Extract from Australian available on the intranet shows that property prices have risen in the past 12 months in Australia. CFX had a $120mil valuation gain, so CNP/CER should have a gain of multipe time as they have much more properties.
The Australian states:
"I don't expect much variation to the guidance provided by the trusts. If they were different, they could be slightly up," a European investment bank portfolio manager said.
"A feature of this reporting season will be stabilisation of asset values. Some trusts have reported higher revaluations," Phoenix Portfolio principal Stuart Cartledge said.
The $7.7bn Colonial First State Retail Property Trust (CFX) reported a $120m valuation gain and the Commonwealth Property Office Fund recorded a 12 per cent increase in its revaluations at June 30.
Asset writedowns were the main reason for the top trusts' collective losses of $21.5bn in 2008-09.
JPMorgan property analyst Richard Jones said the trusts would try to extend their debt expiry dates to move away from short-term debt.
CNP Price at posting:
19.5¢ Sentiment: Buy Disclosure: Held
