Yep it sure is just the start. Great thing is there has been...

Yep it sure is just the start. Great thing is there has been zilch diltion of capital and immaterial sale of properties. Most of us knew from few years back that dilution risk was close to zero because of CNP's 51% direct/indirect interest in CER that it couldnt afford to lose.

Apart from tremendous upside in US, higher occupancy rates, higher rentals and lower cap rates, the Aust portfolio should see cap rates at the very worst stable for Dec10 and continued upward pressure on rent because of 99.5% occupancy rates and solid turnovergfrowth by the majors.

Also, a few of the Aust debt refinancing it did late last year was at quite unfavourable terms, especially the one with Mac bank. When these come up for refinancing, the demand to purchase CER's debt will drive margins down. CER's LVR should be much higher by then.

Much much to get excited about.

I wonder if Goldmans will ever cover CER again. Their last recommendation was a sell after the Feb09 HY. Unit price was 4.5c back then, lol

Cheers