CER have a margin account which is at over 150million.
They are charged 1.75% interest on this account. Once balance is brought down to to $50million they will be able to pay a distribution.
Everything still hinges on Centro finding buyers for its US retail properties.
Centro realistically needs to offload a few billion in property assets to be viable.
The one good thing in this outcome is the income from US will be larger in AUD.
Basically the next lot of income will be used to pay down a short term debt facility.
Once that is achieved a diviend will be likely, very likely. However for CNP holders will not be receiving a diviend for who knows when.
Property write downs will hurt CER but looking at returns on investment in bonds and stockmarket buying a shopping centre will pale in comparison.
CER have a margin account which is at over 150million.They are...
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