cer currently trading at cap rate of 9.1%

Hi Guys,

The situation further amplifies how disgraceful the situation is:

Current market cap $644m (assumes 28c share price and 2.3b shares on issue)

NTA as at 31/12/10: $943M

Value of Aust portfolio as at 31/12/10: $1.64b (31 Dec 10)
Source: Page 19 HY Presentation

Weighted avg cap rate 31/12/10: 7.52%
Source: Page 19 HY Presentation

Therefore NOI is: $123M


Diff between NTA and current valuation: $299M


Therefore, if the portfolio were liquidated and we were only to realise the current valuation of $644m (28c per share),

the portfolio would be liquidated at $1.34b, a discount of 18.3%,

and a cap rate of: NOI $123M/Prop Value $1.34b = 9.2%!!

The market is currently valuing our portfolio at a cap rate of 9.2% alongside a gearing of 40%.

WRT's weighted avg cap rate is only 6%!

Mind you, NTA should be higher for 30 June 10 as the cap rates on the Aust portfolio should have levelled off at 7.5%, which means the value of the portfolio should increase by the increase in NOI during this period. A 4% increase for the full year equates to a 2% HY increase, so Aust portfolio should have increased by $1.64b x 2% = 33c or 1.5c NTA

Not sure if you have visited the website but the more numbers on there the better.

Cheers