Todays ann should have done a lot to pacify the masses, and I...

Todays ann should have done a lot to pacify the masses, and I expect a big open tomorrow too, with a rise back to or close to $2 by the end of the week.

19 December 2007
Centro Market Update
Centro Properties Group (“Centro” or the “Group”) makes the following comments about
trading in its securities and some theories expressed by research analysts:
�� There is no clause in any of Centro’s or Centro Retail Trust’s (“CER”) financing
documentation or loan covenants that would trigger a default if either entity’s market
capitalisation falls below a certain level. Neither Centro nor any of its managed
funds are in breach of any lending covenants;
�� Centro management and external financial advisers, as well as the advisers of our
financiers, closely examined the cash flows of the business. On the basis of that
review, Centro is comfortable about the ongoing viability of the business and would
not allow its securities to trade if this were not the case;
�� In refinancing the short term maturing facilities and ultimately reducing the gearing of
the Group, Centro has a number of options available to it including sale of interests
in managed funds, joint venture of assets, asset sales and/or equity issuance; and
�� Centro is not obliged to take any specific course of action over the next eight weeks.
What is required is the development of a strategic plan or road map to successfully
operate the Group on an ongoing basis.
As the second largest shopping centre owner in Australia and the fifth largest in the US,
Centro and its funds own over 800 individual properties that can be sold. The Group
reiterates that it is not under any obligation to sell assets and would only do so selectively if
necessary.
If asset sales are decided upon, whether in Australia or the US, Centro will look at
selectively divesting assets that will allow it to repay short term debt while at the same time
preserving securityholder value.
In evidence of this, one of Centro’s managed funds, Centro MCS 38, last week completed
the sale of The Mall at Cross County in Yonkers, New York for US$78.3 million, 30% above
book value and 34% above the original acquisition price of US$58.5 million.
The underlying business of Centro, retail property ownership and management, continues to
perform strongly. As a result, Centro has forecast distributable earnings of 40.6 cents per
security, although the Board has deemed it prudent not to distribute the earnings for the first
half of FY08. A decision on future distributions will be made as part of the strategic review.
Subject to refinancing occurring and the outcome of the strategic review, the Board will
determine if the lack of a first half FY08 CER distribution is a cancellation, a deferral or if a
special distribution may be paid prior to the end of the financial year.
ASX/MEDIA RELEASE
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For Further Information:
Mr Andrew Scott or Ms Philippa Kelly
Chief Executive Officer General Manager – Institutional Funds Management
03 8847 0033 03 8847 0136
0419 548 068 0402 021 413
About Centro Properties Group (ASX: CNP)
Centro Properties Group specialises in the ownership, management and development of
shopping centres. Centro is Australia’s largest manager of retail property investment
syndicates with over 80% market share as well as being a leading manager of direct
property funds and wholesale funds which invest in Centro’s quality retail properties in
Australasia and the United States. Centro has a market capitalisation of $6 billion and funds
under management of $26.6 billion. Centro continues to maximise returns to investors
through its customer focused and value adding team based approach.
Please visit www.centro.com.au