CER?s NOI was dragged down by the substantial amount of management fees that was funneled out to CNP. The pending demise of CNP, will increase CER?s NOI in this regard.
Also you have to remember that the NTA of 41c is a look back NTA, not a look forward NTA.
CER?s Aust portfolio has over 99% occupancy and solid rental growth of 4.4%. Cap rates are very very high. Even if cap rates remain the same, the Aust portfolio will be valued upwards at a minimum by approx 2.2% in this HY (4.4% / 2).
Also as I mentioned in a few posts, if a merger between CER and the unlisted syndicates eventuate, I am sincerely hoping that it is done at the expense of the syndicates purely for the fact that they should a pay a premium for liquidity. As we know, you cannot underestimate the importance of having liquidity in your investment.
Anyway could go on forever but please feel free to cycle through recent posts on here :-)
Cheers
CER Price at posting:
36.5¢ Sentiment: Buy Disclosure: Held
