26 percent income tax deferred, page-3

ok thanks for that.
i guess their income is very solid but the assets can change in value significantly.
so good point. so what happens if the assets are written down ???
does the income stop?

cheers

from annual report
Observations and Outlook:
> Volatility in capital markets is high – US residential subprime market has been worst affected, but commercial real
estate and the corporate markets are now also experiencing widening credit spreads
> In the case of commercial real estate, widening spreads reflect liquidity contagion rather than fundamental problems
– CMBS delinquency levels are at historical lows
> RAT’s CRE loan portfolio is relatively well protected:
– most of the CRE loan assets were established in 2006 and prior when asset prices and rentals were lower –
benchmark price indices of earlier vintages have performed much better than 2007 vintages
– most of the recent loans have been lower risk whole loans and B notes which have superior LTV and ICR
ratios
> Very attractive opportunities could emerge to acquire assets that are more appropriately valued than the past 6 - 12
months
> To take advantage of these opportunities we will continue to:
– enhance the value of existing assets – lease renewals, rental growth, improving LTV/DSC ratios
– market RAT locally and internationally in order to correct the weak stock price and high cost of capital relative
to peers