Hello. From UBS:
BEN will now exclude Homesafe Mark-to-Market gains/losses from Cash NPAT
BEN has announced it is changing its treatment of ‘Cash Earnings’ to exclude any unrealised gains or losses from its investment in Homesafe. It will also exclude the associated funding costs. Homesafe is a home equity release product, where senior citizens effectively sell a stake of their homes (eg 10%) in return for an upfront cash payment to help fund their retirement. BEN’s ownership stake in the house then rises over time (to reflect funding costs) with a gain/loss crystallised when the home is sold (customer downsizes or dies). Previously BEN marked-to-market its unrealised Homesafe positions through ‘Cash Earnings’, reflecting movements in Melbourne and Sydney house prices. Going forward only realised gains/losses will be recognised.
