net loss 867.7m in fy08

Sydney - Friday - August 29: (RWE Aust Business News) - Centro
Retail Group (ASX:CER) reported a net loss of $867.71 million for the
year to June 30 2008, compared with a profit of $266.58m in FY07.
Revenue was $215.92m against $127.98m.
Centro Retail said, after adding back non-recurring and non-cash
items, distributable income was $256m, representing 13.25c per security.
The loss is mainly attributable to non-cash items
including an $883m write-down of property investments and a $317m
impairment from investment in Super LLC.
CER has suspended earnings guidance until the outcome of the
recapitalisation process is known.
The CER portfolio grew substantially in FY08 as a result of the
merger with Centro Shopping America Trust in October 2007.
The portfolio is now comprised of 452 assets valued at $8.3
billion, which represents growth of 57pc by value.
The overall portfolio, both in Australia and the US, is dominated
by the presence of supermarkets and other non-discretionary type
retailers.
Over 66 per cent of the centres in the US and all centres in
Australia are home to at least one supermarket.
The US portfolio accounts for 76pc by value of total assets and
the top three retailers are The Kroger Company, The TJX Companies and
Wal-Mart Stores.
The Australian portfolio generates retail sales of over $4
billion annually with over two thirds from supermarkets and specialty
retailers. The top ten retailers operate over 40 store concepts and
account for 32pc of rental income in the portfolio.
As at 30 June 2008, Centro's negative equity was $317 million and
CER has impaired its investment in Super by this amount in recognition of
this exposure.
In the event that CER were unable to recover any of its
investment in Super LLC, CER's maximum exposure to Super lenders would be
$650 million.
Of CER's current Net Tangible Assets of $1.27, Super represents
28c per share.