worst case nta/share estimate

per June 30 08

AUD1.43bln of rental properties
AUD1.3bln of indirect property investments
121.1mln of cash
intangibles of AUD558.9mln (ignore this)

Total liabs: AUD1.67bln (of which Bank debt: AUD1.346bln)

total shares on issue: 1608mln

(1.43bln +1.3bln)*70%+121.1mln-1.67bln
-----------------------------------------------------------
1608mln

A 70% discount rate is assumed to the book value of properties, and no goodwill value is assumed, on this basis, NTA will be 22.5cents/share

=22.5c/share


I wouldn't expect Australian properties value to depreciate by that much. Even the recent VCS forced sale received 78% of book value.

If we are paying significantly below that, why should we worry?