some interest today, page-6

the last time i looked the trust had $1.3b worth of property and $750m in debt, ie $550m equity or a gearing ratio of 56%.

so if the total portfolio falls by 25%, then the portfolio will be worth $975m and have $750m in debt, so equity of $225m. with 550m units on issue that gives an NTA of around $0.41 and a gearing ratio of 77%.

if the portfolio does fall by 25% the it will be in breach of its loan covenants and some properties will have to be sold. so even if properties are sold down and they manage to sell the whole portfolio for 25% below its current book value unit holders should still be able to walk away with around $0.40 per unit, not $0.065.

the market is currently pricing in a fall of 40% in the property values. clearly this is not going to happen so you have to ask yourself why the fund managers have sold the unit price down so much.