WOW contributed over $15m rental income to CER in the last year.
This is about equivalent to what Kroger (CER's no 1 US tenant) has contributed to CER's bottom line. (Refer to latest supplemental)
ABR in Australia is around $135m (pg 5 supplemental) and in the US its about $468m (pg 18). While obviously the majority of income is derived from the US, a significant amount is still derived here.
Its not just about the income. Its also about the fact that WOW or Coles is generally the centrepiece tenant in alot of the community shopping centres. Increased revenue/increased foot traffic generally is good for the tenants surrounding the supermarkets. Should help stabilise occupancy levels within Australia at current levels, which ironically happens to be at 99%!!
Remember CER's major tenants in both Australia/US are non-discretionary. WOW reporting higher non-discretionary sales bodes well for other non-dicretionary retailers in Australia given the economic climate we are in
CER Price at posting:
9.9¢ Sentiment: Buy Disclosure: Held
