Ann: 2018 Half Year Results Presentation, page-32

OK - a fair bit of off topic nonsense is being posted on this string (I'll reply to some of these separately) ... when there are real issues to discuss re: CTX's announcement that aren't being delved into at all, ie.

Why are CTX considering floating their property portfolio? When doing this ...
- makes development more difficult etc. see my post on other string
- triggers massive capital gains liabilities - many of the sites were purchased >50 years ago and have tax base values effectively zero for the land component. Therefore, up to 30% of the cash will be lost in tax when the property is transferred to a trust.
- results in a large stamp duty liability of ~5% for the trust (more cash lost)

To consider this they must need the cash really badly - it's was a complete fantasy by madamswer that they would do this to give cash back to shareholders. And as far as returning franking credits?? The massive tax bill would generate more of them!

CTX have now finally stated that it doesn't make sense and wouldn't give them any free cash. Makes me wonder why it took longer than a 15min back of the envelope calc for them to realise this tho! The fact that CTX is considering such a transaction at all worries me about their borrowing capability. Seems that this concern is lost on most posters amongst the fantasies of cash being returned. Ohh - and the surprise that the dividend was cut.

So why a partial sale? This will enable them to select which properties that they will sell and generate the least amount of cash lost in the transaction on a %'age basis, eg. the most recent land purchases and developments. And by being a smaller sale, it'll of course be much lower cost on a total basis. Makes more sense than a complete sale - but still I ask why?

IMO for this to be considered at all by CTX - their other funding options must look absolutely terrible! And, that they think the only thing keeping the share price up is the dividend, so they've made the smallest cut possible.

I'll be sitting on the sidelines watching play for now.