I don't believe there are 'poor performers'. Poor performance would be where there are vacancies etc.. So really it may be poor asset value in certain markets (US compared with AUS) if sales were to be made now. However, with a longer term approach say 5+ years, there could be a turnaround achieving book value or higher. So as long as loan repayments are being made, with acceptable LVR's, no reason why CNP cannot be a viable business. I would be more concerned with debt servicing, asset sales should only be made where necessary, if the centres are not 'performing' then that is a separate issue.
One way could be to think of as negatively gearing, the idea is you are looking at capital growth to maximise returns. Growth may not be occurring at the moment and comes and goes in patches. But over time you would say there is an uptrend. So if you are achieving high rental yields, in good locations, get through the rough times, and there will be light at the end of the tunnel at some point in time.
CNP Price at posting:
0.0¢ Sentiment: Hold Disclosure: Held
