9. If centro fold, the entire commercial property market will be forced to mark-to-market, LVR's will be substantially increased across the board. ie. westfields, stocklands, mirvacs, etc etc list goes on, ie banks will have even more problems.
10. Majority of centro is anchored by non-discretionary spending (more recession proof), woolworths/coles etc
11. Rent increases from CPI
12. Shopping centres are not easily replaced
13. Mgmt team consistently have stuck to their guns, has never been any panic selling/firesales...
14. Strong/experienced leader GR at the helm (has been in similar boat with K-Mart in the US, and pulled them through)
15. From the beginning GR said they have lenders support, and they would keep an honest and open relationship. I'm pretty sure this is still the case.
16. Apart from asset write downs (non-cash items) and one-off extraordinary expenses, centro are operationally making profits.
17. The economic cycle will turn around sooner or later, just a matter of how long.
18. If Centro can pull through, you can bet they will never make the same mistake again, and will be stronger for what they have gone through.
CNP Price at posting:
7.5¢ Sentiment: Hold Disclosure: Held
