centro scraps half year distribution..., page-2

Source: www.news.com.au/heraldsun

No Centro Properties pay-out for second half
June 19, 2008 03:58pm

CENTRO Properties Group says it will not pay a distribution to ordinary securityholders for the second half of 2007/08.

"CPT Manager, as responsible entity for the Centro Property Trust and Centro Properties (Centro), will not be paying a distribution to ordinary securityholders for the six months ended 30 June 2008,'' CPT said in a statement.

CPT said under the terms of Centro's constitution, an amount equivalent to the trust's taxable income was required to be distributed, but no taxable income was forecast for 2007/08.

"While Centro expects to record an operating distributable profit for the year, it has incurred significant non-operating refinancing and adviser fees,'' CPT said.

"In addition, Centro's financial arrangements are such that it is not in a position to fund a distribution.''

Centro expects to report its annual results on August 28.

But Centro Retail (CER) said today it expects to make a second-half distribution of about 1.4 cents per stapled security to securityholders.

Centro MCS Manager, the trust's responsible entity, said that equated to about $32 million, being the estimated taxable income of the trust.

Under the constitution of Centro Retail Trust, it is required to distribute its taxable income.

"CER has determined that it is not prudent to declare any distribution for the period beyond this amount,'' Centro MCS said.


Ends.

Cheers, Pie :)