Redmoon, I can't agree with your statements for the following reasons;
1. Some of the sales would have been reflected in the last profit results on which the dividend was based.
2. There may not be as much reduced income as you suggest because most rents will be increased. Most commercial leases have automatic CPI increase clauses. This increase will offset a lot of the income lost from the small percentage of assets sold.
3.Interest payments will be reduced overall,not just because of asset sales. Interest rates have fallen considerably since the last period results. Because of the problems faced with refinance I suggest that CER was paying penalty rates during the reneotiating period.
4. There would have been considerably bank charges and other costs such as legals associated with the bank negotiations that will not be repeated.
5. CNP will have need for income from CER as the need to repay loans has become much more important for CNP than for CER so CNP will be wanting maximum dividends from CER.
6. I'm sure that creative accounting was used to the maximum during the last period to retain the maximum amount of income for loan repayment. This is not so important now.
I'm not suggesting that 2c will be paid but I suggest that it is reasonably possible. I also suggest that at this stage the value in the SP for CER should be based on the NTA and the potential in the near future to pay good dividends. The tennancies appear to be solid and income sustainable. That is why I am investing long term.
CER Price at posting:
10.5¢ Sentiment: LT Buy Disclosure: Held
