leverage

I agree,

People are forgetting leverage works both way.

It seems Cer believes they have written their properties down too far.

Australian properties Dec 07 Capital rates 5.99%
USA properties Dec 07 Capital rates 6.07%


Australian properties june 10 Capital rates 7.47%
USA properties jun10 Capital rates 8.54%

In the last 2 and half years property valuations have dropped around 20 percent in Australia and almost 30 percent in the USA.

Property always eventually surpasses it's previous high but in this senario i want to illustrate an increase in property of just 10%

This is a very realistic figure and means A million dollar property is bought or re-evaluated at 1.1 million So very realistic and no where near the prices of the highs of 2007.


However just a 10 percent rise does not mean a 10 percent rise in NTA or shareprice.

@june 2010 (things have changed as we have less hedge liabilities)
Total value of Portfolio was 6.957 billion

Liabilites = 6.19 billion (this figure is less now due to hedges.... read recent announcemets)

net assets attributable to members was 765million or 33.5c per share.

If propertes were valued or bought at 10 percent above the last valuations done 6 months ago here is my calculation.

property portfolio 7.65billion
Liabilities 6.19 billion

NTA = 1.46 Billion or NTA per share = 64c per share
This figure does not include the money we would get back if CNP gained any equity in superllc due to their negative equity in superllc.
This figure does not include the 5c per share that was announced about hedges been closed of that puts our nta at currently 38c.
This figure also does not include any money earned or debt paid down since june which would add another 3c - 4c to NTA.

As it stands our NTA from the last announcement is around 38c per share.
Most people are still not aware of the extra 20 - 25c that we have in equity that is written down as 0 to give cnp equity for the banks.

Please do your own research as I am not a professional and my calculations are very rough. Feel free to correct me as this is my learning purposes also. There is probably a lot of mistakes in here.