welcome to charter hall retail, page-4

Welcome Charter Hall
I too am an optomist and hope for the best with the change to CQR.
But after watching the recent video of 1/2 yearly report and the most recent notices on aquisitions etc I am a little concerned re a couple of issues.

1. Reference was made to reducing the LVR (under MCW recent management) to around 36+% (good) from what was around 60+% and that any aquisitions would be funded using accumulated funds and the existing banking arrangement (within the LVR guidelines).What are the guidelines?

2. How can we be assured that CQR when increasing properties under management (and subsequently their fees and hopefully our future divs) are not increasing our debt again as in the times past? What are the debt parameters/guidelines for debt?
At question time when asked to spell out details re this issue,the answer was "no set limit" All a bit fuzzy for me and not as transparent as I would expect from an RE in post GFC times.

3. Two recent acquisitions, Adelaide & ACT are fine on the surface (return 9.5% etc). But the Adelaide purchase , a bulky goods store marks a swing in a new direction, eg MCW was founded on large shopping centres achored by a super store tennant (Coles/Woolworths etc) which are defensive assets which usually continue to perform well in difficult times. Bulky goods outlets are usually the opposite in that in they usually suffer as discrecionary spending is directed to food/ survival etc in difficult times.
Again at the meeting the issue was raised and mentioned as a future opportunity for the Trust.But once again no details are available as to how far is this change going.(parameters etc). It certainly is indicative of a change in strategic direction.
Shareholders need to know the rationale & parameters in order to make informed decisions.

4.In recent media articles it was mentioned that CQR may purchase some properties from Charter Hall which they wished to divest. Only a media article, but if true then perceptions of Conflict of interest aside, and being an optomist, lets hope that, if true, then there is clear transperancy and genuine value for CQR shareholders and not just the CH shareholders.

These issue aside, I believe the trust has a good future and CH have been given a clean slate and now have an opportunity to exceed shareholders expectations regarding governance ,practice & performance.
Lets hope they at least meet our expectations.