what's next??, page-6

Depends on the 'Capital transaction'

Dilution could occur and decrease earning per share but also reduces LVR and increase the dividend that they are currently paying out.

It would decrase the potential dividends that could of been paid out had the company just been left to sought it self out by paying down debt and wait for property prices to rise.

I'm guessing the ways that management would probably tackle the debt issues are as follows.

Selling properties reducing debt and LVR.

Listing one of the trusts owned by CER e.g CWARs CFS SupperLLC. Basically selling a lot of properties in one swoop. Using that money to retire any debt to that trust and left over money used to pay off / down CER's Australian Debt.

Selling one of these trusts to an external party, with that party taking over it's debt and paying the balance to CER. This might be very attractive to some other party if they have low LVR on other properties and secure those properties against it but also enjoying a low LVR.
Cer uses the balance to pay down CER's Australian Debt.

GR stated Geographic Segregation so thats why i used these scenarios.

In each scenario, this increases chances for higher dividends in the short term eg. 4-5c a share but reduces the long term share dividend of 8-9c if they company had done nothing.

I don't think the CER would do a Share purchase plan as it would create little money at this price and would do little to Debt and LVR.

I think in most cases, some form of capital increase would increase the share price in the short term but lose the potential long term value.

Please DYOR as i'm just guessing