Ann: Dividend/Distribution - SCG, page-15

I dont think from recollection I have seen such homework done in HC....well done gentleman...love your work...if I could wade in...

Lets not forget Net tangible Assets, book values reduced by about 11% in 2020. Scentre is yet to announce its valuations for the half.

At current pricing, the market is factoring in a further 15% and 21% decline in book values, respectively as an over reaction lets say for argument.
The catalyst for a bounce would be signs of re-opening or a turn in daily cases.
Lockdowns have a short-term impact on stores trading, in turn affecting sales and therefore rent collection.

So why is liquidity a concern ? Or am I reading your underlying concerns incorrectly ?

At the lows in April 2020, cash collection for Scentre dropped to 28%, then 35% in May and bounced back to 80% in June.
At 30% collections, Scentre is only ‘burning’ $4m per week as I stated in a previous post.

Lets say we have a 6 month lock down...it would be only about $100m of cash burn, which is minor relative to an asset base of $33bn and close to $7bn in liquidity.

There is ample room for diversification into lets say health and other essentials or deemed to be that they have mooted in venturing into...

These boys that run the show are the best in the bussiness to say the least...the Real Estate is irreplaceable...lets get away from a thesis of a T/O and im dam sure the ruler is being run over that scenario...todays pricing ratio is well below NAV and producing good income...with scope of further diversification.....I see more up side in years to come....