And the Gobster, as usual, has NFI at all:-

And the Gobster, as usual, has NFI at all:-

Borrowing hike looms for LPTs

LISTED property trusts face higher borrowing costs when some $6.8 billion in short-term debt comes up for refinancing next year, according to Craig Parker, primary credit analyst with Standard & Poor's.

Colonial First State Retail Property Trust recently raised $600 million but no other LPTs have tried to raise debt since July, because of market uncertainty.

In a report on the Australian LPT sector, Mr Parker said bond spreads in the US real estate investment trusts (REITs) market had widened by roughly 80-90 basis points in the year to date.

The Australian listed sector has a total outstanding debt of $36.9 billion. S&P said Goodman Group and GPT were facing the most immediate refinancing pressure.

Goodman Group's total debt rose from $2.2 billion at June 30, 2006, to $3.9 billion on June 30, 2007.

About 7 per cent of Goodman's debt is secured, and about 45 per cent is short-term bridging financing, scheduled to be refinanced with capital market issuance in the current year.

While GPT was also facing substantial debt maturities in the next 12 months, S&P analyst Paul Draffin said GPT had a number of capital "sources at its disposal" including accessing third-party capital through its funds management platforms, and direct equity raisings. GPT is currently seeking a new E1.5 billion ($2.4 billion) syndicated debt facility, expected to be finalised in the next few weeks.

Mr Parker said rising interest rates would pressure future earnings of the LPT sector, which had enjoyed favourable rates in recent years.

When interest rates were low, some LPTs paid out more than 100 per cent of their earnings to unitholders, boosting the distribution by borrowings.

Mr Parker said that policy had been reversed because of higher interest rates.

Together with the higher cost of debt, the new policy would mean unitholders could expect lower distributions in future. [emp. added]
http://www.theaustralian.news.com.au/story/0,25197,22591170-25658,00.html

Hmmm...what did I say after the profit announcement came out two months ago?...Oh, that's right:-

Subject: re: best financials released so far
Stock Code: ALZ - AUSTRALAND PROPERTY GROUP
Posted: 05/08/07 22:46 Hotcopper Radio: ALZ on BoardRoom Radio
Posted By: TheWord Views: 68
Post #: 2006592 (In Reply to msg #2006537 from Goblin) Sentiment: Sell
IP: 220.237.xxx.xxx Voluntary Disclosure: No Stock Held
$ Yield hasn't changed in 2 years, Gobbo - latest report said so. Entire profit increase due to unrealized asset revaluations.

If it can't increase its realized yields in this environment, how many more years can you wait for it to happen? What happens to a company that doesn't increase its real cash profits?

High debt ($1.4bn); high forward project commitment (ie. more debt); World-wide credit crunch; ever higher labour & material costs on new developments.

[Been preparing and reading financials since before you were a dark spot in your father's eye, Gobbo. I fully understand why companies are required to produce cashflow statements these days. It lets you sort out the paper and the real profits.

BTW, I'm curious - does your company's management get rewarded based on realized or reported net profits?]

Is this the best you can do, Gobbo? Hahahahaheeeeeeehhaaaeee....oh, stop it! You're killing me!

NFI