Adds,The following numbers are a bit rough but me splitting...

Adds,

The following numbers are a bit rough but me splitting hairs won't change the conclusion.

IIF stated that the reduction in the distribution will save $120 million pa and reduce the TLR by 2.0% pa.

That would represent payout ratio of approx 25% (say 4c/16c) and like you said, was based on a SP of $0.40.

Savings of $120 milion / 0.75 applies $160 million in total distributable income in 2009. (based on 25% payout ratio)

If (and I stress IF) you adopted an average share price of $0.15 over a whole year.

That would mean 1.5c/16c or a payout ratio of 9.4%, saving 90.6% of income.

0.906 x $160 million = $145 million pa

$145 milion - $120 millions = $25 million pa better than expected.

But that's only $6.25 million for a Quarter.

I'd say the difference is too small to worry about.