Land Investment Income Fund Dividends Expected Today

The Directors of Land Investment Income Fund (LIF : VSTEX) have announced a November dividend of .025 per share, payable on or before November 21, 2008. This was very welcomed, and some ways, unexpected news considering the recent changes in Openspace Policy, and was well recieved by LIF(ISE) shareholders.

Giampaolo Huldschinsky, who was recently named Vice President of IMG(ACE), was among the first to publicly congratulate the firm. "Yes great news, it is rare in this period to hear such good news!"

The LIF(ISE) was founded to provide regular income to shareholders through the purchase, development and sale of Mainland Real Estate and, to a lesser extent, the operation of residential and commercial rental properties. LIF(ISE)'s focus is on the disbursement of income to the shareholders, and pledged its intention to distribute no less than fifty percent, up to a maximum of 100 percent, of net income weekly in the form of dividends directly to the shareholders. LIF(ISE) anticipated an average, regular weekly dividend disbursement of 80-90% of net income once the Fund was in full operation.

Linden Lab policy changes, of which the Openspace Controversy is the latest, have not made that an easy task.

"Like all land operations with estate holdings, LIF holds openspace regions that are currently occupied by paying residents. The Linden increase willl be passed through to them, and will result in a substantial increase to their tier payments and dillution of our profit margin, since passing the full price change on created a monthly tier fee that was simply impossible, in our judgement, to justify," CEO Jedediah McDunnough stated in a November 4th press release. "I expect fewer than 50% - probably in the area of 25-30% - of the existing Openspace residents will remain under the new tier structure. It is our belief that the exodus from Full Estate, and Mainland regions preciptated by the offering of the Openspace region product by Linden Labs will now reverse itself. Land sales activity on Full Estate and Mainland regions will increase as Openspace regions become economically less viable to many residents. "

"I anticipate that increased trading activity in mainland parcels will absorb any shortfall created by temporary vacancies, and conversion fees, but the implications for LIF in the short term revolve around cash flow. Conversions must be paid for, tier must continue to be paid as residents transition off Openspace and back onto full Estate and Mainland sims. While it is by no means certain to occur, interruptions in the regular dividend payment cannot be ruled out, and you should prepare yourself for this eventuality."

LIF(ISE) is currently trading at L$1.18, and has an average price since 06-08-07 of L$0.83, with a total of L$0.37 dividends and a DYA(Dividend Average Yield) of 0.0264 over the 14 dividends paid since fund inception.