I posted this on the CER thread a week ago.Relevant to CNP...

I posted this on the CER thread a week ago.

Relevant to CNP also

They do say they are working well towards extensions beyond 15 December.

I received a response pretty much straight away from investor services.





Would appreciate some feedback on this.

Given interest rates have fallen by 300bp since 30 June and CER's Australian portfolio is performing very strongly, arguably stronger than WDC as demonstrated below, will we see a significant decrease in yields?

In theory if interest rates decrease by 3%, then the margin between the risk free rate (or cash rate) and yields on direct property should be constant.

Yes the market has slowed down. There is no disputing that. However even if yields on commercial property increase by a massive 200bp for this half of the financial year, then we should still see a 100bp decrease in yields as the nominal rate has fallen by 3%.

This will increase the value of properties substantially.

Yields increasing by 200bp is unlikely anyway.

CER's yields on Australian property is already quite high and higher than that of WDC even though its portfolio is arguably performing better.

Would appreciate some feedback on this from Swap or any other poster for that matter.

Cheers







Thank you for your enquiry regarding Centro Retail Trust.

Unfortunately we cannot provide you with financial advice. Please complete your own research, as we cannot comment on another company's results and policies.

We continue to work well with our lender groups toward extensions beyond 15 December, and appreciate your desire for additional information. The strategic review is currently underway and covers virtually all key aspects of our operations. Therefore, it is inappropriate for us to comment further. Centro and its related entities will continue to meet their disclosure obligations.