After reading the complete KGB Interrogation I'd have to conclude that GF is not only very highly qualified in the position he holds but also extremely street smart and in this circumstance both these aspects hold equal importance.
His quote: "GR: I’ll start out with just a basic understanding of the logic of our business and then I’ll answer that. We are in the shopping centre business. It’s the open air shopping centre business. Much different than Westfield. We have in the States almost 700 shopping centres, predominantly grocery oriented. I don’t think Westfield has more than 50 shopping centres in the States. So we have great diversification by geography, diversification by tenant and diversification by various formats.
I think there’s one other important factor. Shopping malls in the United States have as a large proportion of their income percentage rents which are rents based upon sales. We have virtually none of that in our smaller shopping centres in the States so we are more diversified.
Frankly, it will take longer for the consumer issues in the United States to have an impact on our economics. As of February, our occupancies were holding at about what they were in December and our non-operating incomes (NOI) were about the same. I do expect from February going forward this year we will have some occupancy decline and we’ll have some NOI decline but I don’t believe we’ll feel much of a dramatic influence because of the nature of our diversification, our locked-in leases and not as much dependence upon sales and percentage rents."
Now one important aspect I'd like to draw attention to is that when the funders trust the company's top person, especially one that shows no hostility to them and also displays a desire to achieve the best possible outcome for all concerned, then in effect the funders have GF on their team. One very overlooked point.
With this trust and the regard they would hold for GF's expertise in his field, all this would definitely steer their reporting to very positive on the ongoing outcome for them. GF is the lynch pin here and he is one smart cookie and has a much better grasp of the business fundamentals than any of the funders, so if he is working for the best outcome and they trust that he'll deliver what better course do they have?
None.
I can smell real value in this company now and I'm holding this as an investment long term.
CNP Price at posting:
0.0¢ Sentiment: Hold Disclosure: Held
