Centro Retail Trust (“CER”) is an Australian Securities Exchange (“ASX”) Listed Property Trust managed by Centro Properties Group (“Centro”).
Listed in August 2005, CER offers investors an attractive, stable income return with exposure to quality Australian, New Zealand and US shopping centres. CER's portfolio is valued at A$9.61 billion.
Centro Retail's investment philosophy is to provide investors with access to pure retail property ownership together with conservative long term interest rate and foreign exchange risk management. As such, CER will seek to protect its forecast net US$ and NZ$ income and equity through long term foreign exchange hedging.
| Key CER Statistics |
Dec 07 |
Dec 06 |
| Total Property Assets |
$9.6b1 |
$2.4b2 |
| Number of Centres |
452 |
142 |
| Operating Distributable Profit for 1H08 |
$105.7m |
$33.4m |
| FY07 Distributions Per Security (cents) |
n/a |
6.3 |
| FY08 Forecast Distributions Per Security (cents) |
Undeclared |
n/a |
| FY08 Forecast Tax Advantaged |
Undeclared |
n/a |
| Net Tangible Assets Per Security |
$1.65 |
$1.88 |
| Look Through Gearing3 |
|
|
1 Based on an AUD/USD spot exchange rate of 0.8816
2 Based on applicable hedged rate
3 Reflects the ratio of net borrowings to total assets adjusted for relevant borrowings of equity accounted investments
The target gearing of CER is less than 60% (on balance sheet). Given the stability of CER's retail property income, the Responsible Entity believes this level of gearing is appropriate. In its management of CER, the Responsible Entity intends to focus on consistent growth in distributions by means of its intensive retail property and development management focus and prudent capital management.
| Gearing Ratio |
Policy |
31 Dec 20071 |
30 Jun 20071 |
31 Dec 20061 |
| Look Through Gearing2 |
50 - 65% |
59.0% |
58.5% |
63.4% |
1 DRP's have been deducted from borrowings
2 Reflects the ratio of net borrowings to total assets adjusted for relevant borrowings of equity accounted investments