The following exhibit presents an excerpt from the annual report for the year ended 31 March 2009 of Daejan Holdings PLC (London: DJAN), a property company headquartered in the United Kingdom.

EXHIBIT 10-11 Excerpt from the Consolidated Income Statements at 31 March (Currency in £ thousands)

2009

2008

Gross rental income

83,918

73,590

Service charge income

12,055

13,362

Total Rental and Related Income from Investment Properties

95,973

86,952

Property operating expenses

(53,470)

(46,464)

Net Rental and Related Income from Investment Properties

42,503

40,488

Profit on Disposal of Investment Properties

6,758

6,578

Valuation gains on investment properties

6,646

46,646

Valuation losses on investment properties

(268,249)

(25,982)

Net Valuation (Losses)/Gains on Investment Properties

(261,603)

20,664

Administrative expenses

(12,039)

(8,629)

Net Operating (Loss)/Profit before Net Financing Costs

(224,381)

59,101

1. What was the primary cause of the company’s £224,381 thousand net operating loss before net financing costs for the year ended 31 March 2009?

2. What was the primary cause of the company’s £59,101 thousand net operating profit before financing costs for the year ended 31 March 2008?

3. What was the primary cause of the change from a £59,101 thousand net operating profit in 2008 to a £224,381 thousand net operating loss in 2009?

4. Do the valuation gains and losses on investment properties indicate that the properties have been sold?