding your comment:

“Im of the feeling that we as unit holders are responsible for taxable income from the trust regardless of distributions given similar to mutual funds Peace Sup (mr confused 2)”

Well this is precisely what I have been saying for a couple of weeks now and I believe I have again said as much above.

No free rides from the taxman, most of our 5 cents will be eaten up, except the Capital Gain component if you have accrued losses, which I do.

ANYWAY, as far as Friday went with all the property trusts, you can rest assured BJT was the clear winner. This is a good REIT in my view. At least Babcock and Brown have a legacy.