I do not think the dividend is at risk, because Management...

I do not think the dividend is at risk, because Management stated that it wants to return to the earlier dividend level that was higher. Obviously, things can happen to put the dividend at risk, but this is a question of probability, not possibility.

Downward valuations of assets do not themselves impact cash flow. Obviously, if assets are devalued because the cashflow has declined, then the latter matter could impact dividend payments. Rental properties may be devalued simply because there is a defensible basis to do so (a professional valuation based on similar properties in that area), but that does not mean that rentals paid to FRI decline.

I have not researched the matter, but apartments built for resale are rarely impaired, because the spread between the cost of the apartments and their sales value contains a margin that would cover reasonable deterioration of selling prices. The deterioration may impact the settlement prices, and thus be reflected via the recognition of a lower profit on settlement than expected. The ATO, I would think, would only allow impairment to be tax deductible if the edifice in question dropped to a value below its cost.

FRI's accounting treatment of apartments built for sale only recognises the growing asset as its costs are incurred, so it is simply a balance-sheet matter (credit the entities who supply the construction and other services, and debit the asset at that cost). Subsequent payment to the creditors is also a balance-sheet matter (credit cash at bank, and debit the creditors It is only on settlement that the revenue is recognised, and the spread between the cost of the asset sold and the price received is recognised as a profit. Consequently, it is the settlements that one should watch, because they determine NPAT and cash inflows. The lag between project completion and settlement can allow a generous dividend to be paid in the next financial year for a poor-NPAT year, provided the money is collected before the dividend is paid. A small gap in timing could, if Management wished, be covered via a bank loan.

This post is off the top of my head, so read it with caution, and check out its correctness yourself.