quick analysis of march qtr report

Points to consider:

March 2009 sales v March 2008 sales is up 1.1% for US grocers.

66% of CER's GLA is grocery anchored. Refer to pg 11 of portfolio assessments report 28 Feb 09.

This is at the heart of CER's strategy.

CER's assets are non discretionary and are resilient in times of economic downturn.



Rental growth in both Australia and the US are exceptional.

5.8% in Australia and 3.2% in the US

WDC reported growth of only 0.3% for the March quarter.

Refer to page 4 of their quarterly report. 30 April 2009

Other things to note, occupancy in Australia is pretty much at 100%.

I cant see this changing at all.

Retail sales have soared in the last month or so thanks to the stimulus package

Please see article below

http://business.theage.com.au/business/cash-splash-lifts-retail-sales-20090506-aumg.html



NOI has decreased by 2% in the March quarter in the US

This is attributed to not only the decrease in occupancy levels but also the fact that properties have been sold which will naturally decrease NOI

What NOI doesnt take into account is the cost of debt that will be saved as a result of the properties being sold

A 2% decline is a great result.

Also have a look at the leasing deals that have been made in the March quarter.

A total of 1068 leasing deals vs 658 for the quarter before

This is a credit to the Centro management team to successfully sign up 1068 leasing deals during the quarter given the current economic climate.

Many of them probably came up for renewal but to achieve growth of 3.2% on renewed leases is a credit to them

All in all its looking great for CER

Cheers