my revised nta calc arrives at 1.711, page-21

That's interesting Aras.

CFS' cap rates have softened by 2.4%.

CER only has $2.1b in Australian assets so a 5% drop is not all that significant.

Few other things I would like to point out that has not been brought up as yet:

After last week's announcement by CER, it appears nothing has changed since pre 17 Dec 2007. Now if CER made an announcement last year that unlike CNP they managed to have their SuperLLC debt refinanced for 3 years until Dec 2010 with no dilution of capital (same maturity date as last week's ann), what would the share price be today.

I doubt the share price would have collapsed last year in Dec and I doubt the share price would be 5c at the moment.

If you refer to the FY08 results ann on 29 Aug (page 2), CER mention they have a total of $1.98b of debt maturing by the end of the year. $1.1b for extension facilities and $880m of additional borrowings.

Now what does the $1.1b that was extended from 30 Sep 2008 to 15 Dec 2008 and is now subject to further extensions (refer to 16 Dec ann), consist of? The supplemental report on 29 August shows these extension facilities as follows:

$664.7 - Bank Bridge Loan - Super LLC
$21.8 - The centre at Preston Ridge - SuperLLC
$252.3 - Revolving credit facility - Super LLC
$107.3 - Galileo America LLC - Non super LLC
$44.7 - Southland Shopping Centre - Non Super LLC

Total: $1,090million

There was $361.7m due on 1/10/08 for Centro NP Residual Holdings. This was Super LLC debt.

As this does not make up the $1.1b that is now subject to further extensions we can assume that this $361.7 has been refinanced successfully as we have not heard otherwise. Also there was a $370m cash advance facility due on 2 Dec 2008 that we can now assume was refinanced successfully also as we have not heard otherwise.

This is pretty significant as SuperLLC debt that was due on 1 Oct in amount of $360m has been refinanced successfully yet no announcement has been made.

Also a dividend ann will not be made in June. IMO a policy will be announced 15 January 2008. The FY08 results ann says as follows:
CER has suspended earnings guidance until the outcome of the recapitalisation process is

known. As part of this process, policies are being initiated to provide sustainable

distributions which will relate future distributions to available cashflow.


I have no doubt a dividend policy will be announced at this time.

When you break it down, CER is in a much stronger position financially than it appears.

I currently have 100% of my portfolio in CER and very comfortable with this.

Cheers