CNP - Centro Properties Group

[drsmith]

The problem for shareholders is that if it's assets were sold in the present market there would most likely be a deficit between borrowings and the proceeds of sale. This ground has to be made up before any value can be restored for shareholders. At least time offers the hope that the above ground can be made up with an improvement in economic conditions.

With regard to profitability I'm interested in commentary as to why the banks have agreed to capitalisation of interest on the $1.05b of preferred equity rather than the ongoing interest payments.

I don't have a holding in Centro but I do have a holding in Westfield. I feel GR has done the whole LPT sector and perhaps the banking sector a favour by preventing a bank fire sale of Centro's assets at the present time.

 

[tigerboi]

Re: CNP-shareholders now nothing but peasants

Why would this be a long term hold?people should read the details...banks are getting 90% which means???

they can compulsory takeover your shares.

reckon this is a worse deal than a fire sale...tb

 

[thunderer]

How to interpret this?

http://www.costar.com/News/Article.aspx?id=412A4004754521AD724E4E1A9B98A987

It seems banks are doing whatever they like now.

 

[drsmith]

It would be interesting to know what Centro's carrying value of that centre was.

Taking a quick look at CNP's and CER's most recent annual reports I could not see a breakdown of the carrying value of the individual centres.

 

[oldblue]

How to interpret this?

http://www.costar.com/News/Article.aspx?id=412A4004754521AD724E4E1A9B98A987

It seems banks are doing whatever they like now.

I interpret that as being what the market for these properties is in the US at present.
The sale price was quoted as 40% below replacement cost but note that the centre had recently lost its anchor tenant and was only 85% let. Not a great time to be letting commercial space!

 

[andione1983]

Any chance this is a good sign today for Centro thats its Manager has been resigned for another year?

 

[andione1983]

i see Centro in the USA has just sold 3 propertys, one for 6.5mill, one for 12.5mill and the other for 8mill or so? is this a good or bad thing?

 

[Lucky_Country]

Good news GR has saved SNP from going under now he can rebuild and we will all profit !!!!

He will be happy based in the USA and may even be better for the company afterall alot of the resource CEOs spend more time in the UK than AUS !!

 

[Aussiejeff]

CENTRO Properties Group has reported a $2.4 billion first half loss as the shopping centre owner was hit by falling property values, slumping derivative values and losses from the movement in exchange rates.

Centro's net asset value declined to negative $346 million according to the results which incorporate both Centro Properties Ltd and Centro Property Trust, the Melbourne-based company said.

http://www.news.com.au/business/story/0,23636,25108766-14334,00.html

How will this worrysome bottom line affect expected extensions of bank credit?

 

[oldblue]

i see Centro in the USA has just sold 3 propertys, one for 6.5mill, one for 12.5mill and the other for 8mill or so? is this a good or bad thing?

That depends on whether they sold the properties for more than or less than their valuations. I havn't seen any detail on this but provided the sale prices were close to valuation, and that the valuations hadn't been heavily reduced recently, it should probably be viewed as a mildly " good thing ". The amounts aren't very significant in the overall situation and the latest reported loss.

 

[oldblue]

I see that in the midst of all the red ink reporting the first half loss of $2.4b, the company says they sold 36 US and 6 Aust assets for $482m during the period at a 7.1% loss on the book value as at 30 June 2008.
Not too bad in the circumstances, IMO, although the risk is that they have sold the most attractive and easily sold assets so far.

 

[ricee007]

Holy hell...

CNP indicative price of $0.10!!!

Wow. 250% climb from the bottom...

Anyone know why?

 

[ricee007]

On 4th may, it was 6.7c, now it's 12c on the 7th May...

It went up 25% yesterday...

Then today, an announcment was released, and it went up another 25%.

Nothing suss?

However, I don't understand how todays announcment can be a good (or bad) thing though?

Anyone able to explain it to me please?

 

[comptec]

maybe investors are more confident? less interests to pay because of the assets sale etc..?

umm.. value of the share is questionable, but having said that there will always be time for over price shares

and that is where if you jump in and out at the right time there is money to be made (for day traders)

I think it will probably go right upto .16 cents before it correct itself (at least that is what I'm betting on)

 

[Kremmen]

However, I don't understand how todays announcment can be a good (or bad) thing though?

US retail figures have been expected to be awful across the board. The figures there aren't nearly as bad as the worst case expectations, and the growth in supermarket sales in the US, in particular, have to be a surprise to the market. CNP's income is looking much better than most would have expected. The real question is whether this is enough to matter to investors, with most of the company being given away to the banks anyhow.

 

[ricee007]

The real question is whether this is enough to matter to investors, with most of the company being given away to the banks anyhow.

And whats the answer to this question, in your opinion? Is it enough to matter? I bought $2100 worth, and its now worth $300 (rough numbers).... I missed my opportunity to shove a stop loss in. Recently it was worth $204, and not worth selling.

I've said for last few months its worth pocket change, I might as well keep it....

I'm going to have a VERY hard time realising a capital loss of $1500 if it goes up double what it is now...

Hmmm

 

[nomore4s]

Please Note - All posts discussing CER have now been moved to the CER thread.

Please post in the relevent threads when discussing these 2 stocks.

Thanks for your help.

 

[YELNATS]

CNP is up about 100% this week from about 9c to as high as 18.5c today.

A preemptive letter from the company has been sent to the ASX indicating they have no knowledge of why there has been such an increase in price and volume.

Not looking a gift horse in the mouth, I have taken the opportunity to offload about half of my holding.

Does anyone have any ideas of why the sudden interesrest in CNP?

 

[ricee007]

Yellnats. I want to sell, but my $400 or whatever it is worth isn't worth bothering about.

If it goes good... win. If it doesn't.... I've made more profit today than I own in CNP shares.....

 

[SmoothZT]

Was actually contemplating investing about $5,000 @ 16c per share into this company with the "hope" it would one day return to its prime value it was once at. Surely if it hasnt gone down by now, it could be one of those "I made it rich by investing in the Battered and Bruised Centro 10 years ago" stories.

Any thoughts, Money going into the bin? let me know