Ahh yes, I only subtrated one side of the equation so to speak so 5.46% sounds about right and better. I still think it's quite manageable. Good info in the sheet and we could reasonably say that rental income isn't going to drop by anywhere near 58%.
One thing though, from the data, some of the larger centres (by value and therefore rent) are the ones that have Goody's, Linen N Things and Circuit City in them. My concern would be (admittedly knowing very little about these businesses) is that if they are anchor tennants, this "privileged" status affords those CER centres status also as a "Destination of Choice" i.e. The reason you might go there in the first place.
Eg: I go to my Local with the missus almost exclusively to go to Woolies. I don't go there for any other reason. Whatever else I happen to buy or whatever other shop I go into is incedental (acidental?).
Interested in thoughts on the flow on effects in these Centres and what it could mean for other retailers in CER centres.
Sure CER could replace these tennants with lots of little shops but this is less than ideal.
CER Price at posting:
5.7¢ Sentiment: None Disclosure: Held
